reasonable inference that the standard of value has nothing to do with the matter. What has to do with the matter is sufficiently plain if you look at the statistics of production. In 1884 the wheat crop was 357,000,000 bushels; in 1894 it was 460,000,000, an increase of more than 100,000,000 bushels, and there was a general increase at the same time in the product of other countries. Would not such an increase of itself explain the fall in value? The corn crop of 1884 was 1,796,000,000 bushels, that of 1894 was but 1,213,000,000, a decrease of 573,000,000 bushels. Would not such a decrease in itself explain the increase of value per bushel ? CHAPTER XI. THE ENGLISH OCTOPUS. We have finished our examination of the serious part of " Coin's Financial School." What follows is either broad farce or blatant demagogism. On page 124 we have a picture of " The English Octopus." This represents the island of Great Britain reaching out its tentacles to all parts of the world and sucking in gold. A helpful conceit, surely, to enable earnest citizens to reach a decision on a question of domestic policy. How can it make any difference to England what kind of currency we have? We had a more fluctuating currency than silver at one time, but England did not mind. What we owe to England is payable in England, and if her money is pounds sterling we must pay in pounds sterling, if we pay at all. Therefore it is all one to her whether our currency is gold or silver or paper or chips or whetstones. It may be said that she has some money invested in this country in such a way that she must take her pay in our money, whatever it may be. That is true, but she can sell these things, and has been doing so lately to a large extent, and this withdrawal of capital has been the chief cause of the hard times here during the past two or three years. But suppose she does not sell. Suppose that she concludes to take pot luck with us as to these particular investments. How does that fact alter, or in any way affect, the octopus? The theory of "Coin" is that we shall all be better off when we have free coinage at 16 to 1 (which means silver monometallism). If we are better off, the octopus will be better off too as regards his American bloodsucking. But he will be just as much of an octopus as before, and will suck all the harder if he finds the nourishment more agreeable. So the only aim of the picture is to create prejudice against England, or to play upon prejudices already existing. That this is the real aim, almost everything that follows shows. Thus, on page 131 we read: "If it is claimed that we must adopt for our money the metal England selects, and can have no independent choice in the matter, let us make the test and find out if it is true. It is not Amercan to give up without trying. If it is true, let us attach England to the United States and blot her name [whose name ?] out from among the nations of the earth. [Applause.]" Here we have the idea of England seeking to force her standard on other countries, when she does not care a rap what kind of a standard they have. Mr. Goschen, her leading representative at the monetary conference of 1878, was solicitous that other nations should adopt bimetallism and let England have the gold standard alone. A very fickle octopus. WAR WITH THE OCTOPUS. The next thing that comes out of "Coin's" mouth is a little more brassy than the last. He says: "A war with England would be the most popular ever waged on the face of the earth. [Applause.] If it is true that she can dictate the money of the world and thereby create world-wide misery, it would be the most just war ever waged by man. [Applause.]" The applause interjected here and there is in furtherance of the idea that there was an audience listening to this stuff, composed of people so bereft of common sense as to approve of it. But in the next paragraph he changes his tactics and tells us that England is not forcing the gold standard on us, and that we can adopt silver without fighting her. Why, then, did he talk about a war with England being so popular. and why did his hearers break out in annlause about nothing? A little further along he changes his tactics again, and goes in for war once more saying: "Whenever property interests and humanity have come in conflict, England has ever been the enemy of human liberty. All reforms with those so unfortunate as to be in her power have been won with the sword. She yields only to force. [Applause.]" Then he turns against the money-lenders of the United States and rends them, and says: Wait "To that end they organize international bi-metallic committees, and say. on England, she will be forced to give us bi-metallism.' Vain hope! Deception on this subject has been practised long enough upon a patient and outraged people.' This is a rap at that distinguished money-lender, Senator Wolcott, of Colorado, who showed more interest than anybody else in organizing the