The Wichita daily eagle., 1891-10-09

NOAHdRO puI
2. In 1872 congress passed the act au-
thorizing the issue of the trade silver
dollar containing 400 grains OF silver,
which during the four years the stand
ard dollar was demonetized, created a
demand for over $34 900. 900 trade dollars,
which was more than an equivalent for
four times the demand for silver
for the standard dollar during eighty
years of free coinage.
8. The very first year of compulsory coin
age of the standard dollar So, Az, 900
were coined, thus in one year compul-
sorry coinage created demand for near
" three times as much silver as eighty
years of free coinage had done.
What then has been the cause of the
great decline in silver bullion as COM
pared with gold? The answer to that
question is the enormous increase in the
production of silver as compared with
gold since 1878. In 1852 the production
of gold in this country reached $65, ,O00,-
600, the highest point in the history of
the country. From that year 10 1888 II
declined until it was but $50, 900, 900, its
lowest point; since then it has varied
from $50, 900. 900 to s33. 900, 900 year.
Now what has been the changes in the
production of silver during the three
years. From 1S4S to 1857, a period of
nine years, the annual production of sill
yer was only about $50, 900. In 1858 it
ran up to $500, 900 and the yearly pro-
duction thereafter annually increased
until in 1878 it reached S35, 750. 900, which
was only S25, 600, less than the production
of gold, that year. In 1874 the output of
silver was $S7 .399. 900, while that Of gold
was but S33, 800, 900. The production of
silver has since that year been gradually
increasing until 1899, when it reached
$64, ,646, 600, while that of gold was only
S32, 800, 900, silver thus surprising
gold in production by S31 ,e46,00, which
was nearly two dollars of silver to one
Of gold. From 1878 to 1899 the produc-
ton of silver in this country was $685.
791 ,464, while that of gold was but
S4l9, ,875 900, silver thus surprising gold
in production by $16S, GIG, ,464. There is
nearly twice as much gold used in tie
arts each year as there is of silver.
While this important change in the pro-
duction of gold and silver has been 60
ing on in this country. similar changes
have taken place in other countries.
The silver production of the world has
SUI Dc1ccCl hIdb VI S,OiO HC0l oiI\C
1882. In 1889 the coming value of silver
produced, in the world, was $161. .31S, 900
while that of gold was but $121 1872, 900,
silver thus surprising gold by $40, 100, 900
Since 1882 silver production has surpass-
ed gold production by $137 ,425, 900.
These facts explain why silver has de-
clined in value so much as compared
with gold, and that the demOnetizing act
Of 1873 had substantially nothing to do
with the decline.
Mr.. Reynolds places the value of the
bullion i'll the silver dollar at 751 cents,
DR. 77t cents in gold, and makes the fol-
lowing statement in reference thereto:
"The government fat then makes the
silver that can be purchased for 77S
cents worth full dollar"
If by government fiat" he refers to
5he act that makes 4123 grains of silver
fine legal tender, he makes
l mistake that if adopted in prin.
,iple will prove a death blow
% the business prosperity of the country.
The only fiat of the government that
maintains the 754 or 775 cents silver
lollar at par with gold, is the law estab-
ishing the compulsory coinage of silver.
Under that law the secretary of the
.reasury can take 800 in gold and buy
silver bullion sufficient to make 1851
silver dollars, and so long as he has that |
power in his hands he can make profit |
enough to enable him to exchange gold |
dollars for silver dollars, and thus keep |
he two at par with each other.
But the moment you exchange COM |
)ulsory for free coinage, that moment |
he silver dollar drops its bullion value, |
IS money, and all the gold will go out of |
circulation The bullion in the gold |
lollar will sell for 25t cents more in the |
money, and, hence, will disappear at |
he government of the power TO buy |
liver bullion at gold prices and of the |
Profits on its coinage, and this stops the |
of gold dollars for silver dol
ars. No man will pay his debts with |
money that costs 100 cents on the dollar |
when he is neither morally nor legally |
,ound to do so, if he can get |
money at Tot cents on the dollar,
hat will answer just as well. |
free coinage would at once change the
tandard of our money form from gold |
0 silver and all the gold would retire as
money?
Mr.. Reynolds says very correctly, "No
'ther country with gold standard will |
AXE the silver dollar for more than its
liver value" With free coinage, neither
will the people of this country take il for
more than its silver value
We predict that if Ohio should be car
led by the Democrats by any fair ma
ority and free coinage be endorsed in
hat state, you will. see a money panic
n this country that will very seriously
fleet its business prosperity in every
ownship from Maine to California.
Mr. Reynolds says:
IF the government can make a dollar
ut of 37lH grains of silver. by its stamp,
r fat, as IL Is called, why can IL not make
dollar out of fifty grains OF silver or in
act any other quantity less than the dol
ar value, of the silver Or II it can make
scent nickel coin out of 2 cents worth OF
ickel, why may It not make IL out OF ma
erials not worth q hundreth or thonsanth
art of a cent?"
Now, If the principle stated in the
bove is true why should not the govern
lent issue at once S64, ,000, 600, ,000, 900 of
uch money and give each man, woman
nd child million dollars. thus making
| lmillionaires?
The difficulty with this fat money
neory is it is based on a false idea Of
money and its legal uses. As we have
efore stated, the 4l2i-grain silver dollar,
ine-tenths fine, is only kept al par with
old BY compulsory coinage. The mo
lent free coinage is adopted its value
5 money drops from the gold standard
} the silver bullion standard, and all
be fat of the governments Of the uni
erse cannot make il the equal OF gold
nd about $700, 600, 900 Of gold coin and
ullion now available as money vanishes
rom circulation. The cent nickie coin,
lade from cents worth Of nickle, IS