The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-08-16
The silver Conference Failure.


| 1t has been conceded, even by the pro
nounced silver lovers, that no such thins
| as a double standard can be maintained
unless by the common consent of all thu
principal commercial nations of the world
/ This is step i'll advance of the crudef
idea, advanced by some in the early days
of the discussion, that all that was neces
| sary to establish the double standard in
! the United States was a law to that effect.
| 1t was shown to them that when the law
demonetizing silver was passed, there
was no silver money in the country to
demonetize. The silver dollar was worth
more than the gold dollar, and when one
could be found it either went out of the
country or found its way to the melting
pot, where it was worth more than a dol
lar The cheaper metal, gold, had driven
the dear metal silver, out of existence as
money. The small change began to follow
the silver dollar when the process YVES
only checked by reducing the amount of
metal in the small coins, so that there were
some forty grains less of silver in a dollar S
worth of change than in a dollar coin In
view of this experience (Which has been
the experience of all countries and ages)
it was successfully contended that no
amount of law could keep two metals in
circulation The operation now would be
reversed if there was free coinage of
silver, and the gold would go out, since
the change in values on account of the
varied cost of production has made silver
cheaper than gold.
The idea now of the bimetallists is, that
if they can induce the other nations to
unite with them in forming the double
standard, the silver and gold will remain
in circulation, because there will be no
fort Ia al TO fn
this were sound reasoning it might settle
the question, but it is not. The cost of
production, in the long run, gauges the
value of the thing produced. In the term
''cost of production" is included all values
which enter into the placing of the product
on the market. 1t now costs about eighty
five cents to place silver dollar in circu
lation. 1t costs one hundred cents to
place a gold dollar in circulation. If the
law viii make eighty-fve cents worth Of
labor and other elements OF the cost Of pro-
duction pay dollars worth of debts, who
will take the trouble of expanding one
hundred cents to do it A? 1t is claimed in
opposition to this view that the value of
silver and gold mines will approximate
each other under the effect of the law, and
thus equalize the cost of production by
the demand, but there never
was greater IdliaCy. ne fe1dIlSe IeSSai
values of gold and silver remaining con-
slant, their real relative values must vary
in accordance with their relative album
dance and ease of procurement. Thorough
students of political economy know
that the price of silver and gold can no
more be sustained in a constant relation
than can the prices of corn and wheat. The
combined political power of the world can
no more effect this than it can make two
and two equal five. The attempt is utter
y unscientifc. For time such a law |
night present the semblance of practicable |
ty. The demands for both metals might |
or season keep them at1oat. but the in
evitable result would only be deferred. The |
metals would find their respective levels,
ike oil and water, and one or the other
would still be the standard. There never
las been permanent double standard in
he history of the world, and it is safe to
ay that there never will beat least, not
,efore the nations combine in the use of
Iifferent sized yardsticks. The monetary
conference was discussion over the inn
possible.