The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1895-05-15
THE LOST LEADER.

Wow dpptdIb III bnlS lnSuo VI Iuc NhNo.
Our readers know the high esteem in
which we have always held Ex-Governor
Buckner. But the views OF this question
which he has adopted will come as a sur
prise and sorrow TO his many friends
all over the State. His views do not APP
pear to be newly made, but newly found
1t is obvious that his excursion into the
field OF financial research has been recent,
and he seems to have been more occu-
pied in covering the ground than in
reaching the roots Of present conditions.
lie travels back to Genesis for authority
found in the records OF Abrahams
wealth, when money, as we now under
stand it, was unknown-when wealth
was computed generally, as 1t was for
centuries later, in cattle. He states that
Adam Smith shows that the value of
gold and silver is based "upon the labor
cost of producing them," but neglects to
give any reference TO the book or page
in which adam Smith shows this, or to
state the manner in which it is shown.
Until now we had supposed Adam Smith
ascribed the value of gold and silver to
the law of supply and demand, and we
shall be obliged to the Ex-Governor for
reference. lie comes home TO base by
way OF Copernicus, Oresme and Jack
Cade, also without giving any reference.
1t is doubtful whether a man or even the
ex-Governor's learning has examined or
read the little tract of the learned Bish-
op Oresme, who hourished in France
about A. d. 1885, and we are constrained
to believe that the Ex-Governor gets this
authority, as we do, second hand, and
has perhaps been misled by quotation
therefrom, found in recent English f.
nancial publication. 1t is impossible TO
review the entire paper in this issue, and
we shall merely point out few Of the
ex-Governor's failures in apprehending
this tremendous question. 1t was not to
be expected that the Ex-Governor would
fall into the delusion that the value OF
gold and silver is dependent upon and
measured by the labor cost of their pro-
duction. This fallacy has often been ex-
posed. Gold and silver, even as mere
commodities, are, in this respect, unlike
other things. 1t is not entirely true Of
any commodity that its value may be
measured by the labor cost of its produc-
ton, and as to gold and silver it is al
most wholly untrue. The reason is that
the supply OF precious metals is limited,
and however, much labor may be en-
ployed in their production that limita-
ton still exists. 1t cannot be said OF the
precious metals that any amount Of labor
will produce any definite quantity, and
moreover as they are not consumed year
by year, but constantly accumulated, the
cost OF years production has little ef-
feet upon the vast accumulated store
which is the result of the labor OF all
former years.
1t is the law Of supply and demand,
rhetorically denominated "inexorable"
by the Ex-Governor, which regulates the
value OF these precious metals, OF which
there has always been limited supply,
and for which, 80 long as the minis of
the civilized world were open to them,
there was always an unlimited demand.
The demand for both gold and silver,
Unfortunately, arising from their in
discriminate use as money prior to 1873
practically, AT ail times, maintained the
ratio fixed by law. The demand for sill
yer for coinage was, about that time,
recklessly or feloniousy destroyed. In
stantly, as soon as this demand was with
drawn, the price Of silver ard OF every
other commodity measured in gold be-
gan to fall, and has continued to fall. 1t
is inconceivable that the Ex-Governor
should attribute this fall in the price
of silver TO diminished cost OF product
ton, and have fallen into a sneering
reference TO the effort 70 restore this de-
mand, and therefore the former value OF
silver, as an attempt to make 80 cents
equal TO 100 cents.
The Ex-Governor asserts that the idea
that the stamp OF the government upon
the metal gives it any value is a mere
Populist fallacy. II this be 80 wherefore
put the stamp OF government on gold
and deny the stamp TO silver? Where
fore did silver fall in value, as measured
in gold, the moment law was passed
denying the privilege Of mintage to it
No one denies that silver at 10 TO | was
worth at least as much as gold when the |
law demonetizing silver was passed. 1t
would have been instructive il the ex-
Governor had stated 10 the people OF
Kentucky the patriotic motive which |
prompted the passage OF that act, and
also in what way it's passage was in
their interest.
The Ex-Governor seems over-concerned
about the advantage which would result
10 silver miners from free coinage. and
deplores the alleged bounty 10 the silver
miners under the Bland-Allison and
Sherman acts. Does he forget that there
are gold miners? Was the act Of 1873
passed in the interest Of gold miners,
with the purpose Of putting the advanced
values resulting from the exclusive coin
age Of gold into their pockets? Is re-
monetization OF silver objected TO In the