existing bi-metallic committee. In fact, it was on his motion that the committee was created and an appropriation voted for its expenses. And what is it that Wolcott, the money-lender, is pretending to do? Forcing England to give us bi-metallism! This is on page 133, but on the preceding page it was shown that England's consent was not necessary at all. The next caper of this queer logician is funnier than any of the previous ones. Ha tells us that "only 4 per eent. of the business of the people of this nation is carried on with foreign countries, and a part of this 4 per cent. would be carried on with silverusing nations, while 96 per cent. of the business of our peopic is domestic transactions. Home business." So all the talk of war with England was about a bagatelle. Our trade with England is only one-third of our total foreign trade, and therefore only one-third of four per cent. of our domestic trade-i. e., 13 per cent. We are disappointed, however, to find "Coin" going in for war with England a third time, on page 135, and a fourth time on page 147. Somehow, there is no way of avoiding it; but on page 135 we encounter a proposition which strikes us speechless. It is this: "The gold standard will give England the commerce and wealth of the world. The bi-metallic standard will make the United States the most prosperous nation on the globe. [Applause.]" How these identical effects should be produced by two different policies there is no hint of explanation. It is like saying that cold water will make John the strongest man in the world and whiskey will make James the most robust. A LITTLE MORE TREASON. Next we have another threat of treason and civil war, and a pretty strong one too (page 135): "To avoid the struggle means a surrender to England. It means more-it means a tomb raised to the memory of the Republic. Delay is dangerous. At any moment an internecine war may break out among us. Wrongs and outrages will not be continuously endured. The people will strike at the laws that inflict them. " This does not look to a change of the law by constitutional means, but to the subversion of the Government and the raising of a tomb to its memory. It is hard to say which war “Coin" is most in favor of-war with England or “internecine war.” The whole argument of the book, so far as it uses argument, is that we need more money, and that free coinage at 16 to 1 will give us more. That is exactly what the other side deny. They say that it would merely displace gold and give us no more money than we had before, but a poorer kind. In his pretended dispute with L. J. Gage, on page 38, "Coin" said that he should "leave the subject of independent free coinage by the United States to the last." Looking anxiously for that, we find it to consist of his assertion that "free coinage by the United States will at once establish a parity between the two metals," meaning a parity at the ratio of 16 to 1. Now all the bimetallists of repute in this country, such as Gen. Francis A. Walker and the late S. Dana Horton, hold the contrary opinion. AND REPUDIATION. If, however, free coinage at 16 to 1 should banish gold from circulation, a way to get it back is pointed out on page 143, viz.: "With silver remonetized and a just and equitable standard of values, we can, if necessary, by act of Congress reduce the number of grains in a gold dollar till it is of the same value as the silver doliar. [Applause.] We can legislate the premium out of gold. [Applause. Who can say that this is not an effective remedy? I pause for a reply." DOWN ON INTERNATIONAL BIMETALLISM. This means passing a law to make fifty cents the equal of a dollar in all cases, which is indeed the aim of the free coinage party generally, although they do not all avow it so frankly. Having got to this point "Coin" spews Gen. Walker, President Andrews. Senator Wolcott and all other international bimetallists out of his mouth saying that until they can answer the question quoted above he will "write upon the character of every international bimetallist the words 'gold monometallist.'" Speaking of Gen. Walker reminds us of another difference between him and "Coin." "Coin" takes for the motto of his book these words: "All money is a medium of exchange, but primary money only is the measure of values." General Walker read a paper at the meeting of the American Economic Association, at Chicago, Sept. 13, 1893 (since published as a pamphlet), entitled "The Value of Money." In this he seeks to prove that prices of commodities are determined by the demand for, and the supply of, the actual coin and notes circulating as money, and not the coin only. His reason for holding this opinion is that: "Bank notes are money. They are distinct and tangible things, which pass out from the bank and have their own separate life and course; which become the property of him in whose hands they are, just as truly as do coins of gold or silver. Like such coins