Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-07-05
Why Wheat and Cotton are Low.

We have frequently during the last
year called the attention of our readers
to the relation existing between the
price of silver and the prices of wheat
and cotton. We have shown that the
price of our surplus wheat and cotton
is mainly fixed by the Liverpool price
that the Liverpool price IS fixed by the
price of India wheat and cotton; that
the price of India wheat and cotton in
Liverpool is fixed by the price of silver
bullion, and that the price of silver
bullion depends upon whether it is
coined freely or whether it is demone-
tized. In the issue of June %, 1898,
under the caption, ..Why is Wheat so
Low?' we said, eff the United States
had free coinage of silver, and silver
was to rise to $1.29 an ounce instead
of S5 cents the price of silver at that
writing) England would buy great
deal OF wheat and cotton from the
United States which she now buys from
free silver nations like India. AS long
as England can buy silver for S5 cents
and send it to free silver India and
buy wheat with it, at S1.29 an ounce,
she will buy from India while India
has it to spare, OR till her required
amount is secured"
We knew when we wrote the above
that those who advocate the overpro-
duction theory as the cause of agricul-
tural depression, would not admit that
of silver had anything
to do with it, but we did not suppose
that they were actually ignorant of the
fact. 1t seems, however. that some of
the nations most distinguished polite
al leaders have been learning from the
people, and are at last getting their
eyes open. Congressman Thomas B.
Reed of Maine, is in London, England,
and last week was interviewed by a re-
porter of the Fortnightly Rerie,c. Re-
ferrlng to the silver question, Mr.. Reed
said that he had .'learned since the
cessation of silver purchases last year
that cheap silver is an effective stim-
ulus to Asiatic exports. The reporter
suggested that if cheap silver assists
Aslatic exports, cheapening silver
must continue to reduce the prices at
which Asia can afford to sell wheat
and cotton in the markets of Europe.
To which Mr.. Reed replied:
81 agree that is the aspect of the sill
yer question, which, l am frank to con-
fess, has only since last gear attracted
oar notice IN the Eastern States The
fall in silver, its value to pay wages
and to buy products in India and Chi
ma being as great as ever-this it is
that makes of the silver question an
issue that we are forced to face. We
recognize the great increase in the
burden of our gold obligations payable
abroad, because of the vast subsidence
of prices; aCe recognize that falling SIT
Ctf, Oy tO"IIfy WC LuSttfH CICNuNytS,
taUors oar competitors in Asia aUho sell
similar products, wheat and cotton, in
the markets of Europe. 1t is therefore
evidently important for debtor nations,
on which list we stand first, to RAISE
the price Of sitrer and thereby reduce
that bounty on exports which Asia now
enjoys"
The champions of the rights of the
masses should feel thankful that the
light is breaking in the East, although
in this case the light lawned in the
West first.
Mr.. Geo. r. Gibson, member of the
banking and brokerage firm of Watson
& Gibson of New York, has just re-
turned from S-months trip abroad,
during which time he visited the prin-
cipal cities of Europe and conversed
with leading authorities on political
and financial questions. He found that
the depression of trade and industry