Pike County Democrat, Volume 29, Number 27, Petersburg, Pike County, 11 November 1898 — Page 5

METAL CURRENCY Its Effect Is to Steady the Volume of Money. = mVTFTS L0WEEI5G OF PBI0E& fh*VM of a Magi* Metal Comacjr Fro4mm the Opposite ll«*ult—Shrlaka** «f the Money Volaaw Dapnatw Com. modify Value*. Um*m Production mad Cato Omn the Was** raid For labor. In the not of 1890 providing for an increase in the purchase of silver bullion by the government it was declared to be "the established policy of the United States to maintaiu the two met* ala gold end silver, on a parity with each other upon the present legal ratio or such ratio as may be provided by law." Tbe fact that the method adopted by this act to maintain the parity of these metals with each other was not successful docs not render this declaration uugutorv or in the slightest degree weaken its foroc It is still the established policy of the United States to maintain their parity with each other upon a legal ratio. The value of gold and silver is dependent upon and is governed by their use for monetary purposes, and to maintain their parity or equality of their value upon a legal ratio the law must provide for their equal use as money upon that ratio without discriminating against either metal. In other words, the law must place both metals aud provide for their unrestrict

ed coinage upon (bo r»uo it prescribes and equally endow the ooiua struck front them with the money function. We have learned from experience that their parity cannot, be maintained by purchasing a portion of one of them as merchandise for monetary nee and continuing the other in the conditions of a money metal. While the coin struck from the metal so purchased will be on a parity wi the coins struck from the other met a., for the reason that they are equally endowed with the mouey function, there will be a growing disparity between the coin agd bullion value of tbo metal so treated. We know that for a period of 70 years—to wit, from 1808 to 1878, daring which there were greater changes in the relative production of the metals than during any like period in the history—the two metals, gold and silver, were practically ou a parity with each other, aud that during the whole of that time 15V* ounces of silver would exchange for an ounce of gold in all the markets of the world, and this because the mints of France were open'to the unrestricted coinage of both metals upon that sptio, and the coins struck from them were unlimited legal tender—that is, they were equally endowed with the mouey function. For many centuries prior to 1878 both metals were in the world's money stock, aud their separation from each other was so gradual as not to practically interfere with their joint use as mouey metaW The way the bimetallic principles briug the metals together and maintain their parity with each other can easily ho understood. It is made plain by tbo following familiar illustration of Jevens: “Whan two receptacles for fluids are separated from each other, the height to whioh the fluids will rise in each dopoads upon the quantity poured into it. Fat when there is a connecting pipe between them the fluid will rise to the same level in both, whichever receives the supply. ’* And this, says Jevens, exsotly illustrates the movement of the metals in western Europe under the bimetallic law of France of 1803, which provided for the unrestrieted coinage of both metals and gave to the coin struck from each the office of unlimited legal fonder. Their legal tender function, allowing the ' coins struck from one of the metals to freely take the place of the cnhis struck from the other metal, far monetary purposes. wsb the oonnccting pipe, and as the fluid discharged from the common outflow was a single fluid, though in the inflow the oolor of one of them may have been white and that of the other yellow, so where the standard is bimetallic the resulting money is a single bimetallic money, and its relation to commodities as expressive of value as is a single standard, though it is called a bimetallic or double standard because two metals are selected for full mono

vary use. The effect of the us of the two metal* In the currency 1* to steady the volume of money nod consequently price* of commodities mud prevent that great depression of price* caused by a shrinkage of the volume of primary money and credits resting upon it which inevitably takes place wheo only one metal is used. William EL Crawford, secretary of the treasury under President Monroe, said in his report. f«k 20. 1820: **1426 fluids, the precious metals, as loug as they are employed as the great measure of value, constantly tend to preserve a common level. Every deviation from it will he promptly carnoted without the intervention of law. ** Their equilibratory action In the currency will tend to an equipoise of their value. If in the act of Feb. IS, 18?g. instead of stealthily dropping out the silver dollar and, putting the gold dollar in its place, we had changed our ratio to the French ratio, which we* then the prevailing ratio of Europe, by adding eight-tenths of a grain to the weight of the gold coin or taking 13>* grains from the weight of a silver ooin, France and the Latin union slates would not have closed their mints against silver, and this silver question would never have arisen. The accession cl this oountry to these bimetallic states in the coinage of both metals upon the eame ratio would have prevented their rupture, and silver and gold would have continued side by side upon a parity with each other upon that ratio in the

