Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1892-11-04

this condition OF things. Why, my
friends, the causes were and are beyoud
the power of any party to prevent.
It was the great law of trade and OF
supply and demand that fixed the value
OF coin in the dollar, just as it does
your produce in the market. e=.
cit is simple lesson and no one need
be deceived if he will honestly investi-
gate. And study OF the history of
modern monetary changes will convince
anyone OF this TACT. Up to the year
1873 silver was used by all civilized ma
tions, except Great Britain as money,
upon fixed ratio OF coinage with gold,
80 that the parity OF the two metals
was substantially maintained. When
nearly all the nations coined it the sup
ply Of silver WAS easily exhausted and
it's price maintained After 1873 the
price of silver began to decline. This
was owing to two causes; first, to it's
restricted coinage in European coun-
tries: second, to the rapidly increasing
supply by the development OF the great
mines OF this country. Germany,
assisted by the payment of a large war
indemnity in gold, which she exacted
from France, was the first to discard
silver, and like Great Britain adopt
gold as it's single monetary standard.
At that time Germany had $500, OOO,-
900 worth of silver coin. She began to
sell it and replace it with gold. In two
years she sold one-half of it and con-
tinued until two-thirds had been sold.
The result was, the price of silver rapid
ly declined This discarded silver found
it's way to the mints of France and
Belgium and other neighboring
countries. These governments became
alarmed. The states forming the Latin
union, seeing that their mints were
being made the dumping ground OF
Germany's silver, agreed to limit their
coinage OF that metal. and subsequent
ly suspended it altogether. Other ma
tons did the same, so that now there
is not single European country where
the mints are opened to the free coinage
of silver.
I'm the face OF this limitation of the
use of silver, and it's consequent failing
demand, it's production has steadily
increased. In 1873 this country pro-
duced 27,65O,OOO fine ounces. Last
year our production was SO, 100000,
orc than twice 40 much.
"In 1878 the worlds production wos
63,267, 900 fine ounces and last year
143, $50, 900 fine ounces or more than
twice IA great. 1t must be clear to
every one that in the face OF this largely
increasing supply and failing demand
for coinage in Europe, the price OF sill
yer must fall. With the exception of
1873, when We limited the legal tender
quality OF silver for a brief time, this
country has done all that it could to
maintain the use of silver as money
and keep up the price. It has adopted
measures against the judgment of our
ablest financiers regardless of party be-
lief, who held that in the face OF Euro
pean reputation they would be danger
GUS.
'In 1873 congress- passed a bill re-
quiring the secretary of the treasury to
purchase and coin not less than 80 ,OOO,-
600 worth per month, or 1921, 100000
per year, and permitted him in his dis
cretion to purchase 100000 per
month or $48, 900, 900 per year, though
the entire production of silver the year
previous was less than $31, 100000.
Nearly every one, except few far-see-
ing statesmen, thought this would keep
up the value OF silver, yet in the face of
this forced purchase and coinage, the
value steadily declined. In 1890 the
Sherman law was passed, which COM
PEELED the purchase OF $500, 900 ounces
per month. or 54,OOO,OOO per year,
though our entire production the year
previous was but 100000.
Again it was thought that the price
would increase, and while it did for u
brief space OF time, owing largely to the
speculation in silver bullion, it has
since rapidly declined until it is now
lower than ever before, and it has been
stated the value of the coin is only two
thirds ofwhat on it's face it purports to
be. Now those who favor free silver
coinage, desire the United States to do
what no European nation dared do
after Germany had started the process
of denomination. They demand that
silver be restored to it's former position
in. the financial world. Yet they seem
to take no account OF the changed con-
ditions. They would open the mints of
the United States to the coinage Of the
worlds silver, though this country pro-
duces less than two tifths Of the worlds
annual production. to say nothing Of
the large stores held in European coun-
tries which would flow to our mints as
inevitably as the silver currenGs OF
Europe found their way to the mints
that remained open after the process of
decentralization had begun.
am ~