The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-05-08
HOW IS THIS?
Silver Rises and Wheat
Rises.
RIsEIN PRICE OF
SILVER, COTTON AND
WHEAT.

yer sentiment, the Philadelphia Ledger
urges the necessity for active work on
the part of the old-monometallists to
"dislodge the impression" that the fall
in silver has caused a ruinous fall in
prices, and that the only remedy for the
continuous fall is to be found in the re-
nonetization Of silver. The Ledger de-
G!ares it will take time and effort to
'dislodge" this growing conviction, hut
It adds that by the circulation of Sound
money" literature and the influence of
sound money" newspapers and capable
speakers it can oe GcDe.
In conclusion, the Ledger says that ga
rise in the price Of farm COM uodities
refutes the theory that governmental ac-
ton with regard to silver keeps prices
at their present level. Cotton has risen
recently; so has wheat; so also has beef
The fluctuations in prices show that
causes other than the relation OF silver
to the currency effect business affairs"
Here we find the rise of cotton and
wheat referred 10 as REPUTATION of the
fact that the fail in silver caused fall
In the price OF ali staple commodities,
but the Ledger neg,ects to mention the
rise In the hui!ios. price of silver COIN
cident with tbs rise of cotton and
wheat. Instead Of proving that tbs tail
in silver is not related to the fall in
prices, the. recent rise in cotton and
wheat only adds further proof Of the
fact that the price of silver controls the
price OF wheat, cotton, etc. Silver falls,
wheat and cotton fail; silver rises, wheat
and cotton rise. This has been invari-
ably the case. 1t is not merely coinci-
dent; it is a necessity
When silver falls it causes a fall in
exchange with silver-using countries:
when it rises it causes rise in exchange.
In 1873, before the Recommendation of sill
yer, and when silver was at par with
gold, not at our ratio Of Is to l, but at
the French ratio of 1914 to l, the Indian
rupee was worth shillings, the Mexi-
can dollar was worth it's face value as
bullion. Then Indian wheat was worth
10 shillings hundredweight at Bombay
about $1.38 per busheD, and Mexican
wheat at Mexican ports was worth ap-
proximately the same. This wheat could
be laid down in London at about II shil-
lings pence per hundredweight (about
$l.7O per busheD. AS silver was dis
placed as money it fell in price, and ex-
changes with the silver-using countries
fell with it, until now rupee exchange
fluctuates at l shilling instead of 2, and
Mexican exchange at so cents instead of
par ($D. What is the result? Silver
prices in India and Mexico have remain
ed approximately the same for the last
twenty years. The Mexican and Indian
farmers can afford to lay their wheat
down in London at one-half the rates
lin gold) prevailing in 1873 Exchange
has fallen SO that the Englishman can
buy double the exchange with the same
amount of gold in 1895 as he could in
| 1873 and yet when the Indian and Mex
lean converts this exchange into silver
| he can purchase with the proceeds as
We mention England because we send
! our surplus product of wheat and cotton
| to Great Britain for market, and the
price we can obtain for the surplus fixes
| the price of our whole product less the
| cost Of transportation. There our pro-
ducts come in competition with those of
silver using countries. We measure our
products in gold, and o:,y exchange with
England consequently remains at par;
| but we must sell our cotton aud wheat
| at a fall in price equivalent to the fall
| in exchanges between England and the
| silver countries, consequently the price
we obtain for our cotton and wheat in
| England must fluctuate with the fall
and rise of exchanges with the silver
| using countries.
An ounce of silver will buy as much
as ever in India or Mexico or Argentine
VITA of oilxxo2 tho erli