—... ========== world’s mousy stock as they had beea since 1803. | M. Cernuschi, in expressing to our : monetary commission Feb. 6, 1877, Ms I opinion upon this subject (4 ‘ Niimisma, ” page 68), said that if France -and the Latin union should then open their mints to the frse coinage of silver at the ratio of ISJ-j to 1 and the United States would do the same it trouid undoubtedly insure absolute parity between the metals at that relation. It it true, he added, that “the United States should resume specie payments,” which was done Jan. 1, 1879, and that France should not be left alone to absorb the silver thaler of Germany, which would not be the case with the United States as her effective ally. Ernest Seyd, to whom the Hen. Samuel Hooper, a mender of congress, submitted for his consideration the bill which became a law Feb. IS, 1878, in his letter to Mr. Hooper (Coinage Laws 879-81, page 883), said: “I think that the United States with both her gold and silver mines is in the eminently favorable position of upholding the toll use of both gold and silver, and that the donble valuation, as it existed before, would be a great benefit to the country. * • * America then should hesitate to enter upon this course”— that of a single gold valuation—Mwithout a full previous investigation on the immensely important considerations appertaining thereto. ” Mr. beyd further said (page $86): "Men like yourself, on framing a coinage bill, undertake a gigantic responsibility, which strongly affects not only a whole nation’s welfare end happiness, hot also that of the world at large. Pray do not despise this language. The deep study of all tht principles and interests connected with the organisation of social life warrants it” This subject was not brought to thr attention of either house while the bill was pending, but that which wrought this mighty revolution in onr monetary system was adroitly concealed in a bill containing 67 sections modifying our

uiuii laws anu ueuuue ■ inw wiuioui exciting observation. Mr. Seyd in this letter recommended our coining a silver dollar of the weight of 400 grains of standard silver, which would have conformed our ratio to that of France, and this probably would have been done if attention had been given to the subject and it had been properly investigated. To carry ont tbrf above recited policy of maintaining the parity of the two metals with each other upon the present legal ratio or such ratio as may be provided by law we should open our mints to the unrestricted coinage of both metals upon the present le gal ratio of 1 to 16, and if upon a fair trial their disparity shall be so great as to cause any practical difficulty we should slightly change the weight of the coins struck from one of the metals, which could probably be done without seriously interfering with the ooins already struck. The expense and inconvenience attending this pit***w would be a mere trifle as compared with the evils we must suffer from the depressing weight of a permanent gold standard. In 1896 M. Cernnsohi said (Chicago Record for Sept. 6, 1898): ®“The free coinage of silver at 16 to 1 re-established by the United States without the concurrence of Europe wo- be a step ip the direction of inters. .* ual bimetallism, for under the repine of the uew standard the productive power of the United States would receive so enormous an impulse and this development would have such a disastrous effect upou the economic and financial interests of Englaud and other European nations now governed by the gold standard that it may bo. confidently predicted in advance that the course of events would ■ force the adoption of international bimetallism as t bo only true solution, even upou those who today deny the possibility and efficacy of it." It is said that the recent wide separation of the two metals precludes the possibility of our coufidering so narrow a ratio as 1 to 18, What has caused this separation of the metals? It certainly cannot be attributed to auy change that has taken, place in their relative production. At the beginning of the present century their relative production was a little more than 8 of silver to 1 of gold. At tho middle et the oectury it was nearly equal, and in the fifties their relative production was noarly 4 erf gold to 1 erf silver/ But these changes did not prodooeany practical effect upou their relative valuation. They were linked together by the operation of the hi metallic principle, and they rose together from 1809 to 1849 as the inflow of sil

ver aiuumsnea, ana aiivrwara iney zeii together m the inflow of gold increased. An increase or decrease in the output of either metal pimply bad the effect of increasing or decreasing the volume of money without disturbing in any practical degree their relative value. Since 1879. the period of their separation, the production of silver has very slightly If at all exceeded that of gold. Their separation from each other commenced in 1873, when silver was excluded from the money stock and reduced to the sitnation of mdehandise—when it waa transfected from the scale of the balance occupied by money to the scale occupied by property, and as • necessary consequence gold, the sole occupant of the manqy scale, has risen in value, and silver, with other property, has fallen. In other words, prices have been and are persistently falling. The disuse of silver as a money metal is the sole oanse of its separation from gold, and the only possible way of restoring it to a parity with gold is to replace it in the money scale of the balance by endowing it with the money function equally with gold. This oertainly will have the effect of arresting the foil of prices and canning them to gradually move in the opposite direction, thereby energizing all our industries and giving ample employment to labor. Certainly we ought not to forego these advantages in order that we may try to pay our debts, public, municipal and private, in money of the highest value or purchasing power,

