The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1890-02-26

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II the intention had been to make debts Der.
Posaal ana to paralyze industry b. IN act OF
Unparalleled and never-endin9 OpoliAtion NO
more sinister scheme could have been devised
Ine change In the measure Of values by the
demonstration Of silver came, however, In sucS
m impenetrable disguise that few foresaw its
consequences. But there were those who did
sea 1t ana who predicted with unerring sccu
facy the consequences that would how from It
Among these were Wolowski, Laveleye and
Dtsraeh, whose predictions have been often
quoted few In this country, also early saw
and protested against the wrong Of demonetf
cation. How long this great wrong shall 70 I'M.
righted Let the people say.
THE FALL IN TIE PRICE OF SILVER
Thus lar We have referred only to the fall OF
prices and the rise Of gold, which is really but
| the statement OF one and the same economic
TACT. The fall IN the price Of silver, IS ex-
pressed in gold, Is also but another statement
| OF the same thing Gold has risen With refer
| ence TO silver and commodities Silver and
commodities have fallen with reference to gold
But on comparing silver with commodities We
sec that there has been no marked separation
between them. Uncoined silver win buy IS
| much food and more Of merchxndise nov than
Il
examination Of any table Of prices will show
that the general range Of prices has been all
along 1t about the level Of silver bullion The
relation OF wheat, cotton and other products of
India remain substantially 1T the Same level 1t
which they stood before silver demonstration
Silver, therefore, Notwithstanding its demonet-
ixafiou BY Western nations, has proved the
more stable Of the two metals and the steadiest
measure Of the value of commodities,
Acr D M
A MONTH.
We hear constantly that the purchase Of a.
10000 worth Of silver q month has not main
tained the price Of silver, and often the claim IS
made that It has had no effect In maintaining
the price Of silver. 1t is quite trae that the
purchase Of q 900 900 Of silver month has not
kept theprices up to the advancing level Of gold,
but who Will contend that the purchase Of ESQ.,
100000 Of silver since 1873 has not operated to
prevent further fallf Who shall say that had
the maximum Of 100000 q month been pur-
chased, that silver would not be now at par with
gold, 1t tho ratio Of IS to1.
OF tho production Of 1883 the United States
took for coinage ta2, 10000, India took SS50OQ
600, other countries q, 100000. Did not the
consumption by the United States have the
same effect on the price Of silver As the con-
sumption Of . like amount by India or any other
countryi And If the United States had not
coined 1900 would the price have re-
manned at the same level? On the other hand,
suppose the United States had coined S64 OO0-
600 instead Of &S2 CO., is 1t not clear that less
would have been left for other countries and
that the price would have risen under the in
creased demand: Is it not clear enough that
the purchase Of 100000 q month could not
long 60 on, production remaining as now, with
out carrying silver to par with goldi
The ST. Louis convention has asked that this
experiment, which the present law authorizes,
be tried. An addition Of $64, 10000 to our mon.
ey volume this year will not be enough to fill
the void caused by the cancellation Of bank
notes and supply the needs Of an increasing
population, and nothing short of this will stay
the downward tendency Of prices.
THE FREE COINAGE OF SILVER
The average advocate Of gold recommendation
shrinks in terror at the suggestion OF restoring
free coinage to silver, and cries "cheap money!
"eightycent dollars!' and declares that he
knows It viii Immediately expel gold and bring
on dire calamities.
This Is what Mr.. Cleveland predicted in 1884
would take place If the coinage of 100000 o
have continually predicted since 1873 And now
they say, although the coinage Of g., 100000 has
not yet expelled gold, It rM tIpsl it, notwith-
standing the fact that since the act Of 1873 was
passed requiring the coinage Of 5000 900 q
month, this country has gained oc02 10000 of
gold.
But let Us examine the foundations Of these
predictions. Why has not gold been expelled!
Simply because the coinage Of 100000 .
month was not such an addition to our money
volume as to raise prices above the gold, or in.
ternational level Of prices.
Why has our stock Of ldincreasedf Simply
because the coinage Of e, 10000 . month was
not SUFFICIENT addition to our money volume
to take the place of bank notes retired and sup
ply the needs Of An increasing population, and
consequently gold came here to preserve the
equilibrium Of prices. II there is any one prin-
ciple In economic science accepted by all econ
omists, it is this. All predictions that the
coinage Of 100000 Q month would expel our
gold have been made In ignorance or disregard
Of the plainest principles Of economic science
Mr.. Cleveland, In his celebrated letter, went
further and predicted that at one and tho Same.
time gold would 60 out Of the country, the vol
une Of money would be reduced to the silver
and paper, that it would then depreciate to
the Lowell Of silver bullion, and, strangest Of ALL
- money deprecated prices would fall OF
course these predictions have all failed Is al
predictions based on such calculations must.
When will the coinage Of silver begin to drive
out goldf Not until the coinage is sufficient
First. To take the place Of bank notes re-
tired.
Second To supply the needs Of increased
pOpOlatlOo anu wealth., WHICH, 10 m81nt8ln the
present relation Of money volume to population,
would not be less than Is, 100000 . year.
Third To supply the requirements Of In
creased industries, which would be sure to fol-
low stability Of prices.
The cancellation Of bank notes in 1880
amounted to al, 600 900 and win probably not be
much less this year. This, added to the ea5.-
100000 needed for increase Of population and
We have S86 10000 as the quantity actually
needed to m Twain liability Of money vo!wnss,
and nothing else will arrest the fall of prices.
Even should some part Of the bank notes sur
rendered be taken up by new banks, hardly less
than S73O00000 will be required to keep up the
money volume. Until this void, so to speak,
made by the cancellation Of bank notes and In.
creasing population, Is filled, there can be no
expulsion Of gold
Gresham's law is . law Of displacement and
nothing else.
Prices must be raised above the information
al level Of prices before now Of gold, either
way, sets in
FRKE COINAGE OF snvER
The main question has now been reached
Whist Will be the effect Of the free coinage Of