Alma record. (Alma, Mich.) 1878-1928, 1895-09-20
GOLD AT PAR WITH ITSELF

make much of the fact that gold bull
ion is at par with gold coin, and to ig-
more the fact that it is the right TO free
coinage that makes the bullion IN our
gold CONS worth as much as commo-
dity as when coined. The fact that
the minis are open 10 the unlimited
coinage of gold makes bullion the
equivalent of coin and it fixes the
price of bullion in coin and of coin in
bullion, Thus, the price of a gold
dollar in bullion is always 25.S grains
of gold, and the price of 25.S grains of
gold in coin Is ever 100 cents. Since
silver was demonctized the purchasing
power of gold has increased greatly.
Gold coin and gold bullion have APP
preciated together.
Silver bullion does not bear the same
relation to silver coins in gold-using
countries as gold bullion does to gold
coin, and because the bullion in silver
coins is not worth as much as a COM
modify as when coined, gold-mono-
metallists tell Us silver is only tit for
token coinage and is not suitable for
standard money. They point to the
fact that the bullion and coin value of
silver have fallen apart, but ignore the
reason. They do not stop to consider
that the parity of gold bullion and coin
is secured by privileges granted to gold
but denied to silver.
Treat silver like gold, that is, freely
convert bullion into coin without limit
and at once the parity between silver
bullion and silver coin will be assured,
as it is between gold bullion and coin.
Gold possesses no inherent qualities
that give it stability of value, and that
the bullion in the dollar is worth as a
commodity 100 cents is due to the fact
that bullion can be freely converted
INTO coin, to this and nothing else.
Suppose that il view of the increased
production of gold in the Transvaai,
the United States, England, France and
Germany should decide to limit the
coinage of gold to some hundred thou
sands Of dollars a day, bought ard
coined on government account, what
would happen Would the value of
gold bullion in gold coin still equi as
commodity the value of the CONS:
Certainly not. The owner of gold bull
ion having no longer the right to con-
vert his bullion into coin, surely and
without delay or cost, and desiring to
realize on his bullion. must seek a pur-
chaser. But purchaser for the bull
ion at par with coin cannot be found,
for the purchaser must be recompensed
for the delays and risks he assumes ia
purchasing the bullion. Immediately
all gold bullion would become simply
merchandise with a fluctuuting aud
speculative value measured by the gold
coins in circulation, depending on three
circumstances: First, the production
of gold second, the extent Of the limit
ed quantity of gold accepted by the
minis for coinage, and third, the de-
mand for use IN the arts. The supply
exceeding the demand for coinage. the
excess would press for sale on the
bullion market, and TO the extent this
supply exceeded the demanded for use
in the arts, the price of bullion would
fall.
This is what has happened to silver.
It's market has been curtailed while the
demand for gold has been broadened.
The only wonder is that silver has
maintained its value as well as it has.
1 he demand for silver in the east has
been almost, if not quite, sufficient to
maintain it, value, not of course in re-
lation to gold but compared with other
commodities. II is not SO much silver
that has deprecated, for, measured in
anything else but gold, silver has fallen
very little, as it Is gold that has appre-
ciated.