REPUBLICAN CURRENCY REFORM. In my last communication I nailer* i took to show just what the Republican platform means bp *‘comprehensive and enlighteued monetary legislation.” This legislation is not a matter for the Re* publican leaders to settle in the future. Even if it were not fully determined on, the people ought to be taken into their confidence moreth&n this vague, smooth sounding platform declaration does. But they have fully deoided on this “currency reform" and it is embodied in house bill No. 10,289. This is the bill whioh was favorably reported by the house oommittee at the last session, sad in this letter I want to briefly discuss that feature of the measure that makes our coined silver dollars redeemable in gold. (See Sec. 6, H. R. No. 10,989.) As the law stands today, there is no provision for free or even limited coinage of silver dollars (except the provision in the Bond hill for ooining the seignorage, whioh has been absolutely ignored by the treasury officials), but there is an amount of diver coined already that is full legal tender standard j money. There is no statute that permits their redemption in gold and there has been no policy adopted or attempt made by the treasury oifioials to redeem them in gold. They have the equal exohange or money value of gold, simply because they pay as much debts and taxes in this country. In any event, the 090,000 of coined silver dollars enlarge the volume of our standard money that

much and in a certain way hare the effect of that much gold coined. But if the law ie to be changed so that this silver ia legally redeemable in gold, at least two vicious result# follow: 1. The volume of standard money ie contracted, for instead at beitur part of oar standard, legal tender money, our silver dollass will become mere cur* reuoy. Our ooiaed gold will be loft the ■ole standard money; it will be the sole money of redemption and the money in which government bonds must be paid. A large part of this funded national debt was created on a paper basis when greenbacks were legal tender and would have paid it. It has been refunded on a ooin basis, when under the law and under the terms of the oontract. It could be paid in either gold or silver dollars. New they propose to make the public debt payable only in gold. This purpose was fore* shadowed In the defeat of the Teller resolution in the 'last house, and In the declaration of President McKinley in his speech to the American Manufacturers* association, Jan. 27, 1888, that “no matter what the language of the contract, the United States would pay its obligations in the money reooguised | as the best at the time of payment.” And, as this purpose cannot Well be car* ried out by refunding our debt and issuing gold bonds in the plaoe of ooin bonds, it is to be done by making silver mere currency and gold the sole money j of payment. If there ever was danger in making our public debt payable in gold, that dauger has increased iu recent years. The injustice and nnwisdom of gold payment has grown since McKinley voted for the Matthdws resolution in 1878. which declared that our ooin bonds could be paid in either gold or silver dollar* The increased demand for gold as standard meuey, here end elsewhere in the world, has caused its value to rise aud has correspondingly caused properly and pries# to falL A wise | economist would not increase that demand. Besides, our debt has grown in the last few years, $460,000,000 (largely due to the attempt to maintain gold redemption), making gold payment not only! more difficult bat more aujust than ever. Again, if we take away the money inaction irom f4-ift.000.000 of silver, we not only reduce the volume of standard money that much, but by waking this silver redeemable in gold we j add that new burden to gold. This is an experiment we need not try. 2. The hypocrisy of the proposition

cau se wtu on a moments renecuon u silver i» to be mere currency, redeemable in fold, it amount* to mere proa* i«e* to pay tbe gold book of Ik It stand*: just as the redeemable paper dollar does, and if this be true, why not hare all paper currency or paper promises to pay gold? It is a sheer waste of good material to nee silver to stamp these promises on when we can nee paper to print them ou. Why not -dispense with sllveit It is because they do not eare to alarm the people by eooh a proposal. Even in 1 the bill the plan of gold redemption is veiled in the senteooe: “Par out gold coin in exchange for silver dollars.'* They are seeking to do by indirection what they may not propose directly. They are seeking to surreptitiously fasten this legislation on us. SL It Hanna says H\s poll of the house shows thataU the "sound money” members favor it and yet they eome back to their oeastimeats aad talk of “honest dollars" and “com prehen si v« monetary legislation.” Not oaa word to say In defense or explanation of a bill to which, if Mr. Hanna speaks the truth, they have oommifted them selvae These speakers and papers are silent, but the work is ready for the next congress if it be Republican. Aad Mr. Hanna says, in his open letter of some wepks ago, that tl^cy were eooonraged to believe that ‘the war would enable them to carry the elections aad control the next congress, and then their proposed legislation would become a law. n forbid that under the guise and Heaven in the name of patriotism they shall secure our congress for soeh nefartoos purposes Hxxxt Wannua. With wheat at 6# cents a bushel the farmers who have bogs might profitably dispose of it as feed, while waiting fee the McKinley wave ok prosperity. difficult a contract it a IcKtaley wave ffaloBDrmfcy Buffalo EDTiuky find it lhaa he anticipates to dees with McKinley** cabinet to part of his shew. . Sr. ‘af ...

