The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1895-08-06


rrIces were az high In California as they
wers with "a Mexico has no psper
money. and yet wheat Is worth -
Al 30 Der bushei In silver. aud the eqt{1h 4
lent OF our gold prics for wheat n
where we have paper money repff
= Any one who denies the propo7is
that PRIMARY or real money alone IN
measure OF values is asked to coik<idefE
this: With relative production Of silver
to gold slncA 1873 not accounting for the
decline In silver since that year, why Is -
that silver Is worth only 90 cents now as
compared with 100 cents In 1872 And, Il
change OF our money measure TO che
gold standard has reduced the price,of Z
silver 30 per cent. what reason is there's
that it would not exert d similar intiu-
ence on other propertyf
Horr's rejonder was: ANY business
man will only need to look at she table
OF production OF silver and gold since 1873
to be able to ascertain that the law which
partially illustrated yesterday operates
in reference TO silver as well as in refer
ence to every other commodity. ~ Is
cheaper because the demand and the sup
ply are in such relations to each otheis-
that it makes it cheaper. just as wh~at
has been cheaper, and for the same rea-
son.
Prices are not governed or controlled
by the amount Of primary money In any
cbuntry or in the whole world, 30 far L
know Why, when we passed the law
of 1878 there was at that time only about
one hundred thirty-hve millions Of gold
in the country--ali the primary money
we had. II HE doctrine is true prices
should have been doubled Instantly. Alb,
but here Is the trouble with your mat--e-
MATES. If your doctrine is true every
product In this country should have been
reduced in price by this cheapening Of
silver"
Harvey said: "Silver Is not now pri-
mary money" and Horr went on: Sill
yer Is not primary money, and under bis
doctrine, because primary money has been
reduced In that way one-half, all prizes
should be reduced one-half. Have they
beenf Has corn deprecated that way
Has pork depreciatedP Has cattle de-
preciated that way2 Over one-half
of the farm products Of tho
United States are as high now as they
were in 1878 fact which could not be
true If his doctrine as to the appreciation
of the measure of value is true; prices
would necessarily be split in two NoRH
the difficulty Is articles are cheapened by
the processes of production. The price Ut
an article is always fixed by the absolute
cost of production-to the concern pro-
ducing IL, which does 1t at the highest
price at which it can stay In the business
after the price Is fixed
"For instance, we had been paying
years ago 81 a pound, and good d. i
more, for aluminium. 1t used TO cost.
hot In, Inc 70
pound of it, Now aluminium is without
limit in the crust of the earth almost. IL
used to cost SO much to separate it that it
was worth more than gold. Now we
have been cheapening the nproduocion of
aluminium until it is down to perhaps
40 or 40 cents pound. Now mark-when
some person (and 1t will be done) shall
discover method OF reducing alumtn-
INN so that it can be made for 10 cents q
pound the price of aluminium will not go
down to 10 cents a pound at first or any
where near it. The man making the dis
covery will hold the price up as high as
he can keep it, and that is always at the
highest point that it costs any OF the
men who still stay in the business to,
makeit."
In reply Harvey said he would fully
debate this question later sin it's prop r
place" but inst give you this to think
about meantime: Between 1850 and 1873
we had great era of improved facilities.
Even the harvesters were all invented
and in use before 1873, and yet prices were
rising. Improved facilities increased
constantly aud at the same time prices
were rising. II BIZ grains of silver is
now only worth % cents why is not tue
gold in the gold dollar only worth 90
cents, II you are right about your cheap
cost of production.
in 1851 alt the money In circulation
was per capita SIS % At that time all
money was primary money-the measure
OF values was paper money itself. In 1871
the per capita OF all money in circulation,
was SlS.l9, and all of it was primary
money. In 1894 we had per capita CIR
culation of primary and credit money
combined of $242S" The reason why
prices were not higher, as they should.
have been in 1894 than in 1872 was that.
OF the S24 per capita only 50 was primary
money, said Harvey.
Horn rejOined: II am very much sur
prlsed TO near my friend say that we were
getting along well during the years or
suspension OF specie payment when we
used entirely money that on its face had
TO be redeened. His definition Of primary
money was money Of redemption. Every
greenback has TO be redeemed to make it
good. 1t is not primary money"
Horr went on TO say that it was the old
green back cry that the whole business
hung on the amount per capita in circula--
ton, and intimated that Harvey would
have been Green hacker Horr did not
believe this doctrine; he believed the
quality OF the money had much Co do
with the matter. This country was
never more prosperous than from 1879 as
| told you yesterday. up to 1894 There is
not man living who oan take the statis--
tics and prove that we were not doing
we'll as nation during all those years. y
Horr then asked Harvey who were.
among the peoples Of the earth, followers
Of the silver idea, and enumerated China.
Mexico, the South American States. etc
saying that the most progressive OF those
peoples were adopting the gold standard.
Harvey denied the greenback impu-,
bation and declared he had never written
anything TO justify such an imputation.
The reason the civilized nations were
adopting gold was that they were being
triCkeQ, That WAS tha wav sha .x.,.,, y .