The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-02-08
a FARMER ON THE SITUATION.


no matter how popular, as well as uncer-
tain theories, afford no safe ground on
which to base legislation having for it,
object the well-being of the people.
Within the last twenty years tidal waves
Of more or less velocity have swept over
the country, only to subside again to
their natural level. At the present time
conjunction of warning elements de-
clare that their former theories could
not stand the test of intelligent criticism
but they have now evolved panacea,
that, if taken according to directions,
will bring prosperity with all its attend
ant blessings to each and every unit of
the body polite. This great cure-all is
nothing more nor less than to pay "a per
cent more to the silver kings for the
product Of their mines than the CONNER
cial value of silver. This would not
only be taxing one industry for the ben
eft of another. but it goes further and
taxes all industries for the benefit of one.
Legislation is powerless to overthrow the
law of supply and demand, and our law
makers might as well try to establish a
ratio of price between our wheat and
corn as between gold and silver. This
ratio between the precious metals Is
constantly changing; in the sixteenth
century it was as l to 10, then it changed
70 / to IA, and when the constitution OF
the United States was adopted the rela-
tive value of the two metals was as l to
10: in 1884 the ratio was again changed
so as to conform more nearly to the
commercial value of the metals, and to
IS was the rat o adopted. At present
the commercial value of the two metals
ranges from 1 to IS, and ranging up to
%. Thus plainly showing that silver, as
compared with gold, is constantly lower
/ ing in value. Were the mines of
Nevada and Colorado exhausted and no
new silver mines discovered, silver
would rise in value and no legislation
could prevent it. From an impartial
examination of this subject the intelli-
gent readers of the EAGLE must come
to the conclusion that the price
/ of silver, wheat and all other
commodities is unalterably fixed
( by the relation which the worlds
total supply bears to the worlds total
demand. This being one of the many
self-evident propositions that requires no
demonstration, it is useless to multiply
words in proving its correctness. The
stockholders in our silver mines have had
powerful influence in shaping legisla-
! ton for their own benefit. First they
prevailed in congress to destroy our do
nestle fractional currency, the most con-
venient and less expensive currency the
world ever saw, in order that their silver
might take its place and consequently
receive millions without giving an equiv
alent therefor.
! We are assured by one class of finan-
| cial theorists, that although it may APP
pear ruinous 10 purchase silver at from
/ twenty to twenty-five per cent above its
market value we will be- compensated by
| the higher price which all the products
of the farm will command and money
will become so plentiful that the rate of
| interest will be lowered. To prove the
incorrectness of this theory, it will be
only necessary to go back to 1913 when
gold was discovered in California. From
1851 to 1856 there were annually added
to the circulation 100 millions,
averaging one wear with another. in
the aggregate $50 millions of dollars
but there was no increase IN prices OF
farm products or in manufactured ar
ticles either, but on the contrary, in the
case of large groups OF commodities,
prices rather sunk TO lower than rose
TO higher level. Legislative enact
ments are not omnipotent and cannot
arbitrarily control the volume of money
in the circulation of any country. Pre-
viodIs to the passage of the Mckinley bill
$50, 900 were sent TO Europe for the pur-
chase Of wooden goods by New York I'M
pOrters alone. and the quantity of money
in circulation in the United States was
correspondinglv reduced. Similar trans
actions are occurring in all commercial
countries every day, and 1t does not re-
Quire a very high order of intellect 10
understand that the circulating medium
of exchange Is always increasing or d.
mlniShing and never stationary IN any
country. In order that any country
may attain material prosperity 1t Is
essential that all its labor, assisted by
improved machinery, must be employed.
To get remuuerative employment for
our people Is the great problem await
ing solution. and it cannot be
satisfactorily solved until we cease TO
import the products Of skilled labor
and give an opportunity 70 our own peO-
pie 10 engage in more remuneratlve en-
plOyment, than producing raw MATERIAL
France has more money IN circula-
ton per capita than England, bat this
increased money supply does not in
crease the price Of French goods. II Is
conceded that poor. half starved india has
more money per capita than England
and prices Of all native products are but
a few degrees above zero. IL should be
well known that both America and Eng
land use more bank checks. drafts, Ger
tificates of deposits, bills Of exchange,
and evidences Of Indebtedness that have
no legal recognition as money than any
OF the other nations OF Europe and
thus an increase in the metallic or paper
money Of any country cannot destroy the /
equilibrium OF prices But Will not the
free coinage Of silver decrease the rate Of
interest: No, If we may Judge the present (
and the future by the past, II may IN
crease rather than diminish the rate OF
loanable capital. We know that during /.
the war the rate charged for the use OF 4
money increased as the quantity Of 4
money increased, and we cannot logically /
assume that a similar cause would N TINS .
year Of our Lord produce drssInllar
effect Our own clear-headed +. h 1
Plumb Is right when he declares that al .