Year: 1869

lIaaon should be to abandon the attempt to reason
from false standard. We must. 10 begin with,


s there IL but one par and that par II gold. Since
tne earliest records OF humanity gold and silver
have been employed ss the equivalent for efecting
attempts have been made to substitute something
else as money, but In spite Of all gold and silver
money Of mankind. The gold in the shield Of
Achilles the shekels that bought the neld ct
Machpe!ah, the pieces OF silver, the price OF the
blood OF our Saviour, win be current coin when the
greatness win be folded away among the records Of
ard value that win not be controlled ana regulated


by the standard Of gold. No degree OF isolation no
expedent OF legislation can save any nation which


the operations OF this same law. Like the tides OF


tne ocean or the movements Of the planets it is be-


yoad srd a. our @ This higher law Of the stand


all prices even Of commodities that do not enter into


lorelgn exchanges i is utterly idle for commercial


merce of eight hundred millions annually W ith


cluzens Trading IN every part OF the word, and re-


M alnuay s iour hundred thousand emgrants,


trade. Different nations have tried various expe-
dents TO evade It, and have always failed. For CEN


foyed but II only took more OF them to buy certain
commodity. In modern times paper money or credit
nas oeen supstirnted ;a FOR real money AS long as
IN the country 1t operated well. 1t promoted ex-
changes and gave great activity to enterprises aud





But when the paper money was increased or the
gold exported the paper money deprecated: 1t had
less purchasable power prices rose and either the
paper money became demOnetiZed, was rejected and
or the false standard was advanced in
value to the gold standard. The most successful
took place in Great Britain in 1Ss7 The Bank q
England then, having in circulation fifty five million
dollars OF notes, was forbidden by act OF Parlia.
made legal tender. By 1910 the amount Of them
was gradually increased to one hundred and ten
million dollars. It was observed that though gold
was demonetzed and Its export prohibited, yet that
Its market value had risen near twenty per cent
or from f46 14s Cd. to f56 for pound Of gold
took to treat state bank bills as lawful money They
soon became deprecated, ana when the war was
oyer ana y became necessary TO appreciate them to
the gold standard, notes, banks and debtors were
swept into general bankruptcy, and the people com
menceq again upon the solid basis OF gold and silver
and the rebels undertook to make paper not merely
the representative OF money, but real money The
paper money OF the rebels followed the course Of
vet this does not impugn the wisdom
OF paper currency founded upon the credit
of great public danger legal tender in payment OF
debts. Such paper money has exercised q pow erful
in ancient as wei as modern history.
1t enabled Great Britain to maintain her wars
against Napoleon. Without paper money and as
have ana senae I'VE coua
armies during the recent war. Gold was banshed
by the war; The quantity was too small for the vast


legal paper representative Of value The state bank
notes were wisely excluded from national circna-
tion. We then cautiously issued our legal tender
notes. carefully limiting their amount, and only IN.
crcasing the amount when we could not borrow
them back at reasonable rate Of interest. We
the highest necessity, compelled our citizens
to receive them as such; but after ali they
were only forced substitute for money the promise
were made the legal standard OF value their own
value was daily liked In gold in the open market In
dark days Of the war on and tried to arrest It,
We utterly failed. The effort was patriotic, but 1t
was impossible England did the same in her wars,
She passed laws forbddmg the purchase and sale or
expectation Of gold; but like ours her efforts were
abortve. am not ashamed to confess my part in all
paper money as the true standard OF value and
confess 1t was impossible. Every intelligent bus
ness man watched the daily market OF the gold
barometer, which, with unerrlng certainty, fixed
the value OF our greenbacks, OF our public credit
and bonds as 1t did the value OF our cotton
ard OF value and the actual agent Of exchange must
always be kept In view. One must be gold and the
other ought to be paper money convertible into gold
such paper currency, with proper measures to meet
pancs or extree drains Of Specie Is proven BY all
experience to be the best possible currency that has
rency cannot exist In a commercial Country. FOR
necessity will compel merchants viii devise and the
people VIII use some representative OF money,
tlfcates OF deposit, or bank or government
paper money. whatever theorists NAV su0.
SiefadS nut one test Of healthy paper currency,


We h0P "a ~ convertibility into gold coin r. then,
Ing It to its place as legal standard OF money! why
not allow our citizens to base their future contracts
courts legal and valids There are difficulties in
applying new standard to existing contracts MADE


annv a Ts but M ns s dcay y Goes
specie payments, and yet we forbid all men from
dealing in specie. Such contracts are put upon
sIA Aftnfr a.xxtx
would seem that il we were at ali sincere in wishing
specie payments, that we should not only promote
specie contracts, but should encourage them. Con-
tracts to vast amount are from necessity made
upon the gold basis. All our foreign commerce, ex-
ports and imports, amounting annually to over
eight hundred million dollars, are based upon gold.
The price Of all public securities Is fixed by the gold
standard OF London and Frankfort. The sale or ali


imported @ goods ny the importer to the oboers Is By


In New York often amount to one hundred million
dollars on the Pacific slope gold is the only stand
Why not recognize the fact legalize these contracts
and conform our measures TO the gradual
o. existing
L we were leeislating 10 protect the unwary we
.honld not for day permit the existence or uncon.


he contrivances for cheating the aboring classes OF
none has been more effectual than that
which deludes with paper money! The chief reason


Is that such paper money IL so iuctuaing that none
but the intelligent and crafty can estimate Its uctu-
atoms, while the unwary assume that II s equiva-
ent 10 ROlu. III we, tnen, leXlslute 10 protect the
lnwary we should require all contracts to be made
,n the gold basis. but experience shows


that the true basis oil contracts IL the consent of the
parties We can leave the interest OF parties 10
regulate equivalents and we can protect gold coIi.


tract against usury and fraud much more easily than
q contract payable IN currency. The Senator from
Indiana proposes 10 add to the burden or existing
contracts an annual interest equivalent to twelve per
,ent by requiring gold payment in two and half
fears. II the parties were left to adjust this matter
,y contract they are not likely to adopt more Sc
rere measure to the debtor than this. II II Is unsafe


20 allow parties to make q contract In COIN how can


hey be allowed to make contracts In currency to
30 appreciated In coin In two ana q half yearss


4 coin contracts are brought about by coercion
md fraud, the courts will not enforce them and n
gold Is required as consideration for payment OF
J currency contract, 1t Is usurious and will not be
enforced. Practically, any law requiring resump-


ion OF specie payment is a law adding to the
amount Of . currency debt the full depreciation OF


he currency, unless you either scale the debt al


low the parties to adjust the matter between them
selves. The former proposition is indefenslble and


The latter s the only way by which the creditor and
debtor may by mutual agreement adjust currency
contract by equivalent con. All contracts to
nav money are contracts for the delivery OF