The President: A Novel

by Alfred Henry Lewis

"Wherein would lie the harm? So that it did not disturb the comparative prices of soap and pork and sugar and flour and lumber and on through the list of a world's commodities—and it would not—no one would experience either jolt or squeeze. With wheat at a dollar a bushel, a reduction to ten cents a bushel would work no injury if at the same time every other commodity in its price fell ninety per cent. To merely multiply the 'price' of gold, a metal which when it isn't money is jewelry, would cut no more important figure in the economy of life than would the making of one thousand marks upon a thermometer where now we make one hundred. Suppose, instead of one hundred degrees, we scratched off one thousand degrees on a thermometer in the same space: would it make the weather any hotter? I grant you a cautious business manager would not walk in among the gold-sellers and purchase ten billion dollars' worth of gold in a day; and for the same reason that a cautious cowboy wouldn't ride in among a bunch of cattle and flap a blanket. Not because there lurks inherent peril in so doing, but for that in the timid ignorance of the herd it would produce a stampede."

"But don't you see," objected Senator Coot, who was learned in the cant of currency and believed it, "don't you see that what you propose, by putting up the price of gold and putting down the price of everything else, would multiply riches in the hands of the creditor class? Wouldn't it work injustice to the debtors of the land?"

"Without pausing to guess," said Mr. Bayard, "for that is all one might do, whether the extravagant coinage of gold would promote its 'price,' I will submit that such contention should be disregarded. It is too general, and too incessant. If such were permitted the rank of argument, it would trip up every tariff, every appropriation, every governmental thing.

"Also, one must not put a too narrow limit upon the term 'creditor class.' Every man with a dollar in his pocket, or who owns a farm or a horse or a bolt of cloth or one hundred bushels of wheat, belongs to the extent of that dollar or farm or horse or bolt of cloth or one hundred bushels of wheat to the creditor class. The world is his debtor, and he has it in pawn and pledge to him for the value of that dollar or farm or horse or cloth or wheat. Now, a tariff law can be and frequently is framed so as to lift or lower the 'prices' of all or any of these. If your argument be good it should be just as potent to prevent a tariff law that augments riches in one hand or detracts from riches in another, as to prevent a coinage law that does the same.

"Properly speaking, there can be no separation of mankind into creditor and debtor classes, since, as we have seen, every man with a dollar's worth of property is in the creditor class to the extent of that dollar, while the world is in the debtor class and owes him therefor. There can be but two classes: those who own something, and those who don't. There lies the sole natural division; and not a law is framed, whether it be for a tariff or an appropriation or an army or a navy or a coinage or a bond issue or what you will, that does not, in lesser or greater degree, add to or take from the riches of some man or men. No government can go its clumsy necessary way without stepping on somebody's toes, and if one cannot have a currency because to have it will help this individual or hurt that one, by the same token one cannot have a government at all.

"However," concluded Mr. Bayard, "I think your talked-of advance in a gold 'price' born of coined billions might prove in the test to be imaginary rather than real. There has been ever a gold-ghost to frighten folk. There was once a time when men talked of resuming specie payment, and the public hung away from it, fearful and trembling, like an elephant about to cross a bridge. Horace Greeley cried, 'The way to resume is to resume!' and every dollar-dullard called him crazy. And yet, as the simple sequel demonstrated, the elephant need not have shivered, the bridge was wholly safe, and Horace Greeley was right."

Senator Gruff, whom Mr. Gwynn had privately requested to assume control so far as speeches and toasts and sentiments to be expressed were involved, now held forth in terms of flowery compliment concerning Mr. Bayard. He thanked that able gentleman for his theory of finance. Senator Gruff would not discuss its soundness; this was not the time nor yet the place. He would say, however, that it was unique and interesting.

Referring to what Mr. Bayard had called our "crazy-patch" system of currency, he, Senator Gruff, was willing to make this statement. The greenbacks, as all knew, were exempt from taxation. To discover how far greenbacks and their exemption had been made to affect the whole taxes of the several States, he, Senator Gruff, the year before had addressed a letter to every county tax-gatherer in the country. He had asked each to state the amount of greenbacks returned that year for his particular county as exempt.

"I received a reply," said Senator Gruff, "from every county auditor between Eastport and San Diego, Vancouver's and the Florida Keys. The aggregate of greenbacks returned exempt for that one year was over thirteen billions of dollars, while, as we know, the entire amount of greenbacks extant in the country is but a shadow above two hundred and forty millions. I shall make no comment on the miracle, and cite it only as an incidental expression of one element of our money system."

Senator Gruff, continuing, recurred to the pushing forward of Senator Hanway as a Presidential candidate. It was, while unexpected by him, a movement so full of righteous politics that he confessed heartfelt gratification thereat. Senator Gruff would suggest that one and only one gentleman among those present be selected to furnish the story to the press.