The record-union., 1894-10-13
SILVER AND WHEAT.

The Argentine Republic is becoming
competitor with the United States in the
production of wheat. In this competi-
ton it possesses many advantages. In
the first place the soil of the pampas,
which for the most part are being broken
for the first time, is very FERTILE and the
volume of production is upon the basis
of the fertility of virgin soil. In the next
place the cost of transportation from
Buenos Ayres to Liverpool is about one
third of the cost from San Francisco to
the same port. In the third place, and by
far the most important consideration, is
the fact that labor employed in the pro-
d'uction of wheat in the Argentine Re-
public is paid for in a deprecated cur
rency. The circulating medium OF the
Republic is a paper issue worth about
thirty-three to thirty-five cents on the
dollar. All the cost entering into the
production of wheat in that Republic is
scaled down to thirty three per cent, and
this by reason of the fact that the wheat
is sold in Liverpool and dollar of gold
Is worth about three dollars of the cur
rency used in the country where the
wheat is produced.
These advantages in the competitive
race are overwhelming. The Liverpool
market takes wheat from the highest
market last. If it can be supplied from
the countries which can deliver wheat to
1t at the minimum, it stops with that sup
ply and asks for no wheat from the coun-
tries where wheat is produced at the
uledium or maximum cost.
California has possessed an advantage
which she holds against the world. The
principal one is in the absence of storms
during the harvest period. This is equal
to twenty-five per cent. of the wheat
crop, which is saying that throughout the
world the loss by storms during the har-
vest period is equal to twenty-five per
cent. of the crop, taking one year with
another. This is an offset to her disad-
vantages.
There are other minor advantages
which need not be noted here, which will
occur readily to the mind of the reader.
The chief advantage possessed by the
Argentine Republic in the production
and sale of wheat in its final market re-
lates to the use of deprecated currency
at home In which the cost of producing
the wheat is paid.
If Congress upon assembling in De-
cember will pass bill authorizing a free
and unlimited coinage of the silver of the
world, wheat growing would become
immediately profitable in the United
States. Wheat would be sold to the rest
of the world for gold. The return would
he made to the grower in gold, and he
would be able to buy at least two silver
dollars for every dollar of gold returned
to him. The silver quotation of the value
of the land would rise Immediately, pos
sibly 100 per cent. Land selling for $40
an acre, payable in gold coin of the
United States, would sell for $40 an acre,
payable in lawful money of the United
States. Likewise land now held at $50 al
acre would bring 500 an acre quite as
readily in lawful money of the United
States. The mortgage note would not
advance IN value. 1t has sum written
in its face. When man borrows money,
he borrows row of figures. For the
most part it is payable in row of figures
10y credit at the bank; but when it is
paid in coin the sum expressed by the
figures is not increased.
If the United States were to debase the
gold coinage of the country, putting $40
worth of gold in a twenty-dollar gold
piece and stamp on its face $40, the mort
gage would remain the same unless it
was expressed that the sum to be paid
was to be paid in gold coin of the weight
and fineness as coined at the date of MAX
ing the mortgage note.
To recur, however, to the competition
between the United States and the Ar
gentine Republic and the influence
which a deprecated currency is having
upon that competition, it is plain that the