The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-06
Afrer The Sherman LAW. What ?

Editor The Times: Says the New York
Times. good auth ority: The silver ques-
ton is settled for this generation and
while everybody does not use these exact
words, they about express the general
belief or at least feeling. What every
bol- says must be so. and as it is neither
modest nor discreet TO dissent from the
crowd. / go along with IT, and l further
agree with the president OF the Chemi-
cal National link that doubt in regard
10 the future will be dispelled,' by the
mere Expectation Of repeal.
But a friend SAYS he don't believe one
Of these blessed or wonderful things, or
hardly one. but that repeal is rather likely
20 preciptate suspension OF gold pay
mants and leave us on the silver basis
He reasons thus: II excessive supply
means low price, and If continued excess
sive supply means extra low price
then whether the price Of silver is low
depends upon whether the worlds sup
ply Of silver IS excessive, and whether
the price Of silver falls extra low de-
ponds upon supply continuing excessive.
That supply is excessive is proved by the
fall in price from one Of gold 10 sixteen
OF silver IN 1873 90 one OF gold 20 about
twcnty-eight Of silver July 3. 1895, and is
further proved by United States produc-
ton OF silver coinage yalue) from lS'2- 81
having been %51711 ,pj0 against Sii5, 10000
from 1872 to I'll Moreover Senator Sher-
man saws in his Chicago interview July
30: There are in the Treasury f5O.0Q0.o0)
coined and $50 10000 uncOined dollars
Europe's supply. coined and uncoined. is
also admittedly excessive. Silver's
low price may. therefore. reason
ably be charged 10 excessive sup
ply, and Il may reasonably be claim
ed that its price must be still lower II
supply be increased either relatively or
absolutely.
Let MS now consider increased supply.
combining ourselves 20 home and leaving
India wholly ont Of view. Repeal means.
Of course, absolute loss OF demand for
5000 900 ounces annually and means that
much supply additional 10 present supply.
If a market is found for this extra sup
ply. further decline ceases. but If not.
shosld not these 100000 surplus ounces
fearfully depress price? But production
VIII not decrease and thus preserve price!
Granted, but unless production is de-
creased 100000 ounces. which is impos-
sible, there will still be a supply in excess
Of present conditions. Shall We call this
supply forty, thirty or even 250O0.0 900
ounces? Say 2.O0000. Then the future
price Of silver will depend upon the effect
Of this extra annual surplus of 100000
ounces or more. What will probaly be
the effect2
Soon after the passage or the Sherman
bill July j. 1890 silver rose to l22, par
being l29 1-2. This law created an addi-
tional annual demand for 100000 ounces,
and should with balanced supply and de-
mand have maintained silver at l22 IL
not have raised ii 10 par. But instead,
silver steadily declined till IL reached So.
reacting to "A on July 81. Now my friend
asks II an extra annual demand Of 1900, 600
ounces could or did not prevent a de-
cline I'm three years from l22 10 So the
price before midas action what must be
the effect Of a decreased demand of
anywhere from q, 10000 to 100000 ounces.
Think, he says, Of 100000 or
more surplus ounces seeking purchasers
of a world already glutted with silver.
and with sij0,00O,00O lying idle In the
vaults Of only one Government. Silver
must. he thinks. fall In price till new uses
can be found. for ii is so low that peo-
pie can use silverwere instead Of plated
ware. and silver utensils instead OF many
OF base metals.
Silver viii thus fall TO It's natural level.
but whether that level will be % or 50
cents an ounce or what. experience alone
can decide. But my friend believes that
level may be so low that all pretense OF
maintaining parity may be abandoned
when silver will become our basis and
gold go TO a premium dependent upon
the market value Of bullion.
My friend thinks IL will be very diff
cult TO maintain gold standard with bal
ance OF trade much against us Resump-
ton In 1879 was only possible. because
beginning with 1876 trade turned greatly
In our favor, the balance for the follow
ing six years being 81 $50. 0oo. 900. He also
thinks that agriculture should rather