Rocky Ford enterprise., 1895-07-18
BACK TO OLD RATIO.
SILVER UNDER FREE COINAGE
/ WOULD SOON INCREASE.
Outlining tho Forces Which May Be
Expected to Work Together to Re
EstabIi.h Former Comparative Values
of the Two Metals.

George H. Sebley in Chicago Record:
The stand The Record has taken In
publishing both sides Of the money
question is praiseworthy 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 10, Mr.. James H. 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 free 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 BIZ
metallic law for the United States at
16 to 1, but many of the arguments ad-
vanced by both sides do not really touch
the question at issue, except as they
show what motives have actuated legis-
lation in the past and the monetary
principles to be observed in deciding
upon remedy.
The principal fact which character
ICES the gold standard as 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
OF ha
exchange value in the gold-standard
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 1867-77, which Is
the average of the twenty-five years
ls53-77 (Sauerbeck's table Of prices,
March number of Statistical Society's
JournaD. Forty per cent is 66 2-S per
cent of 60; in other words. the exchange
value of gold Increased 66 2-8 per cent
as compared with the periods above
mentioned. In the United States the
increase has been fully rs per cent. (See
senate report on Wholesale prices and
wages for fall in prices to 1922
The far-reaching effects of this appre-
citation of the measures Of exchange can
only be realized when its effects are
considered in detail; one of the prin-
cipal effects of falling prices is to dis
courage production; lessened produc-
tion 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-
er very important fact Is that where
prices are fixed by law, such as street.
car fares, gas rates, ETC., the exchange
value of the price so 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 i'll effects
which have followed as result Of the
severance of the tie which previous to
1873 held silver and gold constantly to-
gether at about the mint ratio provided
for in the bimetallic laws. While the
ratio between silver and gold was fixed
through the operation Of the bimetallic
laws, the exchange between silver-us-
ing countries and gold-using countries.
The Ill effects which followed the sew
erance of the bimetallic tie we will not
stop to enumerate.
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.
/ C11r ntt 10 hn
great increase in this country of bank
ing facilities since 1873. Granting it.,
/ what does it demonstrate? Simply this:
The extension of banks and clearing
houses has economical 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
would have fallen to a much greater
extent had there not been in the United
States the increase in the use of banks
and clearing houses. In the future a
proportionate extension in the econo-
MIXING of money through the use Of
checks is not probable. Therefore, II
the gold standard is continued, the fall
in prices, so far as 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
creasing and should be encouraged.
But keeping cash on hand diminishes
the rapidity of circulation and SO tends
to lower prices. Same effect. Prof.
Marshall, advocate Of the gold stand
ard, in his evidence before English gold
! and solver commission, sec. 9659)
Another principal point which Mr..
Eckles makes is that silver is
now used very largely as money
in the United States, and that
France and the other states
of the Latin union and many of the
other states of Europe are using large
quantities of silver. All this is true,
but it does not alter the fact that in
gold-standard countries the measure of
exchange value has nearly doubled In
the last eighteen years as compared
with the twenty-five years preceding
1877,
AS to the use Of silver as standard
money (this is the third principal point
which Mr.. Eckels considers). it is to