The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-05-20
a PLEA FOR THE FREE AND UN-
LIMITED COINAGE OF SILVER.
To the Editor Of the Eagle.

modify, and, like every other commodity
that its relative value depends upon tn,
supply and demand. To illustrate thi
point more fully, let US take into consid
Grafton case with which every one i
perfectly familiar. For instance, no ont
viii dispute the fact that the relative
value of wheat per bushel, depends en-
tirely upon the supply and demand
therefor. In other words, that wher
the supply of wheat is very small com
pared with that of other products, it:
purchasing power is CORRESPONDENCE
| great. That is to say, when such con-
dition of things actually exists, bushel
of wheat will buy more of everything
else than it would were the supply
greater. Now, if this is true of wheat,
it is also true Of rything else, even of
gold.
Carrying this hypothesis still further,
we will suppose, for the purpose of ar
| gument, that every person had gold
mine upon his land. and that it was so
plentiful that it could be taken from the
surface by the shovelfull. If such now
| were the case, would anyone contend for
a moment that gold would have the
same relative value that it now has? And
if it would not, then the gold dollar into
| which the gold had been coined would
| likewise be deprecated in value. Hence,
the proposition that money is a COM
modify and its value depends upon its
supply and demand is fully established.
Now, no one objects to gold as a money
standard, but its supply has become SO
very limited and the demand. therefore,
has become so very great, that there is
not enough of it to meet the demand
therefor, or to do the constantly increas-
ing business of the country. Hence, we
must resort to some other method
by which the present volume of
money may be greatly increased.
We therefore endorse and recommend
the free and unlimited coinage of silver
as being the best means OF accomplish
ing this purpose: First, because Of its
stability; second. because of its general
use as money to greater or less extent
the wide world over, and third because
of its convenience in being carried about
the person.
Now, the chief objection, that has
been urged against the free and uniimit-
ed coinage of silver, is that the present
silver dollar is not worth a dollar. That
is to say that 3714 grains Of silver, the
amount of silver in our present silver
dollar is not worth dollar in gold or
dollar in silver. Now, while we will adj
nit this to be true, we will also attempt
to show that it is true simply because of
the restrictions put upon the coinage of
silver, or in other words, that if we had
free and unlimited coinage Of silver, that
3114 grains of silver would always be
equal in value to either a gold
dollar or a silver dollar. This
probably can best be shown by
analogy. For instance, suppose that
this country was well adopted for the
production Of both tea and coffee, and
that in order to guard against their
adulteration, the government should re-
quire that before either could be sold
for food purposes they must first be in
spected and stamped by the govern
ment. We will also suppose that the
ratio of value between the two was as
four to one, That is to say, four pounds
of coffee being equal in value to one
pound Of tea. Suppose now, that in
order to get up a corner on tea" the
government should totally prohibit the
sale of coffee for table use; would this
not greatly diminish the demand for
coffee, and consequently greatly increase
the demand for tea? thereby decreasing
the value of the one, and greatly increas-
ing the value of the other: Suppose
again, now, that the government wish
ing to assume the role of ''specu-
lator" would remove this prohi- |
bition in part from coffee, |
by authorizing the secretary Of the
treasury to buy thereof $4,000 pounds |
each month, at the lowest market price |
and at not exceeding a stated price, to
place the government stamp upon it and |
retail it to the people. Now if there |
We're no selling price placed upon this |
90, 900 pounds of coffee by the govern |
ment, it would at once assume its origi- |
nal ratio of value with tea. That is to |
say four pounds of this coffee would now |
be worth one pound of tea, because the |
prohibition placed upon it has been re-
moved. Still at the same time four |
pounds of this coffee would be worth |
more than four pounds of the coffee !
upon which the prohibition still remain
ed in force. for the reason that the
demand for the one would be much |
-
pose that this prohibition now be entirely |
assume its original ratio of value with /.
tea. That is to say, four pounds of |
coffee would now be equal to one pound |
Of tea. as at first.
So it is with gold and silver under our
present coinage laws. That portion of
silver coined into money assumes at once
, a.
he uncoined portion does not assume a
money value, simply because of the re-
'trictions placed upon il by our govern
nent. When, however, these restric-
lions are finally removed, 311.25 grains
If uncoined silver will be worth dollar
both in gold and silver respectively, and
lot till then.
Another objection that has been urged
against the free and unlimited coinage of
silver is, that this country would be the
dumping ground for all the cheap
silver of the entire world Somehow or
)ther this objection has very familiar
sound. If we mistake not, this same
has for the last fifty years or
more been urged against many of our
should similar restrictions be
'emoved therefrcm. But to continue
ne discussion, the OBJECT OF the Tree and
unlimited coinage of silver is,
lot TO increase the value of
silver. bat to increase the purchasing
,ower of the dollar so that a gold dollar
II silver dollar viii be worth no more
han 3114 grains of uncoined silver.
This can only be accomplished. by in
'reasing the money supply of the coun-
ry. thereby decreasing its purchasing
power When this has been so far ac-
that gold dollar or a silver
iollar will be worth no more than 37l1