Rocky Ford enterprise., 1895-07-18
II the United States concludes I,

II the United States c0ncludee 10
treat silver as 1t treats gold. namely,
give 1t free coinage and at 16 to l, the
result will be that all our gold will be
cast into the European countries, thus
cheapening gold by raising gold prices,
the place which gold occupied being
taken by silver drawn from the silver
using countries, thus enhancing the
value of silver.
We hold about one-seventh of all the
gold money in the world. By casting
this OF and drawing from the silver
using countries enough silver to supply
its place we take about one-third of all
the silver money in circulation in sill
ver-standard countries. This will
doubtless re-establish the ratio Of 16
to or 16H to 1, which is practically
the re-establishment of the bimetallic
standard throughout the world, thus
making them one metal for monetary
purposes. Previous to 1873. when the
ratio between silver and gold. was con-
stant at about the legal ratio, fuctua-
tion was half point each side OF 15h
to 1.
II necessary the United States can
withdraw from its circulation the ma
tional bank notes and let silver certif-
Gates take their place, and can, In fact,
go further by Withdrawing all the
United States notes until such time as
they may be reissued and the ratio OF
16 to 1 be undisturbed.
This additional use of silver, COM
bined with the amount which takes
the place of gold, would make the total
additional use of silver by the United
States about 81, 300 .OOO.O0O or one-half
of all the silver money outside the
gold-standard countries. The silver
In the gold-standard countries Is mint
ed at 15 1-2 to 1, or 15 to 1, and SO will
not come to the United States with its
16 to l law, unless a gold-standard
country enacts law to give up its
silver, and this is not likely in the face
of the bimetallic sentiment In all gold
standard countries, besides. our law
can prohibit the importation direct or
indirecD of silver from gold-standard
countries.
1t is believed that when the United
States makes the start 1t will not be
obliged to exert Its full strength, for
1t will not be alone in securing a re-
turn to bimetallism, for there are
several American countries which can
assist by enacting bimetallic laws,
thereby throwing their gold into Euro
pean countries and SO helping to secure
the re-establishment of the 16 to ratio.
Furthermore, before the United
States, II acting alone, should have
drawn to herself anywhere near the
amount of silver above stated, the low
cred prices for articles now exported
from silver-standard countries would
result, as to many Of them, In their
production being improbable as COM
pared with their other productions; and
with lessened supply from the silver
using countries the price in goid-using
countries would rise above them as
compared with other commodities in
such countries. This applies to cotton,
wheat, corn, oats and other grains.
During the past years these products
have been unduly lowered in gold
standard countries through the fall in
the ratio between gold and silver;
reversal of policy would for time give
them an advantage. As soon as the
prices Of articles of trade between gold
standard countries and silver-standard
countries become such that sixteen and
one-half ounces of silver will purchase
as much as one ounce Of gold then the
bimetallic standard is assured.
Another important factor in the re-
establishment of the ratio of 16 to Is
the fact that in the countries wherein
the money power has not yet secured
the establishment Of the gold standard
changes in price take place slowly,
owing to the habits of the people and
the absence of Information. This will
result in silver coming out of those
countries very slowly, and thus the
great demand created in the United
States not being quickly met will re-
suit in silver soon reaching an ex-
change value of 16 to l.