The herald., 1895-06-29

Utility and value are only accidents of
a thing arising from the fact that some
one wants 1t. The same Subtance may
rise and fall in value at the same time.
If in exchange for given weight of gold
| can get more silver but less copper than
l used to do, then the value of gold has
risen with respect to silver, but fallen
with respect to copper. 1t is evident that
an intrinsic property of thing cannot
both increase and decrease at the same
time; in fact, that it cannot change at
all; therefore value must be mere rela-
tion or accident OF a thing as regards
other things and persons needing them"
If, then, gold and silver have no intrin-
sic value, bu, like all other commodities
their value is regulated by the law of
supply and demand, it necessarily follows
that If we increase the demand for either
of these metals its value will advance.
There never was time in the history
of the world. prior to 1873, when the ratio
between gold and silver exceeded 16 to /.
Since that time there has been constant
and rapid divergence between these met
ais.
What is the occasion of it? The gold
standard men tell us, first, that the in
trinsic value of silver has fallen; but rec
ognizlng the absurdity of such PROPOSE
tion, they say that the production
of silver may have had something to do
with it.
The Encyclopedia Britannica, vol. "a,
p. 81, says: "It is of course tundeniable
standard coin will be equal to the same
amount of bullion, and, conversely. that
the bullion will be equal in value to the
same amount OF coin.'
Here you have the whole secret in
nutshell, viz. That if 371T grains of pure
silver can, without expense to the owner
thereof, be coined into dollar that when
coined will be legal tender for all pur-
poses. then 371M grains of pure silver will
be worth as much uncoined as it is
coined. And if it has the same protec-
tion under the law that gold has, IN
other words. if it is full legal tender for
all debts public and private, and has the
same coinage facilities, it will be equal in
value to gold at the ratio fixed. upon the
familiar principle that things equal to
the same thing are equal to each other"
Prior to 1873 most of the commercial
except England, used silver as one of the
money metals at ratios varying from Is
to to 16 to /. both metals having the
same protection under the law at the
ratio fixed. With such laws in force it
was impossible for there to to be any con-
siderable divergence between the metals;
they could not fiuctuate more than six
teenth, that being the limit of the ratio.
But in 1873 a war was commenced by
the money kings of the world against sill
yer and several prominent powers have
been induced to discontinue the.coinage
of silver, and these nations are now bid
ding against each other for gold for
national resere. The demand for gold
has thus been largely increased and con-
sequently the value of gold has advanced
in the markets OF the world. Gold has
doubled in value since 1873. 1t will take
twice as much commodity. twice as
much of the things that are usually
bought and sold for money to buy dol
lar in gold now as it would in 1878.
Again, Mr.. Widney says: That in ut
ter disregard of all such efforts G.e. efforts
to fix the value or ratio OF gold and sill
yer bullion by legislative enactmenD the
gold and silver that represents by law a
dollar sails serenely above or below the
abstract ideal dollar and towards or
away from each other.'
Now any person who has paid any at
tention to the history of financial legisla-
tion, or who knows anything about even
the elementary principles OF political
economy knows that the above propo-
sition is not true. If the lax provides
that 1873 grains OF standard gold shall. on
the demand of the owner, and without
expense to him. be coined into dollar,
and that the dollar, when so coined.
shall be legal tender for all debts public
and private, then 25.S grains of standard
gold bullion will be worth as much as
25.S grains in gold coin; no more, no
less. II the Law provides that 412l< grains
Of standard silver shall, on the demand