Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1888-03-23

"A rilIlukdgt III NHih'o "a 'f'A ~ -
cent. paralysis Of business, hard times
and general depression throughout the
United States and Europe.
We are c0oly Informed by the bond
holders that this shrinkage in prices Is
beneficial that as values decline less
money is needed because there l. loss
value to represent. The following from
our author, Mr.. Wells, is cool and re.
freshing. In the December number OF
the Popular Science Monthly, he says
page l7C):
"Fnrtherm0re, an average decrease OF al
least 30 per cent. in the prices Of the com.
modities that represent the great bulk OF
the worlds production and consumption,
comparing the data Of lesj-'e6 with those
of ls67-'77, has in itsefbeen equivalent TO
largely OF entirely supplementiDg any in
creased demand for the use Of silver aud
gold as money consequent upon any in
crease in the volume Of the worlds bust
ness during the same PERIOD"
agree with Mr.. Wells that the value
OF property las shrunk, and will continue
tOshrink as lOngas contraction continues.
and that money will bay more property
the less money there is IN circulation
This is cOnso'ing doctrine for the bond
h0'der and creditor. His demand does
not shrink; It simply requires more prop
crty TO satisfy it. | commend this doc
trlne Of the bond-holding. go'd-standard
aristocracy TO the farmers Of the Missi'
sippi Valley. and ask them IL they de
sire wheat and cotton to further dec inc
Ia price TO correspond to a shrinking VOL
lme Of currency II a further reduction
IN the price Of farm products will AID them
to remove from their homes twelve hnn-
dred millions Of mortgages II may ena-
bic the creditor 10 get their farms for a
small amount Of money and be very graf
Tying TO the usnrer. Bnt what will be-
come Of the farmer and bis family
We have already seen that the annual
production Of gold and silver from l-75 TO
the present time is over two hundred mil
lions, and that since the war on silver he
gan, In 1913, aggregate production Of the
two metals has reached the enormous sum
OF thirty-two hundred millions. If the
production OF the precons metals has not
tailed why has prosperity been checked
and enterprise paraly zed ? Because silver
has been domonetized excluded from the
mints Of the United States and Europe
and driven to Asia for a market. Oh the
sixteen hundred millions Of silver pro-
duced since 1873 only two hundred and
eighty millions has been coined in the
United States, and not exceeding two hun
dred and twenty millions OF legal-tender
silver coined elsewhere outside Of Asia,
leaving the enormous sum of about eleven
huOdrcd millions TO find a market in the
arts or be- banislisd TO Asia never to return.
If one-half Of the production of the pre-
cious metals had been stopped by natural
causes tho world would have attributed
the evils which now exist 10 failure in
the supply of metallic money. but one
half of the supply having been cut of
by legislation for the benefit of bond
holders and money lenders. an influential
and powerful class are flooding the world
with literature TO deceive the people and
induce them to tamely submit to robbery
OF contraction under the name Of gold
standard. Suppose the act OF 1878, re-
curing tho coinage of silver, had never
been passed, and the two hundred and
eighty millions Of silver coin resulting
therefrOm did not exist. what would be
the present condition Of the finances Of
this cOuntryl What is the prospect II
the gold standard could be maintained
The production of gold Is diminishing
while population ia increasing. From 1870
to 1873 the average annual product Of
gold was oae hundred and thirteen mil
lions. For the last five years, according
to the reports Of the Director of the Mint,
the average annual product Of that metal
has been less than one hundred millions,
and doubt very much, it the actual
facts were known, whether il would ex-
coed ninety millions.
The volume Of gold must necessarily
shrink. The world has been explored for
gold. Gold IN Its free state appears on the
surface and in the beds Of streams. Since
the discoveries in Australia and California
the whole world has been explored, and
new placer mines can not be expected to
be discovered to Gny considerable extent
0ne-third Of the product Of gold is found
in combination with silver. When the
silver mines are stopped, as they will be II
we cease 10 use silver ss money, there will
be an enormous decrease in the production
Of gold. Still the creditor class insist that
we mnst adhere TO gold, notwithstanding
the shrinkage Of production n0twith-
standing the stagnation Of business and
impending bankruptcy which Oyershadows
the land.
The only reason given for using either
metal generally accepted Is for the pur-
pose offxng limitation upon the amount
of money that shall circulate among the
people. The Two metals were used as such
limitation Of quantity for more than two
thousand years prior TO 1875. The charge
was that Governments could not be trust
ed to fix the amount of tho circulation.
But If governments cOuld not be trusted
to fix the limitation upon the circulating
medium, and the experience Of two thou
sand years has indicated a necessity to use
both gold and silver not only as money,
but as a lin tatiOn upon the amount of
money in circulation, how can such gov
ernmeuts be now trusted 10 discard either
one OF the other Of the precious metals az
money and thus change the limitation at
pleasure If governments are after all to
say how much money shall be in clrcula-
ton by dispensing with one or the other
of the precious metals at pleasure, why
not discard them both and fix some other
standard II the standard can be changed
in the United States without debate it is
absurd 10 talk of metallic basis.
cannot close without referring to the
most atrocious and insulting argument |
used by the bondnolding aristocracy, which I.
is that the fall in silver, as compared with /
gold, was produced by oyerproduction of /
the former metal. The fact that it was
legislation and not production that pro-
duced this calamity is evidenced by the
fact that silver did not fall until it was
excluded from the minis of the United
States and Europe. although its produc-
tiou. as compared with that Of gold, was
less when the two metals parted company
in 1876 than at many former Periods
From 1900 to 1916 the aggregate produce
ton Of the two metals was about 20 per
cent. silver aud 30 per cent. gold. From
1916 to 1850 their production was about
Equal. From 1850 to 1875 the aggregate
production was about 10 per cent. of gold
md 80 per cent. of silver
For two hundred years previous to 1875
he two metals never parted company, so
hat II ounces Of silver would buy an
,unce OF gold, or that an ounce Of gold
would buy 10 ounces Of silver. The aver
Ige ratio between the two metals was
stationary at l5i to |. Since
57j the product of the two metals has
,een about equal. This shows that they
,arted company by legislation aud not by
PRODUCTION.
Why may not the United States have an
financial policyi The repre-
entatiyes of the bondholders toll rs it is
because the restoration Of sill
er TO its place as money by the United
tates alone would overwhelm us with an {
valanche of silver. answer that before
hat avalanche can come there must be
ouroe of supply somewhere to produce 1t.
here is no accumulation Of silver bullion
a either Europe or America. Five million
unces cannot be found in both countries. ,
he efforts OF the rulers Of the mOneyed
ristocracy Of Europe and America to to-
ally demonetize silver has 80 intiIgidated
he purchasers of silver bullion that they
are not lot ii accumulate on their hands
single hour The avalanche cannot,
therefore,. come from an accumulation of
ul,ion, No silver has ever come or ever {