i.am 8r > . , , ; - * -S * mf m' ; * l Afes
Conservative *
tiou for the army made of Indian corn.
I will refer the matter to the Commis
sary General who will look into the mat
ter. Very Truly Yours ,
R. A. ALGER ,
Secretary of "War.
Hon. .T. Sterling Morton ,
Nebraska City , Neb.
itttroiiT OF TirK THE CONSERVA-
MONJ5TAUY COMTIVE lllUS
this
CONYKNTION.ou Mouetaiy re
form from the hands of Professor J. Laur
ence Laughliu of the Chicago Univer
sity , and the following extract , begin
ning ou page 82 , is submitted as terse ,
sound and instructive :
"There is a clear distinction between
the functions of money as a standard of
value and as a medium of exchange.
While that money which is the standard
of value will always serve also as a med
ium of exchange , yet other forms of cur
rency of inferior market value can in no
sense be a satisfactory standard , and can
bo a suitable medium of exchange only
when the convertibility at par into the
standard money is assured. Any pos
sible currency is , therefore , of one of two
lands. The first land is that which has
been adopted as the standard of value.
The second kind is that which is , with
out reference to its market value as a
commodity , receivable at par , because
convertible at par into the standard
money. Today gold is the only cur
rency of the first land. United States
notes , national bank notes , silver dollars ,
subsidiary silver , and minor coins , are
currency of the second laud. The face
value of the silver dollars , the subsidiary
silver , and the minor coins more or less
largely exceeds their bullion value , and
they differ from the note-issues only in
the fact that the material of which they
are made has some market value as bul
lion. Under modern conditions of busi
ness , purchases , sales , loans , the dis
charge of debts , and even payments of
wages are effected in great part by
drafts , checks , or transfers of credits.
While the work which the money
which is the standard , actually performs
in the exchanges of the country is rela
tively small , yet every one of those ex
changes is based on that standard. If
all the money of the country is conver
tible at par into gold , there may then bo
whatever , and as much , of the repre
sentative forms of currency as the con
venience of the people may require.
"Ou the other hand , if the standard
of value be lowered , there necessarily
follows a loss of public confidence , a les
sened use of credit and of credit forms
of currency , and a consequent diminu
tion of the effectiveness of the currency.
"The gold standard , therefore , does
not mean gold monometalism , and it
necessarily results , not in contraction ,
but in the greatest possible expansion of
the currency within the bounds ot
safety.
"As gold derives no value from any
legal-tender law , nor any value from
at the mint 'the
coinage beyond ascer
tainment that its weight and purity are
what the law requires , ' and the certify
ing by the government's stamp that it
possesses those qualities , it is , and ought
to continue to bo , admitted to free coin
age. On the other hand , silver , nickel ,
and copper should bo coined oiily upon
government account , into coins of lim
ited legal tender quality ; should bo is
sued from the mint only in exchange foi
gold at par ; and should bo re-exchange
able at the Treasury in convenient mul
tiples for gold coin at par. Under this
system there could bo no arbitrary con
traction or expansion of the coin cur
rency , nor any tampering with the
standard of value , and the people would
then carry to their credit in the ledger
of the Treasury Department the profits
upon the coinage of silver , nickel , and
copper.
"Many of our fellow citizens have
hoped in all sincerity that the problem
of the standard would be solved by in
ternational bimetallism. An earnest
effort has been made to realize that
hope , but it must now bo abandoned.
The only alternatives , therefore , are the
continued maintenance of the existing
gold standard , or the adoption of the
silver standard. If the latter alterna
tive be taken , the obligations of the
United States , of the states , of all .mu
nicipalities , of all private corporations ,
and of all individuals , the receipts of
income from every source , the proceeds
of policies of insurance , the deposits in
banks and saving funds , and the wages
of labor , will then bo payable in a de
based and depreciated currency ; and
individual and corporate bankruptcy ,
and , worst of all , national dishonor , will
follow. If the former alternative be
taken , and the necessary means be
adopted to secure the stability of the
gold standard , the credit of the country
will be established ; the national debt
can be refunded at lower interest rates ;
the surplus capital of 'the world will
come here to find profitable investment ;
and our country will enjoy the prosper-
pority that follows a currency system
based upon a stable standard of value.
