New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-15
THE FINANCIAL SYSTEM.
A WELL KNOWN BANKER DIsPoSEs OF
THE BRYANITE CONTENTION
THAT IT is TN-AMERICAN
ia the Editor OF The Tribune

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at Chicago in 1896 TOR IAN American financial
system made by the American people for them
selves" This demand involves the denial that
the American people have an American system
or that the system they have was made by the
American people for themselves 1t also in
Guides the affirmation that the American people
have been legisating the subject OF the
finances for over a hundred years and that the
product OF this legislation is not American and
not made by the people for themselves
The object Of this communication is 10 affirm the
denial and deny the affirmation expressed by or
contained in or deduced from the financial plank
Of the Democratic platform. and to claim that
our present monetary system is the American
system and IS the necessary and logical out
growth Of the political principles of our Govern
rnent
To be truly American our financial system
must have been the deliberate choice Of the
American people and their choice must have
been guided by and IN harmony with the genius
~ our institutions. II must be acknowledged by
all Populists that the beginning of the present
form Of government OF the United States was
when the Constitution was ratified in 17SS Let
the words by all Populists" be noted for in
1896 the Democracy was merged into Populism
truly and completely as was the old Wing
party into the Republican when the Fremont
thunders were heard in 1856 The principles Of
the old Democratic party have been given a sub
ordinate place. and now the old time Democrat
finds himself Ike the old time Wing without
party. and N many cases with more approval of
Republican than Populist principles We have
now 10 deal with a Populist party and a Popu-
list candidate. The political struggle has moved
of the old battIehelds, whose strategic positions
are no longer Of value. Hereafter social ques-
tcns viii divide political parties. The sound
PRINCIPLES OF the old Democracy have been as
simulated by the Republican party, and old time
Democrats can feel now a certain sense Of
proprietoTship in the Republican party which
they never have been able TO feel in any previous
Presidential contest
ITS BEGINNINGS IN THE CONSTITUTION.
II We have American financial system,
which the Populists deny. we should expect to
find its beginnings in the Constitution. Fortu-
nately the discussions which took place in the
formation Of that document are preserved. and
The record IS clear which shows US how the first
financial principles Of our Nation were adopted
Roger Sherman said before the convention:
TINS IS g favorable crisis for crushing paper
money" and the convention did crush it by
placing these provisions in the Constitution:
The Congress shall have power to coin money;
and no State shall coin money emit
bills Of credit, make anything but gold and
silver legal tender in payment OF debts" The
first article in the financial creed Of the United
States was thus declared 10 be Sound Money"
In opening the convention Governor Randolph
had said that one Of the reasons why new
Constitution was needed was TO stay the havoc
q paper money" The crushing of an irredeema-
he paper money a forethought and not an
afterth0ught II was a coup de grace at the
end OF the fight
There is no trace in these discussions of the
modern questions Of ratio and bln4etallisrn The
contest was between an irredeemable paper cur
Iency on the one hand. and gold and silver in
coins whose denominations were practically Of
equal value. on the other. The laws which had
governed the coinage OF the colonies provided
that gold and silver coins should pass as legal
tender at their intrinsic value. The decision Of
the question OF ratio during and before the
Revolution was by market quotations. and the
choice Of metals for coinage by convenience
The ratio was not holy ratio" but com
nlercial one. Money transactions were few and
small in amount early in the eighteenth century
and the bulkiness Of silver was then no objection
tts use. AS the country became richer. con
reHience required that gold should be made
legal tender. as It was in Massachusetts in 1871
after bitter political struggle. When in the
ten OF twelve years after 1884 the price Of
silver declined one-half in the markets OF the
world, We did just as our ancestors did before
the RevoIuaon-we maintained the value Of the
dollar ar its gold valuation.
The question then arises. Where did the power
come from which gave sound money Con
slttutiOn. with its purpose TO fix the proportions
between the values of gold and silver according
ID their market price IN the commerce Of the
Torld2 Wall Street q political power was
not in existence. Roger Sherman and John
Langdon, TWO Of the prominent opponents Of
Tredeenable paper money, came from Connec-
lieut. and Hampshire respectively. Eng
lands money power did not control the con
Feution. for the bitter memories Of the Revou-
ton were then only five years old. The Spanish
nilled dollar, and not the English pound gave
The name 10 units OF value. II not a
foreign influence that crushed paper money.
THE CRUSHING OF PAPER MONEY.
The explanation IS that a fountain cannot
send forth from the same opening sweet waters
and bitter The trainers Of the Constitution
acted from high and pure motives; they sought
10 protect the rights Of the people TO encourage
honorable dealings to set a limit TO slavery, 70
restrain the power TO declare war and to make
strong Government that would command the
respect Of all nations That in a document SO
Prepared its trainers, so inspired, could intro
ouce an engine Of imposition and fraud" by
sancuoning the issue Of irredeemable paper
money was q mental and moral irnpOssibility
ne spirit which led the trainers Of the Constl-
tuition 70 guard the sanctity Of contracts and
70 adopt whatever legislative provisions were
"isest and best, led them 10 provide for an
honest currency system, based gold and
slFer a. the relative proportions Of their then
NlafEet price. Honesty. made law by the in
'loiabiiity q contracts. could not be coupled
With the imposition and fraud" Of paper