from a debasement or enhancement of the value of the coined dollar.
If the conception of money as a commodity of convenient exchange should altogether supplant that of an artificial standard of value made by Congress out of its own will, the function of the Government would manifestly be reduced to certifying the weight and quality of precious metal in its coins. If it undertook nothing more than this (except the prohibition of coins not issued by itself), there would be nothing to prevent the free coinage of gold and silver, though a slight charge for the expense of coinage would be proper. And with practically free coinage for both metals it is submitted that the varying needs of the country for currency would be more perfectly met than in any other way, because with every "squeeze" in the money market bullion could at once be converted into coin, and vice versa. This, indeed, is already provided by section 3518 of the Revised Statutes, which says that the owner of gold or silver may have the same cast into bars with a stamp designating the weight and fineness thereof; but this statute, though no doubt of great use in facilitating the international exchange of bullion, is without the benefit it might have because the bars are not issued in sizes convenient for currency. It is the word "dollar" in existing contracts of indebtedness that prevents this; and if by such action as that above mentioned the word dollar shall be established as the present gold dollar, there would be nothing to prevent a healthy expansion of the currency by the free coinage of silver and the issuance of certificates for the same in any amount desired.
It would be an unspeakable blessing to have the currency question removed from the domain of politics. Questions of so complex a character are precisely those which the people are most ill qualified to decide. It is the interest of all that as few questions as possible having great financial importance should be decided by the political power; for therein lies the source of the corruption of the Government, the oppression of the people, the uncertainty of business, the possibility of panics, a stimulus of class prejudice and class-greed, and the obstruction of legitimate public business.
Mr. Warner[1]—Corporation after corporation, savings-bank after savings-bank, life-insurance company after life-insurance company, have, since the passage of this last act, felt, not that they wanted anything to happen, but compelled, out of due regard for those whose money they were trustees for, to require that in all reinvestments and loans there shall be put a gold clause. That has actually taken place to such an extent that I believe that,
- ↑ Hon. John De Witt Warner, before Congressional Committee, February 16, 1891.
