The record-union., 1891-01-16
THE TIME TO BUY.

AAAS AZ ID ~
1t is reported from Washington that the
free coinage measure, with Mr.. Stewards s
is likely to pass the present Congress,
and if it passes, will receive the sanction
of the President of the United States. The
measure means practically unlimited
imitation of the circulating medium. 1t
means an addition of hundreds of mill
ions of dollars to the coinage of the
United States, and consequently in
fiated valuation of all property. The pur-
chasing power of eighty cents worth of
silver bullion is no greater when it is
called a dollar than when it is called
cents is received at the Mint and coined
into a dollar, the nominal value OF all
property will rise proportionately.
Money is the measure Of values. In
trinsic value cannot be conferred upon
metal. Its value is dependent upon the
natural laws of finance and commerce.
When, therefore, the Government de-
clares that it viii coin all the silver bull
ion in the world into discs, upon which
shall be stamped the words zone Dollar,o
making the coin so coined legal tender
for all debts public and private, it means
to set the grade or scale of prices up at
least % per cent. Silver will not enhance
in value, but the things for which it is
exchanged will be advanced nominally.
Unconsciously the advocates of free coin
age admit this truth. They predict rise
in values. The Farmers Alliance people
expect an increase in the value of all farm
products, or farms, or they would not be
in favor of the free coinage measure.
The low grade ore statesmen, that
is to say, the Senators repre-
senting the silver producing States,
have constantly impressed upon the
people the belief that the prices of
everything would rise, if free coinage
were an accomplished fact. If the prop
erty for which silver is to be exchanged
takes on an increased value, then the pur-
chasing power of silver remains the same.
If at the present valuation of silver bull
ion, ALI grains, will buy bushel of wheat,
when wheat is worth 50 cents per bushel,
and the free coinage results in increasing
the price of wheat to a dollar, then 4l2
grains of silver will still buy bushel of
wheat, and no more. There is sense in
which the advance ofthe price of any COM
modify operates to cheaper the coin
which is exchanged for it.
With wheat at 80 cents per bushel the
purchasing power OF dollar is two bush
els. With wheat at dollar per bushel
the purchasing power of dollar has been
decreased one-half Thus when we are
promised that free coinage will initiate the
prices OF all commodities, we are assured
in fact that the purchasing power of silver
is not to be increased. Nominally, how
ever, prices will advance, which is an
other way of saying money viii be
cheaper. If, therefore, there is any assur-
ance that the bill will pass. now is the
time to purchase property of all descrip-
tions and especially real property.
Under a free coinage condition in the
United States real estate will advance
from 25 to 40 per cent. The purchasing
power of silver, that is, its bullion value,
will remain the same as it is to-day The
legislative experiment in the direction of
giving an artificial value to silver, passed
at the last session of the present Congress,
and the lamentable failure that followed
that experiment, does not appearsto have
taught any lesson in the science of sound
finance. That was an attempt to purchase
the entire surplus product of silver that
the price of the bullion and the low grade
ore might advance. The free coinage
proposition is an experiment in the same
direction on more stupendous scale.
The disasters to follow the experiment
will have corresponding magnitude.