Well Children that are not very robust need a wanning, building and fat-iocming food—something to be used for two or three month* in the fall—that they may not suffer from cold. SCOTT'S EMULSION of God-Liver Oil with Hypophoophites of Lime and Soda'supplies exactly what they want. They will thrive, grow strong and be well all winter on this splendid food tonic. Nearly all of them become very fond of it. For adults who

uui very suyn^ a course of treatment with the Emulsion for a couple of months In the faU will put them through the winter In first-class condition. Ask your doctor about this.

Be sure you get SCOTT’S Emulsion. See that the BIB and fish an on the wrapper. All druggists; 50c. and $1.00. SCOTT * BOWNE, Chemists, Mew York. «4FRED SMITHS Dealer to all ktiuta of FURNITUKE!

Funeral Supplies a Specialty We keep on hand at all time* the fliieRt Iin< of Parlor and Household Furniture to be found in the city. Bedroom and Parlor Suits a Specialty. In funeral supplied we keep Caaket*. Shrouds, etc., of the best make.

Skis Diseases. For the sp dv and permanent cure of tetter, salt rhtura and eczema. Chameerlaiu's Eye and Shin Ointment is without an equal. It relieves the Itching and smarting almost instantly and •ts continued use effects a permanent cure. It also cures itch, barber's itch, scald head, sore nipples, itching piles, chapped hands, chronic sore eyes and granulated lids. Dr. Cady’s Condition Powders for horses are the best tonic, blood purifier and~ermifnge. Price, 25cents. Soldh** Do not buy Until you have read the ATLAS Catalogue. Write for it to-day. ATLAS ENCINE WORKS. F,O.B«s141t Iudtaaapalia* la4. MONTHLY I SUFFERING.

*T*bousands of * women are troubled at monthly intervals with pains in the head, back, breasts, A shoulders,sides I hips and limb*, s But they need not suffer.

These pains are symptoms of dangerous derangements that can be corrected. Tha menstrual function should operate painlessly. makes menstruation painless, and regular. It puts the deli* cate menstrual organs in condition to do their work properly. And that stops all this pain. Why will any woman suffer month after month when Wins will relieve her? It For

$1.00 PREPARATIONS 50 Cent PREPARATIONS ... 25 Cent PREPARATIONS .... POROUS PLASTERS . QUININE, per Ounce Bottle-. MORPHINE, per Drachm Bottle CHEWING GUM, per package CIGARS, all Standard Brands for 67 cents for 34 cents for 15 cents for 13 cents for 31 cents for 37 cents for 4 cents for 4 cents Call and see o\*f stock. We carry a full and complete line of Combs, Brushes, Drugs and Druggists’ Sundries. PETERSBURG, INDIANA

pari)itare ei)d U^ertaljit)^

We have the largest stock of Furniture ever brought to Petersburg. Our stock is all new and up-to-date. Call and see out^ne line of Furniture and get our prices before buying elsewhere. x FINE BEDROOM SUITS EO£ $10.00. FINE HALL RACKS FOR $4.00. We have employed a firstclass Funeral Director. We have in stock a full and complete line of * ^FUNERAL SUPPLIES* And have the finest Hearse in the county. Are prepared to attend calls promptly. Call and see us. Telephone 16-a. W. C. Adams & Son, Lower Main Street, Petersburg, Ind.

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] 60® Days® Sac rif i ce® Sale Beginning November 1st, on all i Drugs, Druggists’ Sundries, Toilet Articles c: regulur price, 25o e; regular price, 5e c. Holiday Goods at Sacrifice Call nud see u*. PAUL BROS., Petersburg, ludiauu. c; regular price, oe c. Holiday Goods at Sacrifice Call aud see u*. PAUL BROS., CIGARS AND TOBACCOS. Hood's Sarsaparilla. 67c: regular Scott's Emulsion . 67c: regular Kilmer’s Swamp Root....67c; regular Stiles’ Remedies ......... ..7...67e; regular Pierce’s Remedies....... .........67c; regular Pe-m »»a . 67e; regul Scott'*' Emulsion. ..34o; regul White VVine of Syrui>..Sic: regular Bell’s Pine Tar and Honey.34e: regular Groves’ Chill Tonic ... 34c; regular Bromo-Quiniue..13e; tegular Piso’s Consumption Cure.. s. ,18e: regular One Minute Cough Cure. ..15e: regular Cigar* ...y ..4e Quinine, pea ••unoe bottle....... Aud all other goods in our line in proport ior Prices. These prices i*re f<*r Strictly Cash .S> price, price, price, price, price price, price. price, price, price, priee, price ♦1.00 ♦1.00 #1.00 ♦1.00 ♦1.00 ♦1.00 30c 50e 30c 50c 25c ACME PHARMACY. Next door to Moses Prank's, t«B®t»B®B®B®8®B® _. . % ■; iB®B®B®B®B®B®l®B®B®B®B®B®B®8®B®B®B®l