Telegram-herald., 1890-02-20

rreveet rZ~LEer al Wne sAa1 ssy fEaf ? 50
tss usxl1ala y e o0oloo ua1t1 ben So
0e@ss1 tn@t s-VsE sssl3 -.at ps -oa at l.af h
sa-1 ~ -1e rsllo q e -
* t1s prod1cz-la ef lSSS l2s Unils4 States
toCk f1r sas1Ase s-S Qe9oQ. IE2-a ta-4 s-a-ol-
te4 ot,ler ooa1-rles o. % u bt1 as tee
consumption - tae Caits1 St@tcs have tAs
same e1ees o1 E1s p-tce of silrer - tas ea--
s-lpz-e1 90 s ikl 2-.rEut - La4-a Qf as oll7f
co-ntryi Aa4 tss Uaited states Has nrt
oQ-ne1 taz. Soll9 soalc the prios A4Fe 30.
Gzs--sd o. sEe s-11s ieFslf o1 she olteg la1t.
sagposs sac Irai.-3 States ha1 cat1se s$ee.
90 Las .oa1 - - l- 11 Is .l -9t clssl s4-s .oss
NolL- have n5en iel tor 81 os1rlft.s 4-a
thss t1e Prlos ~c--1 asFT r-sen un1rr tae il
creased cemAa1f Is u lat clear enough thaf
tas pGrcASse ~ sS.-DU1s E-9nfh ceuld uuf
l9Dg 40 *. production reEastn-zs a. so~ wlfh.
oct carrying silver - Per wiZn g'lc'
Tns 81 Loais eo1sel.lon rs ssAet ttzt thts
experiment. w-ilh Its pr1ss2l law authorizes.
he tired A. s1c1tiau q sa40ooo,o u oar I2on-
ey volume us year stI not D. eloGEh 70 III
Tie VOID caused D. lie Cancellation o. bauk
Eotes snG ssPgly TIE reels of a. Increasing
population. aac nothing shori q this wi stay
the down ssgc tendency o. prizes
TsH FHEK COINAGE oT sILNEa
The svers.e sdyoc&te of sclt racnozuet-lasIu
shriuks % Lsrnor - Tie suggestion % restoring
free coinage 70 SILVER snd cries cheap money -
eighty oeut dollars" snd declares that ee
knows = vii Immediately expel gold Sno bring
CT dire cal4n.iIiss
Tais Is what htr. Cleveland predicted IL ISsi
would take place 4 the coinage % teoo0po
month was not stopped. zsd II What others
have continually predicted sinoe ls.6 And nov
they ssy, although The coinage % - lu0uo has
noty yss expelled gold, II teaA erps. II. no1With
standing the fact shat since The act q lsIe was
passed requiring the coinage ~ E,oOoroo
month this country has gained sS92oD,On q
gold.
But let US examine the foundations Of these
predictions. Why las not gold been expelled'
Simply because Tie coinage ~ . 10000
month was noi suca al addition % our money
volume as 20 raise prices above The gold, or IN.
ternAtional level o. prices.
WY has our STOCK of gold inereAsect Simply
because the cottage Ct 5000 900 month was
not q su-rcient addition 10 our money volume
% take Lhe place of bank notes retired and sup
ply the needs OF 40 Increasing population, and
consequently gold came here 20 preserve the
equilibrium o' prices. II there Is any one prin'
ciple IN economic science accepted by al econ
ornists IL is this All predictions that the
coinage Of t2cpUO a month would eIpel our
gold have been made In ignorance OF disregard
OF The plainest principles Of economtc science.
Mr.. Cleveland. IN his oclehrSed letter went
further and predicted that at one aad The same
time gold would 60 out Of the country, the vol
ume Of money would be reduced 10 the siref
and paper. mat II Nflil ln-0 GcrTrtiulf 70
the level OF silver bullion. and stTangest II AL
as money deprecated prices would far. 90
course these predictions have 81 failed. as al
predictions based on such calculations must.
When win the coinage OF silver begin % drive
out goldf Not until the coinage is slrici ,,t-
First. To take the place OF bank rotcs re.
tired
Second. To supply tho needs q Increased
population and wealth, which, 20 maintain the
present relation Of money voluncto population,
would rot be less than 100000 year.
Third To supply the requirements OF in
creased industries, which would be sure q fol
low stability OF prices.
Tho cancellation Of bank notes IN 1882
amounted 10 S4l OOo co ard viii probably rot 10
much less this year. THIS. addec 20 inc $l5.-
10000 needed for Increase Of population. and
we have sSS nOpOO tho quantity actually
needed 10 IA Iiatcil stability of Di9n>v yoi,t7e
and nothing else will arrest Tho fall of prices.
Even should some part OF the bank notes sur
rendered be taken up by new hanks. hardly less
than t75OO1Opo will b" required 20 keep mp the
money volume I mil this void, 10 speak,
made by the cancellation Of banl, notes and in
crcasing population, IS filled, there can DO 10
expulsion Of gold.
tiresham's law is law of displacement ard
nothing else.
Prices must be raised above the information
al level OF prices before a fow a gold. either
way, sets IN.
FRET COINAGE or SILVER
The main question has now been reached.
what viii be tho effect OF the free coinage oi
silver,
First II Will be admitted or all sides that
with free coinage the dinerenSe in the value Of
coined and ulcoined silver viii immediately
disappear For whom A cap have his silver
made icto money free Of charge at tho ratio Of
lGtol. he viii let no ono else have Z NJ q less
rae. How Iauch silver, then, under free coin
a-c. would go 20 our mr.S and be added 70 our
volume % money!
j. vcs agreed bT tho roval commission that
thcre are 20 great stocks OF silver in tho world
% drov from. II viii ho agreed too. by 81
who have studied the question al al that tho
co!ncl silver al Europe being al Tho ratio q
IL, fo T. VIII stay where L Is 81 par With gold
81 thot ratio rather than come here where is 10
! wouli De the par of gold We may therefore
l'r~it cur inquiry 70 The annual production from
To mines
Tho production 81 1855 is stated. bv The Di
rector Of the Min. as slsocp1OO) coming value
Whether this is excessive or not, re viii not
sep 10 consider. Eaw. whore ID This produ~
ton of 1855 gce How was u c9usuro6s The
following table shows its distribution:
India took ....... .................. 100000
The United states ior coinar~ pur-
poses .-.--- )--.-... - ehl-9
I1ran ............ ............... 10 200 800
Mexico 1T cast ........... ...... 10p1 tgp
Asia ana Afri-a .... ...- ..--.....- l.olo ~
E-~opc and America io1 q. iIia-y
c1.aa-c .....-................. ~ % oo0
Tot71 ........... Sle9upG11
I.eatir- fer the arts .............. - % 90
Total ..... si2Jll0D9
And 81 cooo1o for he arts isa .rlail sE9a
arce.
Nov with free coinage 4. tAc United States,
What change would take place fhe t.st-.5u
-..Ff &c. fr. e.
s shoull te remembered that silver coz titutes
fhr sole none ~ tho ves' majority of r~s~ttrd
All SILVER not uscd In The arts IS now coined
sOrrewhc-e. India at-orbs az averoEe az about
a. OOopoO year ard the capacity - TIE vest
population ~ India 20 absorb silver IS net Ike
II 70 be sbated. Tho consUE1pt on 10 The arts
would scarcely be lessened- Tic needs tor SUD
sidisry co.nsge WI lot diminish.
some Jess might 20 to As'a. although 4 IS
fir~-llf 70 ser how no -esf--aficr - fhe ratio