they pass from hand to hand throughout the community, without reference to the character or the credit of the person offering them. Like such coins they are accepted in final discharge of debts and full payment for commodities, without necessary recourse to the issuing bank, except as they may individually become too much worn for further circulation, after performing, it may be a hundred, it may be a thousand, exchanges." For these reasons he maintains that bank notes which circulate as money are, equally with metallic money, factors in determining prices. CONCLUSION. All of "Coin's Financial School" after the picture of the octopus consists of low appeals to Coxey's army, or of unmeaning drivel. It is useless to pursue it farther. The question may be asked how the book came to have so much popularity and such a large circulation. The answer is easy-it is due to the pictures. These, it must be admitted, are very clever, although of unequal merit. Without them not five hundred copies of such a senseless book could have been sold, or given away. But what a gloomy fate would be ours if the destiny of the Republic lay in the hands of any skillful designer of comic almanacs! THE COLUMBUS FORGERY. Since the foregoing pages were written the Indianapolis Journal has come to hand with some further remarks on the Columbus forgery already referred to. It says: 6 "W. H. Harvey, author of Coin's Financial School,' writes to a Chicago paper denying that a certain extract printed on the first page of his book is a forgery, as charged by the Journal. As it appears in the book it is credited to ‘Report United States Monetary Commission of 1878.' Not a word of it appears in that report. Now comes Harvey and says it should have been credited to the report of the commission of 1876. This report, he says, contained the exact language quoted.' This is not true. The report contains most of the language quoted, but not all of it. The pretended quotation, after describing the effects of the reduction in the volume of metallic currency during the dark ages, says: The discovery of the new world by Columbus restored the volume of precious metals. brought with it rising prices.' This is not in the report. The pretended quotation also jumps over eleven lines of the report which go to show that other causes than the reduction of metallic currency may have contributed to the stagnation of the dark ages, and that the introduction of bills of exchange and paper currency certainly contributed to the revival. These eleven lines of the report are omitted because they did not suit the author's purpose, and an entire sentence of his own is substituted. There is no typographical error in this. It is garbling and forgery with intent to deceive." SOUND CURRENCY. PUBLISHED SEMI-MONTHLY BY THE SOUND CURRENCY COMMITTEE OF THE REFORM CLUB. ENTERED AS SECOND-CLASS MATTER AT THE NEW YORK, N. Y., Vol. II., No. 14. MAY 21, 1895. Publication Office, No. 52 William St., New York City. NEW YORK, JUNE 15, 1895. POST-OFFICE "Your committee conceive that it would be superfluous to point out, in detail, the disadvantages which must result to the country from any such general excess of currency as lowers its relative value. The effect of such an augmentation of prices upon all money transactions for time; the unavoidable injury suffered by annuitants, and by creditors of every description, both private and public; the unintended advantage gained by government and all other debtors, are consequences too obvious to require proof, and too repugnant to justice to be left without remedy. By far the most important portion of this effect appears to your Committee to be that which is communicated to the wages of common country labor, the rate of which, it is well known, adapts itself more slowly to the changes which happen in the value of money, than the price of any other species of labor or commodity And it is enough for your Committee to allude to some classes of the public servants, whose pay, if once raised in consequence of a depreciation of money, cannot so conveniently be reduced again to its former rate, even after money shall have recovered its value. The future progress of these inconveniences and evils, if not checked, must at no great distance of time work a practical conviction upon the minds of all those who may still doubt their existence; but even if their progressive increase were less probable than it appears to your Committee, they cannot help expressing an opinion, that the integrity and honor of Parliament are concerned, not to authorize longer than is required by imperious necessity, the continuance in this great commercial country of a system of circulation, in which that natural check or control is absent which maintains the value of money, and by the permanency of that common standard of value, secures the substantial justice and faith of moneyed contracts and obligations between man and man." III. EFFECT OF BANK OF ENGLAND QUASI LEGAL-TENDER 153 IV. CONSEQUENT INFLATION OF CURRENCY........ QUANTITY OF CURRENCY REQUIRED A RELATIVE MATTER. 158 162 163 164 V. CONCLUSIONS.. 166 REPORT FROM THE SELECT COMMITTEE ON THE HIGH PRICE OF GOLD BULLION. Ordered, by the House of Commons, to be printed, 8 June, 1810. THE SELECT COMMITTEE appointed to enquire into the cause of the High Price of Gold Bullion, and to take into consideration the state of the Circulating Medium, and of the Exchanges between Great Britain and Foreign Parts ;-and to report the same, with their Observations thereupon, from time to time, to the House ;-Have, pursuant to the Orders of the House, examined the matters to them referred; and have agreed to the following REPORT: Your Committee proceeded, in the first instance, to ascertain what the price of gold bullion had been, as well as the rates of the foreign exchanges, for some time past; particularly during the last year. Your Committee have found that the price of gold bullion, which, by the regulations of his Majesty's Mint, is 3. 178. 10d. per ounce of standard fineness, was, during the years 1806, 1807, and 1808, as high as 47. in the market. Towards the end of 1808 it began to advance very rapidly, and continued very high during the whole year 1809; the market price of standard gold in bars fluctuating from 47. 98. to 4l. 12d. per oz. The market price at 47. 10s. is about 15 per cent. above the Mint price. The Your Committee have found, that during the three first months of the present year, the price of standard gold in bars remained nearly at the same price as during last year; viz., from 41. 108. to 47. 128. per oz. In the course of the months of March and April, the price of standard gold is quoted but once in Wettenhall's tables; viz., on the 6th of April last, at 41. 68. which is rather more than 10 per cent. above the Mint price. last quotations of the price of gold, which have been given in those tables, are upon the 18th and 22d of May, when Portugal gold in coin is quoted at 47. 118. per oz.: Portugal gold coin is about the same fineness as our standard. It is stated in the same tables, that in the month of March last, the price of new doubloons rose from 47. 78. to 4l. 98. per oz. Spanish gold is from 4 to 4 grains better than standard, making about 48. per oz. difference in value. It appears by the evidence, that the price of foreign gold coin is generally higher than that of bar gold, on account of the former finding a more ready vent in foreign markets. The difference between Spanish and Portugal gold in coin and gold in bars, has of late been about 28. per ounce. Your Committee have also to state, that there is said to be at present a difference of between 38. and 48. per ounce between the price of bar gold which may be sworn off for exportation as being foreign gold, and the price of such bar gold as the dealer will not venture to swear off while the former was about 47. 108. in the market, the latter is said to have been about 4l. 68. On account of these extrinsic differences, occasioned either by the expense of coinage, or by the obstructions of law, the price of standard gold in bars, such as may be exported, is that which it is most material to keep generally in view through the present inquiry. : It appeared to your Committee, that it might be of use, in judging of the cause of this high price of gold bullion, to be informed also of the prices of silver during the same period. The price of standard silver in his Majesty's Mint is 58. 2d. per ounce ; at this standard price, the value of a Spanish dollar is 48. 4d. or, which comes to the same thing, Spanish dollars are, at that standard price, worth 48 114d. per ounce. It is stated in Wettenhall's tables that throughout the year 1809, the price of new dollars fluctuated from 58. 5d. to 58, 7d. per ounce, or from 10 to 13 per cent. above the Mint price of standard silver. In the course of the last month, new dollars have been quoted as high as 5. 8d. per ounce, or more than 15 per cent. above the Mint price. Your Committee have likewise found, that towards the end of the year 1808, the Exchanges with the continent became very unfavorable to this country, and continued still more unfavorable through the whole of 1809, and the three first months of the present year Hamburgh, Amsterdam and Paris, are the principal places with which the Exchanges are stablished at present. During the last six months of 1809, and the first three months of the present year, the Exchanges on Hamburgh and Amsterdam were depressed as low as from 16 to 20 per cent. below par; and that on Paris still lower. The exchanges with Portugal have corresponded with the others; but they are complicated by some circumstances which shall be explained separately. Your Committee find, that in the course of the month of March last, that is, from the 2d of March to the 3d of April, the exchanges with the three places above mentioned |