"And perhaps," remarked Senator Gruff, "that eminent authority on markets, and therefore upon finance, will favor us with his views on money. I do not hesitate," concluded Senator Gruff, turning to Mr. Bayard, "to cast you into the breach, because, of all who are here, you are the one best qualified and, I might add, least afraid to be heard. You have no constituents to be either shocked at your opinions or to punish their expression."
Senator Coot's curiosity touching Senator Hanway's money position, a fatal curiosity that had it not been smothered might have spread, was overwhelmed in a general desire to hear Mr. Bayard. The great speculator was known to every statesman about the table, and the whisper of conversation became hushed.
"As said the gentleman who has so honored me,"—here Mr. Bayard bowed to Senator Gruff, who complimented him by lifting his glass,—"there are no reasons why I should not give you my beliefs of money. I will tell you what I would and would not do for a currency, if I were business manager of a country. I would not coin silver money, because the low intrinsic value of such currency would make it a cumbrous one. I would not coin both silver and gold, because of the impossibility of maintaining an equality of values between the two coins. I would coin gold and nothing but gold, because it offers those qualities, important above others in a money metal, of high value and high durability."
"But is there gold enough to furnish all the money required?" asked Senator Coot, who was nervously interested.
"For centuries," replied Mr. Bayard, who began to feel a warmer interest than he had in any situation or any topic for over thirty years, "for centuries production has been filling the annual lap of the world with millions upon millions of gold. No part of it has been lost, none destroyed. For every possible appropriation there exists a plenty, even a plethora, of gold. And let me say this: there is a deal of claptrap talked and written and printed and practiced concerning this business of a currency, a subject which when given a right survey presents no difficulty. Mankind has been taught that in the essence of things fiscal your question of currency is as intricate and involved as was the labyrinth of Minos. And then, to add ill-doing to ill-teaching, our own crazy-patch system of finance has been in every one of its patches cut and basted and stitched with an interest of politics or of private gain to guide the shears and needle of what money-tailor was at work. A country, if it would, could have a circulating medium, and all coined yellow gold, of two hundred dollars, or five hundred dollars, or one thousand dollars per capita for population, and, beyond the expense of the mint, without costing that country a shilling. One, being business manager of the nation, as fast as the mints would work could pour forth an unbroken stream of gold money, half-eagles, eagles, and double eagles, to what breadth and depth for a whole circulation one would, and never spend a shilling beyond the working of the mints.
"Observe, now; as a nation we have a business manager. He holds in his fingers five twenty-dollar gold pieces. He buys one hundred dollars' worth of gold bullion with them. The public, if it would, might buy gold as freely as does any private individual. Our business manager gets the bullion, while the other, a gold miner perhaps, takes the gold coin. Then our business manager stamps the bullion he has bought—one hundred dollars' worth—into five new twenty-dollar gold pieces.
"With these in his palm he is ready for another bargain with the gold miner. Again the miner gets the gold pieces, and again our business manager gets one hundred dollars' worth of yellow bullion. This he coins; and being thereby re-equipped with five more new twenty-dollar pieces he returns to the experiment.
"This barter and this coinage might go on while a grain of the world's gold remained uncoined. At the finish, our business manager would have only one hundred yellow dollars in his fist; but there would be billions coined and stamped and in circulation. And the country would be neither in nor out a dollar. I am talking of coinage, not taxation, remember.
"Once in circulation the law would protect the money from being clipped or mutilated or melted down. Once money, always money, and he who alters its money status we lock up as a felon. There is no legal reason and no moral reason and no market reason to militate against what I have outlined as a policy. Finance as a science is simpler than the science of soap-boiling, although the money-changers in the temple for their own selfish advantage prefer you to think otherwise."
"Your wholesale consumption of gold," interrupted Senator Coot, "would raise the price of gold beyond measure."