Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1900-01-17
FINANCIAL DISCUSSION.
The Cause Of Monetary Reform Cannot BE
Advanced by misrepresentation
Sick 20 the Facts.

advanced Dy Maoreprosentatton-
Sick TO The Facts
From an article in the Chicago Dis
patch, commenting upon the currency
bill passed by the house, clip as fol-
lows:
Anyone who is capable of reading
the signs fthe times must recognize
the fact that now is exactly the most
unpropitious moment to force this
country to gold basis"
And the same sentiment, or idea,
see expressed in diverse verbiage, in
not few populist papers.
Then, again, note that many pa
pers, both populists and democratic,
are asserting that the contemplated
currency legislation makes private, or
individual debts payable in gold only,
| and that such was not the case under
present laws.
1t seems to me that these are very
foolish assertions to be made by pop
| ulists, who pride themselves upon
their accuracy and adherence to facts.
Specially is it true that populists, as
advocates of a scientific monetary sys-
tenn and inconvertible paper money,
should steer clear of the clap-trap and
| sophistry which are part of the stock
| in trade of the politicians who are
free silver men solely because they
think its advocacy may result in the
possession of the spoils of Office. Pop
ulists are not metallists and their adj
vocacy of silver coinage is simply a
| plea for more money in the form least
calculated to run counter to the pop
ular prejudice in favor of the metal
lie superstition. incidentally, the ad-
vocacy of silver coinage affords an
| excellent opportunity to exploit the
| power of nations coinage ''fiat."
But to return to my text:
In the first place, this country has
| been upon a gold basis for &c years.
Section 3,511, of the Revised Statutes
| of the United States, which became a
law in 1873, established the gold dol
lar of 25 $40 grains, nine-tenths fine,
as the unit, or STANDARD" of value.
| In the second place, the currency
bill, as passed by the house, expressly
provides that nothing contained there
in shall be construed or held to af-
feet the present legal tender quality
| of the silver dollar, or of the subsid-
iary or minor coins, or of the paper
currency of the United States
So, then, aside from government
bonds, all debts are payable now just
as they were last year, or 25 years
ago, and the country is no more upon
a gold basis than it was in 1873. Sill
| J01l lov-c -
ury notes of 1890 are yet as good
legal tender in payment of debt as
they were before the currency bill
was passed, or as they have been
since 1878, but it is likely that the
bulk of private debts will continue to
be paid with checks against credits
upon bank books, just as they now
are.
The truth is that debts, in the last
analysis, are not paid with money
but with labor, or its products. Debts
are simply the evidences of an ex-
change of labor, or it's products
whether they are due from individ-
uals or nations. International com
merce is simply the exchange of COM
modities and products and it is the
balances only which are theoretically
paid in money. / say theoretically y
because the United States has never
received one cent in gold, or anything
else, for a so-called favorable bal
ance' of $1,000 100000. To settle
debts between individuals or firms in
the United States and Europe gold
is shipped-not as money, but by
weight-and this is the best argu-
ment gold bugs have to offer in sup
port of a universal gold standard
And, strangely enough, it is the best
argument populists can offer to sup.
port their contention for a national
inconvertible legal tender paper
money, which cannot be shipped
} abroad by merchants to settle bal.
ances, or by unpatriotic money mon.
gers who will plunge their country
i. into panic for the sake of few dol
lars in commissions.
If, then, debts are rarely paid with
) actual money, what effect upon, OF
control over, debts does the "stand.
ard or .'basis' have, be it gold OF
silver, or both metals?
Simply this: The amount of labor
: | OF quantity OI 1dDOT . pTOQuctS, tna1
it will take to pay a debt, depends
,, upon the price of labor and commodi.
ties. The general range or level OF
!, prices is governed and controlled by
, the volume of money in circulation
while the metallic fallacy, or commod
ity money idiocy ties the volume ot
money to the supply of the metal, OF
| metals, used as ''base" or STANDARD.
and as the supply of gold and silve,
. combined must necessarily be greater
than either metal alone, the use OF
both metals as the standard must re
, suit in a higher range or level OF
prices for products and commoditie.
and thus require less labor to pay an,
given amount of debt.
Now as to the equities in the case
Aside from government bonds, it i.
very doubtful if any debts exist il
the United States which were not as
|, sumed, or contracted, since the dat,
at which the nation was put upor
the gold basis, and 1 believe it is saf,
to assume that most of the presen
existing Indebtedness of individuals
firms, cities and towns were con
tracted within the past Is years, o.
more than IL years after the golt
dollar was made the STANDARD o