The midland journal. (Rising Sun, Md.) 1885-1947, 1893-02-24
QUESTIONS OF THE DAY.
Silver in its Relation to Wheat and
Cotton.

including that Of two Royal Commits
sions, for the state ment that the Indian
rupee will today buy in India as much
land or labor or as much of any pro-
duct as it wonld twenty years ago or at
any other period in recent time.
The coinage of silver into rupees in
India on the ratio Of Is to l is free to
all owners of bullion. As rupee con
tains $50 grains of silver, an ounce of
silver will make little over p rupees.
For long time, % rupees IL for the
wheat and l for transp ortation) would
buy bushel of wheat in India and lay
it down in Liverpool,
At our ratio of Is to |, an ounce of
silver is worth in gold $1,000 at that
ratio-that is, with silver at par with
gold on our ratio, pound sterling will
buy silver enough to make almost ex-
actly 10 rupees, and the 10 rupees will
lay down in Liverpool 4 bushels of
wheat.
With silver at IS cents an ounce. a
pound sterling will buy very nearly 6
ounces Of silver, or enough to make Is
rupees; and the rupee price of wheat
being the same in India, Is rupees will
lay down in Liverpool 6 bushels Of
Indian wheat, or bushel for an ounce
of silver.
Therefore. when silver is IS cents an
ounce. unless the wheat grower in the
United States will deliver 6 bushels of
wheat in Liverpool for pound sterling.
the Liverpool merchant will go to India
for his wheat, and as cost of transport
tation from India is reduced, SO much
wheat can be delivered for an ounce of
silver.
On the other hand, if silver was at
par, or $l.29 an ounce, the wheat
grower in the United States would have
to deliver but 4 bushels for a pound
sterling.
Six bushels of wheat delivered in
Liverpool for pound sterling is equiv,
alent to about 7S cents in New York.
or say SO cents in Chicago. while
bushels for pound sterling in Liver
pool is equal to Sl.19 in New or Sll0
in Chicago.
Another way of stating the same
thing is the way it was stated by
Moreton Frewen, in his address before
the second silver convention at Wash
ington. An ounce of silver bullion will
always buy bushel of wheat in India
and pay transportation on it to Liver
pool, Hence, the American farmer
must also lay down his bushel of wheat
in Liverpool for an ounce of silver
bullion. If this ounce of silver is
worth but IS cents in gold, then all
the farmer can get in gold is IS cents
lesSthe cost OF transporting the wheat
to Liverpool, Therefore, if the farmer
will deduct the cost Of transporting a
bushel of wheat from Chicago to Liver.
pool from the price of an ounce of
silver, he will have very nearly the
price of bushel of wheat in Chicago.
Assuming the cost of sending a
bushel of wheat from Chicago to Liver
pool, including storage, insurance, and
brokerage, to be Is cents, and silver to
be worth 95 cents an ounce, then whea,
in Chicago would be worth 70 cents.
But if silver were at par, as it would be
under free coinage, an ounce of silver
would be worth $l.29, and a bushel of
wheat IN Chicago would be 81 20 less
the cost of sending it to Liverpool, or
about $1.14.
Hence, as silver rises above, or falls
below. IS cents an ounce, so will wheat
in this country rise above or fall below
the prices above stated.
From the above it will be seen that
while the Indian farmer gets the same
price, in rupees, for his wheat now that
he got twenty years ago, the American
farmer gets not quite two,thirds as
much, aud the consumer, or middle
man, gets the difference. 10 1873
India exported only 73O,4S5 bushels OF
wheat; in 1892 India exported
100000 bushels.
Any one can figure mp the loss of the
American farmer. 1t amounts to from
100000, 600 to 1920, 900 600 on the
wheat crop OF single year.
The effect on cotton and cotton man
ufactures is the same as on wheat. An
Indian rupee will buy about 4 pounds
in cotton, and pay transportation to
Liverpool. As an ounce of silver makes
% rupees. an ounce of silver will buy
10 pounds of cotton and lay it down
OF Tiuavnool With s;Iuor NJ cI % -.