Pine Bluff daily graphic., 1895-06-02

Characterization of silver reduced prices ia founded upon the assumption of a fact " hieh cannot be estu blished. They have wholly Jailed to alIeee, much l-ss to prove, that silver actually constituted any part of the redemption money in uge or in existence in tbis country before ct the tims of that Legislation. If it did nut, then 1t ia clear that its legal demonetization did not and gould not in fact reduce the amount of such money m this couStry, and therefore can not have reduced prices.
 NO SILVER CIRCULATION IN '73.
 1t ia well know pcrtoHaily to every gen stleman in this audience VI 0 was old enough so know what was tranapirng ia 1873 that there was not dollar of silver In circulation at that date. The assumption upon which the arg gument is hasad is diam critically oD- posed to the historical and off cial fact The only metallic or redemption money in use here at that time was gold which amounted fo only $t86, 1000, 900, including what tho government using, whereas we now have about S626, 900, O0Oin gold and $397, 662, s78 In full legal tender silver, besides about SIT ,000, 900 In subsidiary silver cotn. s ii, therefore, prices have fallen since 1873, the decline has taken place in spite of the fact that our fall legal tender metallic money has been increased until it now amounts to more than seven times much az it did at that date, and consequently the alleged de c1ino in prices must be attributed to some other cause than the demonetization of silver. These facts prove not only that the dem monetizati0n of silver d!d not reduce the amount of redemption money in thia coun try, but they prove also that the funda mental proposition of the advoeates of free coinage ie erroneous and that prices are not fixed or re8uihted by the amount of redemp- ton money alone, for, if so prices should have increased since 1873
 ON FLIMsY FOUNDATION.
 substantially tte whole argumepE for free coinage. so far es 1t ia addressed to the honest people of the country is based on this f1imsy foundation, upon an erroneous ptinci- pie and upon falRe assumption of facts That the amount of money iu circulation or available for circulation has moro OF less influence upon the prtteH of commo ities ie not disputed by anybody, but 1t Is not the amount of metallic redemption money aiOne that exerts this influence. If all other conditions remain the same. if the relation between supply and demand are unchanged, S II the cost of production, transportation and financial exchanges stable an increase For decrease Of tue curreney in circulation, or #RV aflable for eIcuiation will, 0 q certain eK- zfent, increase or decrease prices, as the casa smay be .but bY tte trrms Il. oney and cnrren- @ry' fn this connection, 1 meHnevery element l#tha6 enters into and Is utilized tn the com 2plieated prucesa.s of buying and selling $ In the markets for products and In the mer- 8canttie exchanges, whether ii be gold, silver bank notes. United States notes. bills or zsother forms of credit, written or unwritten. sCrelit or confidence ia en element Of far grentfr importance ln fixing ar upholdina prices than the mere amount of actual money in use, or available for use; and. iu 8fact. about o5 neI cent of the entire business of the country is transacted without the act aal use of metallic money. CT it's paper repre- sentaiiven; and as to met allie m oney it self
 y hether in geld or silver, it is not used to the extent of more than 1 per cent in our buB ness tranBact,ona.
 z WHAT REALLY FIXES PRICES.
 # In view of these facts, N hieh are as " ell es- tabiished as any other facts relating to our 7eomnerciai Ind financial operations, how hbsnrd 1t fs to tontend that prices are fixed by the amount Of fthat particular kind oi cur xency which does not constitute more than s9ne-hnndredth part Of the whole. In tho sRro adest and most comprehensive sense, tine husiness capacity and personal integrity oi 1eSh Individual constitute part of the