"The means necessary to establish
aud preserve popular confidence in the
continued maintenance of the gold stan
dard are :
1. "An explicit legislative definition
of the gold standard , and a pledge that
it will bo maintained.
2. "A requirement that all obliga
tions , public and private , unless other
wise stipulated in the contract , shall be
payable in conformity with that stand
ard.
8. "The adoption of a plan for the
gradual retirement of the oxitstanding
note-issues of the government.
"As the gold deposited for certificates
cannot be used by the government , and
as the issue of gold certificates is of no
advantage to the government or to the
people , there does not seem to be any
reason for their continued issue. "
WHAT PKOTECTIONISTS DKSIKK
FOR IIAIL,11OAI , > S IN THE
UNITKU STATES.
( Extract from Now York Sun , July 10 , 1808. )
The American Railroads against the
Canadian Pacific.
The case to be heard by the Intei
State Commerce Commission. Privi
leges enjoyed by the Canadian company
denied to American roads. A war that
has degenerated into one of destruction.
WASHINGTON , July 15. The Inter
State Commerce Commissioners have
set the case of the American
Railroads against the Canadian Pa
cific for a hearing at Chicago
beginning August 1 at 10 oclock
This action is taken in response to the
representations made to the commission
ers by the representatives of the West
ern Passenger associations and others , to
whom an informal hearing was grantee
on Wednesday. The commissioners
n-ofix their order notifying each of the
railroads interested of the hearing with
the following :
WHEREAS , It has came to the atten-
ion of the commission that there exists
at the present time a contest in passenger
rates between the Canadian Pacific
Railway company , a corporation of the
Dominion of Canada , upon the one
tiand , and certain American lines ana
; heir connections , including the Grand
Trunk Railway company of Canada ,
upon the other , and
WHEREAS , It is charged by the Amer
ican lines that the Canadian Pacific
Railway company has been , and still is ,
in open violation of the act to regulate
commerce , making unreasonably low
rates between various points in the
United States , not as a measure of legiti
mate competition , but as a means of re
taliation for the purpose of exacting
certain unreasonable demands upon its
part , and that such illegal conduct on
the part of the Canadian Pacific Rail way
mil result , if persisted in , in the utter
demoralization of passenger rates over a
largo portion of the United States and
in incalculable damage to the interests
of the American lines , all of which is
either domed or justified by said Can
adian Pacific Railway company ; and
WHERE AS'It scorns advisable that the
commission should be fully informed of
the whole situation in respect to pas
senger rates as induced or affected by
the competition of the Canadian Pacific
Railway , as above set forth , with a view
to determining what , if any , relief caner
or ought to be applied or suggested , or
what action should bo taken in the
premises. "
An unofficial statement of the conten
tion of the American roads is published ,
with the order of the commissioners. It
is as follows :
"The general policy of the United
States government for the past genera
tion has been that of protection to its
industries , transportation as well as
manufacturingniining and agricultural.
To aid its shipping industries , it abso
lutely prohibited any foreign vessel
from participating in the transportation
of traffic from one port of the United
States to another port in the United
States. It frequently occurs that a
foreign ship comes into the port of
New York with a cargo , discharges it ,
and then goes to New Orleans fora
cargo of cotton for Liverpool. In that
case it goes empty to New Orleans. In
deed , it incurs expenses to take on bal
last to enable it to get to New Orleans.
Now , if it could participate in carrying
our traffic , it would cheerfully take a
cargo for Now Orleans at a nominal rate ,
but the merchant shipping to Now Or
leans cannot avail liimself of the cheap
rates which the foreign vessel could af
ford , but pays the American shipowner
instead whatever the service is worth.
"An exception to this policy of pro
tecting our own industries prevails in
jpp2
, 'BA . .ft. ,
