The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-11-28
Money Battles That Made History
Sound Money From Time OF Hamilton Bryan
neutrality-suspicious.
BY CARL c. CRANMER
(By Associated Pressl

Again ulSCOTudHt HOLeS Oh the
call to battle are sounding in the.
rival camps of the "inflationists"
and the Sound money" advocates.
The resounding resignation of
of Prof. 0. M. w. Sprague from
the treasury, with the declaration
that he plans to fight the drift
to unrestrained initiation" may
prove to be the opening gun in
open warfare that has been waged
behind the scenes for months as
a result of President Roosevelt's
monetary policies.
Many Famous Battles
1t may presage another of the
famous money battles which stud
American history from colonial
days--battles which usually have
cut through party ranks and which
often have been on a sectional ba-
sis.
In Alexander Hamilton's time
the issues were the doctrine of
discrimination" and assumption" /;
in Andrew Jackson's day the fight
was over the United States bank.
The monetary issue gave rise to
Daniel Shay's rebellion in Massa-
chusetts after the Revolution; it
gave birth to he Greenback party
about 1876 and later to the Popu-
list party; it introduced William
Jennings Bryan. his "cross of
gold" speech and the "16-to-1"
coinage of silver issue. And there
was the march of Coxey's army
about the same time.
Agrarian Districts Heard From
Unrest with the rise and fall
of the value of the monetary unit
has been a feature of almost
every serious financial stringency,
usually most vocal in agrarian dis
tricts.
And now President Roosevelt
has declared for policy of lex
perimentation, with the 'tsound
money" group warning that pre-
vious experiments always have
ended in disaster and that the
gold standard is the best system
yet found.
On the other hand, Prof. George
f. Warren says the dollar must be
rubber in weight or rubber in
value. and urges the compensated,
or commodity, dollar that would be
variable in weight.
Presidents Program Sweeping
In successive steps the president
has gone off the international gold
standard, acted against gold hoard
ers. cancelled the gold clause in
public and private securities, re-
jected the pleas of the European
gold bloc' for sterilization, NOV
ed toward an International silver
agreement. and initiated his gold
purchase policy to depreciate the
dollar and lift commodity prices.
American colonists began hav-
ing their monetary difficulties as
soon as they reached shore. Having
brought little money and almost
as little credit with them, they
used wampum and beads to trade
with the Indians, and instituted
barter for commerce among them
selves.
They declared some commodi-
ties. such as tobacco, corn and
furs. legal-tender, and some of the
colonies had storehouses to accept
payment of taxes in this money"
Colonies Issued Paper Money
As time went on many colonies
began issuing paper money, and
set up banks and loan agencies
to issue bills of credit. What silver
there was usually disappeared
because it was over-valued by law.
The paper curreneies soon de-
preciated. In 1740 Massachusetts
currency had deprecated to three
fourths its value.
Finally, in 1851, the English
parliament forbade further issue
Of paper money in the New Eng
land colonies, a restriction that
was extended to all the colonies
in 1864.
Benjamin Franklin said resent
ment at the ban on paper money
had much to do with fomenting
the American Revelation.