The state herald. (Holyoke, Logan County, Colo.) 1887-1921, 1895-07-19
BACK TO OLD RATIO.
SILVER UNDER FREE COINAGE
WOULD SOON INCREASE.
Outlining tho Forces Which May Bs
Expected to Work Together to Re-
Establish Former Comparative Values
of tho Two Metals.

| of tho Two Metals.
George H. Sebley in Chicago Record:
r. 49, Record has taken In
ny s.a"" ~ money
question is praisewortby journalism.
AS an important factor in this cam
paign Of education Is the elimination
of undisputed points trust 1t will per-
NIT believer in bimetallism TO admit
some Of the points made by the dis
tinguished gentleman whose letter ap-
peared In The Record Of Wednesday.
June 49, Mr.. James II. Eckels, comp
troller of the currency.
| Mr. Eckels, In the article above men
toned, says; "a careful study Of many
of the arguments advanced by the ad-
vocates of the FREQ coinage Of silver
shows them to be justly open to
legitimate criticism" Undoubtedly he
is correct as to some Of the arguments
advanced by the advocates Of a bi-
metallic law for the United States at
16 to 1, but many of the arguments ad-
/ NuhSCu W bOlh biuto w hul lVhiy NouNh
the question Mt Issue. except asStney
show what motives have actuated legis-
lation In the past and the monetary
principles to BIO observed in deciding
upon a remedy.
The principal fact which character
ICES the gold standard rs unjust Is
this: Since the tie was severed which
previous to 1873 bound silver and gold
together, so as to make them through
out the world, for monetary purposes,
practically one metal "a bimetallic
standard-the measure or standard Of
countries has increased SO that In Eng
land during January and February,
1895, the wholesale prices Of commod-
tiles were 40 per cent lower than on the
average OF the years 1SG7-77, which Is
the average Of the twenty-five years
March number of Statistical Society's
Journal. Forty per cent is G6 2-S per
cent OF Co; in other words. the exchange
value Of gold increased &C rs per cent
as compared with the periods above
mentioned. In the United States the
Increase has been fully rs per cent. tSce
senate report on wholesale prices and
wages for fall In prices to 1922
| The far-reaching effects OF this apprc-
citation OF the measures of exchange can
only be realized when its effects are
considered in detail; one of the prin-
| ninn1 nf falling Ia ~,
courage production; lessened produc-
ton results finally in lessened wages,
and large numbers of men out of en-
ployment. Another evil is that the
burden OF all debts of eighteen years
standing are nearly doubled. Anoth-
prices are fixed by law, such as street
car fares, gas rates. etc, the exchange
value OF the price 80 fixed has nearly
doubled in the last eighteen years.
Again. many prices are fixed by GUS
tom and so do not fall in proportion as
other prices fall.
There are several other III effects
which have followed as n result OF the
severance OF the tie which previous to
1873 held silver and gold constantly to-
gethor Mt about tho mint ratio provided
for In the blmetallic laws. While the
ratio between silver and gold was fixed
through the operation of the blmetallic
laws. the exchange between sllver-us-
Ing countries and gold-uslng countries.
The III effects which followed the sew
erance OF the blmctalllc tie we will not
stop to cnumerlte.
As regards the criticisms which Mr..
Eckles makes OF the arguments for free
coinage, the principal point which the
writer wishes to make Is that Mr..
Eckles explains away the appreciation
In the exchange value OF gold.
Mr.. Eckles calls attention to the
great increase In this country OF bank
ing facilities sluce 1873. Granting 1t,
what does It demonstrate? Simply this:
The extension OF banks and clearing
houses has economized the use OF mon
ey and so helped TO keep general prices
from falling to where without this econ
omy In the use OF money they would
have fallen. In short, general prices
| W u lllNfH
extent had there not been In the United
States the Increase In the use OF banks
and clearing houses. In the future "A
nroportionate extension In the econo-
Milling OF money through the use OF
checks is not probable. Therefore. II
the gold standard is continued, the fall
in prices, so far MS this cause is con-
cerned, is likely to be greater than In
the past.
Furthermore. the tendency TO make
cash payments by those who do not
check against bank account is In
crenslng and should be encouraged.
Bat keeping cash on hand dlmlnlshos
the rnpidity OF circulation and so tends
to lower prices Same effect. Prof.
Marshall. advocate OF the gold stnnd-
ard. In his evidence before English gold
md solver commission. sec. 9GjgD
Another principal point which Mr..
| Eckles makes IL that silver Ia
now used very largely M money
In the United States. and that
France and tho other states
Of the Latin union and many OF the
other states OF Europe are using large
quantities OF silver. All this Ia tfiis-
but II does not alter the fact that In
Gold-s,nndard countries the measure OF
exchange value has nearly doubled In
the last eighteen years ms compared
with the twenty-five years preceding
1877.
AZ to the uSo Of silver NJ standard
money this is the third principal point
which Mr., EokolB consldora). II Is to
be noted that by 1857 not only gold
prices had fallen. but silver prices also
had fallen. though not TO no great mn
extent; they had Mt this time fallen 10
,a,. can, IEViJ,prn .al., ~. a..