The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-06

the other The interests Of labor and cap
ital are always identical They never
be divorced They are so interIaced and so
lnterdependent that money which injuri-
Dusly affects one cannot beneficiaIiy AFFECT
The other They must share and share
alike. They are either benefited or injured
In common by any policy or scheme of
monetary legislation. This is truism.
IL Is a conclusion so obvious that Ii Is
almost offense TO intelligence TO restate
IT. But there are those who insist that
gold Is class money, and discriminates
IN its beneficial operation among the
people, favoring some and inJuring others.
Such statement, IL is needless 10 say, Is
but mere assumption, founded upon no
actual experience nor upon reason which
should detain the attention for moment
No argument is required TO sustain the
wisdom OF a stable currency, for an unsta-
bic, huctuating currency unsettles and dis
turbs. and brings a train OF evils which are
as meTciless and destructive as the raw
ages of war. In verihcation OF this we
have but to recall our experience when
there existed a grave apprehension as to
the ability of the government 10 maintain
the integrity of our currency.
Gold has been the monetary standard OF
the country since 1873. In fact, IL has
really been the metal standard of value
since 1894
The re-enactment of this standard is a
reinsurance TO commerce. labor and capi-
tai that no change is to occur in our mon
etary system which will place them in i'm
mediate serious peril Upon this re-
newed pledge they may go forward. plan
ming. building and expanding for the flu
ture- 1t allays apprehension; IL dispels
fear. IL becomes the secure foundation
OF expanding commerce-of a larger
commercial growth.
THE ISSUE SHARPLY DEFINED.
The Issue between the two parties is
sharply defined. The one adheres to the
gold standard and the consequent use of a
large but limited volume of silver and pa
per currency. its full equivalent in effect
ing the exchanges of the people, while the
other is for the maintenance of the single
silver standard. with gold expelled from
the channels of trade. 1t is true this is not
its professed policy. yet it would be the in
evitable result IL its policy were adopted.
The maintenance of the gold standard
with silver circulating as currency at a
parity with gold is the only Dimetallism
possible with so vast a difference existing
between the value of the two metals in
the markets. The divergence in their mar
ket value makes Ii impossible TO maintain
more than limited amount of silver at a
parity with gold at an arbitrary minting
ratio.
The fact has been known and recognized
by financiers for centuries that the cheaper
metal will expel from circulation the dear
er. This is the Gresham law. which is Sc
cure against amendment or repeal. De-
based silver will drive gold from circula-
ton, and debased 1egal-tender paper Will
usurp the currency functions of both gold
and silver.
But IL Is said that opening the minis of
the United States to the free coinage of sill
yer and gold at the ratio of Is to 1 will re-
suit In enlarging the demand for silver.
and in enhancing its market value to an
equivalency with its minting value so that
we will have no debased silver. In other
words. that silver under unrestricted COIN
age will rise from commercial ratio of
3i.I9 to 1 TO IS to l. Ii this were true it
would go far toward solving the problem
which vexes US Ii is well to inquire wheth-
er this claim has any basis. Is it founded
upon experience? Is there warrant for IT
in the monetary history Of the world? II
so, where? In what country to-day where
there Is free coinage OF both silver and
gold at the proposed ratio, or at any ratio
has silver been raised to an equivalency
with gold? Unless the history OF coinage in
our own country and in many other coun-
tries is false. the claims OF the advocates
OF free-silver coinage rest upon unsup-
ported assumption.
The first free coinage law of the United
States was adopted in 1892. The ratio then
selected was not chosen arbitrarily but
was based upon the exhaustive and able
report OF Alexander Hamilton, without
Doubt the greatest financial genius the
country has produced. Hamilton reported
tand his report received the approval of
Thomas Jefferson, then secretary of state)
that the minting ratio should be substan-
TALLY the market ratio between the two
metals. He had ascertained with care that
the market ratio between silver and gold
I'm the United States was substantially Is
- j, and this became the minting ratio
under the law.
There can hardly be a better rule i'm any
country, said Hamilton, for the legal
than the market proportion, if this can be
supposed to have been produced by the
free and steady course of commercial prin-
cipies The presumption in such case is
that each metal finds its true level, accord
Ing to its intrinsic utility. I'm the general
system of money operations"
This rule has lost none of its force nv
lapse OF time. and Is as sound and univer-
sal in its operation to-day as when uttered
it Is totally ignored, however, by the ad-
vocates OF free-Silver coinage at a ratio
which most fagrantly disregards the true