Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1895-06-03

dollars of full value in the payment
of debts due to them from their own
felIow-citizens or subjects of other
countries. 1t is not proposed that
the citizens or subjects of other coun-
tries with whom our people trade
shall be compelled TO receive these
silver dollars in their transactions
with us because that can be done
only by international agreement, and
our impatient free-coinage friends
declare their determination to pro-
ceed at once independently of all
9th er governments. All who are in
debted to US are, therefore, to have
the privilege of paying in deprecated
silver, while all to whom we shall be-
come indebted are to have the prfvi-
lege of requiring US to pay in gold.
Many nations in Europe and other
parts of the world have subjected
their people to great loss and expense
by their adherence to monetary sys-
TENS based upon the theory that a
double standard could be maintained,
but in no case have they succeeded in
keeping the coins of the two metals in
use at the same time, except for very
short periods. Both being legal ten
ders, the least valuable coins will al
ways be used in making payments,
and will become the measure of val
ue in the exchange of commodities,
and consequently the more valuable
coins will be boarded or sent out of
the country into a market where
their real value will be recognized
If this should be the result, the free
coinage of silver would not for a
long time add anything whateYer,
even nominally, to our stock of
money. On the contrary, the imme-
diate effect of such a policy would
be contraction to the extent of fully
one-third CT our present volume of
currency by the expulsion of s625,-
600 600 in gold, and it would require
more than fifteen years to supply its
place with silver dollars, even if our
mints coined nothing else.
While, therefore, it is not at all
certain that free coinage would ulti-
mately make any considerable addi-
ton to our circulation, it is absolute
Iy certain that it would give us de-
preciated and fuctuatlng currency,
and the question is whether the pro-
ducers of cotton, wheat, corn, beef,
pork, oil, lard, cheese and other ex-
portable articles will be benefited or
injured by such result. 1t is an
axiom in trade that the prices of ex
portable products are fixed in the
foreign market where the surplus is
sold and are fixed in the currency of
that country according to its nominal
valu there. The establishment of
silver standard here could not pos
sibly increase the price of cotton or
wheat or any other American pro-
duct in Liverpool, London, Paris or
Berlin, whatever effect it might have
upon the nominal price in this coun-
try. The only effect at the present
market ratio of 80 to would be that
the exchange would be doubled and
the pound sterling, iustead of being
S4 ,S66 in our currency, as it is now,
would be worth Sc, 1872. But the ex-
change would be in a constant
change of fnctuation, just as it has
been between Great Britain and In
dia on account of the changes i'll the
prices of silver from day to day; and
the American producer would be
| compelled to pay for the risk taken
on account of the fluctuations by re-
ceiving a less price for his cotton,
wheat. beef and other articles. The
exporter will not take the risk him
self. He will save himself by giving
the producer lower prices for his
produce.
Labor, the greatest commodity in
the market, has advanced 81 pei
cent since 1860 and 8 per cent.
since 1878. Food is also higher
If the reductions of price were all
due to one cause.-the appreciation
of gold-the reductions would be un-
form, whereas in fact they vary with
different groups of articles. Farm
ers' products will now buy more OF
other commodities than in 1973.-
The fall in cotton and wheat can be
explained as due to excessive pro
duction. But 2, ,974, 351 bales of cot
ton were produced in 1972-'73, as
against nearly 10, 900, 900 in 1894-'5.
The wheat crop of 1894 was 460,-
267 ,416 bushels, against 249, ,997, lOC
in 1872. There has also been q
vastly increased production in COM
peting countries.
Free coinage as a means of repu-
dating debts would hurt as many as
it would benefit, to say nothing OF
the immortality of the thing. Most
people are creditors as well as debt
| ors. They have money coming tc
them from savings banks. insurance
companies, beneficial societies, &C.,
and would lose heavily if paid in so
cent dollars. But great govern
ment should do nothing to vitiate. OBJ
legations. interrupt business and
bring the country to disaster.