The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-10-02

80 Wv CHo aCCIOn OF The English dele
gaCes-hear, hear, and applause)-or
some OF them, which broke up the con
ference at Brussels Hear, hear.) On
This point l could give you some strik-
ing testimony both from the German
chancellor and the President of the
United States, but l am afraid of being
TOO long. Only this I may mention.
that In Germany, which is said by some
people.to be the chief obstacle, it is not
two months ago since they have been
obliged to appointed a royal commits
sion on this very subjectof their own to
see what can be done to repair the mis-
chief that is following these changes.
You may take it from me as certain
that England is the great impeachment
at present to this great reform, and it
Is In England that we will have to over
come the opposition.
THE OBJECTIONS TO BIMFTTALIsM,
Nov. what are the usual objections
that are urged to our views9 I have
been asked by some correspondents to
reply to one or two of them, and I will
do 30. The first, the old stock argu-
ment, is this: You cannot maintain a
fixed ratio between gold and silver any
more than you a between any two
other commodities. You cannot inter
fere with the laws of supply and de-
mand. The thing is impossible; it is,
IN fact, a bimettalic dream. Now, our
opponents appear to be still in blissful
ignorance of what is, perhaps, the most
elementary fact of our contention, viz
that the bimettalic theory affords, per-
haps, the most perfect and most strik,
ing instance of the operation of those
laws in specially instructive case, and
I believe I am right in saying that that
is the opinion of every teacher of politi-
cal economy in England at the present
time. applause Mind you, this is
very ancient history, but so many of
the critics have so little learned their
lesson that I will repeat one argument
on the subject, and I think it will suf,
fee. What we say is this, that the
law can exact that either, or both, of
the metals shall belegal tender for debt.
That we know, because it has been done
effectually already. And thereby the
law creates what is and what has been
the chief demand for the precious
metals-namely, for the purposes of
money. The law can also enact that
they shall be legal tender at a given
ratio between the two, for this also has
been done, and done effectively in the
past. Now comes the question: How
is the ratio maintained7 The answer
to this question is that debtors will
always try to pay their debts in the
cheapest way they can, that is to say,
in whichever metal is the cheapest.
What do those debts amount to2 The
indebtedness of the world is estimated
at something between twenty and
thirty thousand millions sterling. Con.
sequently, if either metal falls, for any
reason, below the legal ratio, there will
be an immediate increase in the de.
mand upon it for the purpose of the
payment of debts. The increased de.
mand produces it's natural effect. The
metal which has shown the smallest
tendency to fall returns to the normal,
or rather. I should say, the legal level,
Formerly it was gold-at the time Of
the great gold discoveries forty years
ago. More recently it has been silver,
the production of which of late has
much increased, although in nothing
like the same proportion as the produc
ton of gold increased in former days
And in this way an automatic action il
set up, which not only keeps the rela
tive value of the metals steady, but
makes it impossible, as we contend, fol
them to vary, except within the small
est limits. If a great increase in either
metal should occur, and begin to have
the least effect, the parity is Immediate
ly restored by the operation of the
natural law. And this explains at once
the practical stability of the ratio dur
ing the long periods ~antecedent to 1873
when the variation in the production Of
the metals was infinitely greater thar
it has been aver since then. feel tina
I ought to apologize for repeating THU
fundamental argument in replying tx
the Anticipated objections with which
we are assaulted, but if I had not done
so 1 was afraid that I should be at
tackled, like your distinguished coun
tryman, Mr.. Arthur Balfour-(ap
plause)-in the city not very long ago
for not answering the objections which
vera advanced against bimettalism