Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1893-10-12

show, with stiking clearness and final
ity that the output of silver has kept
very much nearer these commodities
than has the gold product. From
this Mr.. Howell argues very plausibly
that it would be far more just, if we
are going to have monometallism, to
make it silver recommendation instead
of gold. And mark the injustice of
this appreciating standard:
"When the farmer has a mortgage
on his land. the appreciating dollar
does him a threefold injustice. 1t
shrinks the value of his land, it aug |
ments his indebtedness and at the
same time by lowering the price of his
produce takes away his ability to
pay. The land value shrinks under
the mortgage, and the mortgage
spreads out over the land until there
is no margin left Tor the original owner,
and foreclosure is inevitable. The
money brokers are entitled to their
principal and interest. They are not
entitled to the unearned increment of
their wealth caused by the apprecia-
ton of the money standard.
"But the farmer is not the only one
who has suffered from this process.
The shrinkage in the values of rail-
roads, telegraph lines and manufac-
turing plants is everywhere felt. In
vestors do not like to invest in stocks
that are certain to be worth less be-
fore they are worth more. They will
not buy on a falling market, and there
is no bedrock below which prices can
not go.
"If the monetary policy of the coun-
try makes gold the most desirable and
only secure form of property, it is to
be expected that men who have it will
not invest it. but will either hoard or
loan it. Until the monetary basis is
broadened, there will be no enduring
relief for the present depression OF
trade and enterprise. All our money
is now referable to gold, and appre-
ciates with the appreciation of gold.
Even IN silver dollars must be rep
resented by gold dollars worth of sill
yer bullion in the treasury. Issuing
new forms OF currency, payable di-
rectly or indirectly in gold, will afford
no relief, but will rather tend to ac-
celerate the upward course of gold.
The United States could doubtless is
sue without limit greenbacks payable
in gold, which would pass at par, for
the faith OF the world is absolute that
the United States will redeem accord
ing to its promise, eve though it were
in dodo eggs. The United States can
not by legislature increase the supply
OF gold in nature. Until this is done,
however, the issuance of additional
promises to pay gold in whatever
form will not relieve, but rather in
crease, the difficulties OF the situation.
Perhaps it would not be safe to de
clare for free coinage at the ratio OF
10 to L. At the present time the mar
ket value of silver is 73 cents an ounce,
while it's coming value is S1.29. A
free coinage Law at the old ratio would
be equivalent to an attempt on the
part OF the United States to raise un-
aided the price of all the silver in the
world from 73 cents to S1.29 per
ounce in gold. We are a great people,
but hardly equal to such an under.
taking as this. 1t is quire safe to say
that we would get more silver than
we wanted, and that we could not
maintain it on a parity with gold.
"But the power and influence of the
United States is great enough to raise
and maintain the price of silver at q
point far above its present abnormally
low price. This point should be dis
covered, n our mints opened to its
free coinage at whatever ratio that
would be. / believe that a free coin
age law in the United States at tine
ratio of 20 to l would be an entirely
safe measure, and hat it would abso
lutely fix the price of silver the world
over at not less than S1.O3 an ounc,
in gold. Nor would we get more silver
than we wanted, for confidence in the
white metal would be so restored
thereby that it would again be in de
mand IN other countries for money
purposes.
1.-The failure of the Bland-Allisor
law and the Sherman act to fix the
price OF silver is no criterion of the
effect a free coinage law would have
for neither OF these laws intended to
accomplish this result. On the con
trary, they have both treated silver
as a commodity to be measured, like
: other commodities, by a gold stand
! ard. They have created a certain de
mand for silver, and to this extent
I have benefited the owner of silver
: mines; but they have done nothing tc
stop that steady appreciation of gold
that has brought disaster to all kinds
Of values. Nothing short of a law
that involves the principle of free coin
age and makes silver full legal tender
J will accomplish this"