Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1893-05-23
silver IN IT, Relation 70 wheat and
Cotton.
ny A. }. WARNER.

missioners, for the statement that
the Indian rupee will today buy,
in India, as much land OF hard la
Dor, or as much Of any product as
it would 20 years ago or at any
other period in recent times.
The coinage Of silver into rupees
in India, at the ratio Of 10 TO / is
free to all owners of bullion. AS
a rupee contains $50 grains of sill
yer, an ounce Of silver will make q
little over p rupees. For a long
period, and continuing to the pres
ent time, % rupees (13 for the
wheat and l FOR transportation
would buy a bushel of wheat in
India and lay it down in Liver
pool.
AT our ratio of 16 to l, an ounce
of silver is worth in gold Sl.2929;
at that ratio, that is with silver at
par with gold on u ratio, a pound
sterling will buy silver enough to.
make exactly ten rupees and the
ten rupees viii lay pown in Liver
pool four bushels of wheat.
With silver at IS cents an ounce,
a pound sterling will buy 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 a bushel for an ounce of
silver.
Therefore, when silver is So
cents an ounce unless the wheat
grower in the United States will
deliver 6 bushels of wheat in Liv-
erpool for a pound sterling, the
Liverpool merchant will go to In
dla for his wheat, and as cost of
transportation from India is re-
duced, SO much more wheat can be
delivered for an ounce of silver.
On the other hand, if silver was
at par at $1.29 an ounce, the wheat
growers of the United States
would have to deliver but 4 bush
els for a pound sterling.
Six bushels of wheat delivered
in Liverpool for a pound sterling
is equivalent to about 78 cents IL
New York, or say SO cents in Chi.
clgo, while 4 bushels for a pound
sterling in Liverpool is equal tc
S1.19 in New York, or $1.10 il
Chicago.
Another way Of stating the same
thing is the way it was stated by
Moreton Frewen, in his addres
, before the second silver conven
: ton at Washington. An ounce O
8 silver bullion will always buy
! bushel of wheat in India and pa,
: transportation on it to Liverpool
E Hence the American farmer mus
always lay down his bushel O
wheat in Liverpool for an ounc
of silver bullion. If this ounce Q
silver is worth but IS cents i
gold, then all the farmer gets i
gold is IS cents, less the cost {
transportation to Liverpool
Therefore, if the farmer will dc
duct the cost of transporting
e bushel of wheat from Chicago I
Liverpool from the price of q
ounce of silver he will have yer
nearly the price Of a bushel {
wheat in Chicago.
Assuming the cost of sending
y bushel of wheat from Chicago
i Liverpool, Including storage, il
surance and brokerage, to be
81 cents and silver to be worth s
c cents an ounce, then wheat in Oh
cago would be worth 20 cent
, But if silver were az par, as
would be under free coinage, &
ounce of silver would be wort
" S1.29, and a bushel of wheat i
Chicago would be worth Sl.29 lie
the cost of sending it to Liverpool
or about S1.14.
D Hence, as silver rises above
d falls below So cents, so will whel
.e rise in this country above {
fall below the prices above state
p From the above it will be see
d that while the Indian farmer &c
k, the same price, in rupees, for b
l. wheat now that he got 20 yea
1T ago, the American farmer gets N,
" quite two-thirds as much, and Il
. consumer or middleman gets Il
n difference. In 1873 India expol
re ed only 720,4S5 bushels of whea
n in 1892 India exported 59,0O0,Ol
l. bushels.
~ Any one can figure up the 10