Middlebury register. (Middlebury, Vt.) 1886-1937, 1895-05-17

founded upon conception of coined
conception to which no economist will
give support. 1t is now generally con-
ceded that gold and silver, when admit
ted to the minis without limitations, do
commodities. In the first place, the
money use creates constant demand, as
the demand for money equals the sum of
all commodities offered for sale. Such
thing as overproduction in metallic
money so as to cause an immediate fall
ing off in value is impossible. The pro-
ducuon of the precious metals in any
one year is but a small fraction of the
total existing supply and the influence of
production has an effect on value only
gradually, and extending through long
term of years. The gold and silver
money of the world is estimated to
amount to about $4,000 200. The
production of the two metals in 1893.
coinage valnc. was in round numbers
$3.50, 600, 600; less than } per cent of the
existing stock of money.
Now, when we consider that, at the
lowest estimate. at least three-quarters
of the annual production are used in The
arts and manufactures, we see that the
worlds metallic money was increased
cent. 1t should be remembered. also.
that although we regard the precious
metals as indestructibe, they are not
practically so. The late DR.. Soetbeer,
an acknowledged authority, estimated
that the gold money in the world in
1890 was but little. if any. more than
two-third- of the gold produced since
1850. That is to say, the worlds stock
of gold coin in 1890 was not equal, by
one third, to the production of the pre-
ceding forty years. What has become
of the stock in existence i'm 1850, to say
nothing of the one-third of the forty
years production? 1t has been absorb
ed by the industries, worn out and lost.
Silver, too, disappears, and in all calcu-
lations these facts must not be over
looked. We have to note then that even
phenomenal variations in production, Of
either gold or silver, have hardly an
appreciable effect on the supply Of
money \ continued increase or de-
crease in the aggregate of the two
general rise or fall of prices. In the
twenty years between 1850 and 1870
gold to an amount equal to the whole
money stock in 1850 was produced, yet
prices advanced only IS to 20 per cent,
and that too, though for a part of the
time the production of silver materially
increased. 1t is thus evident that
whether the production of silver be
s50,0OO,O0 or S2O0,000,000, the quantity
which would reach the minis would be
too small in comparison with the exist
ing stock of coin to have any effect on
prices directly. The ratio would be as
easily maintained with one sum as with
the other.
Those who assert that a ratio cannot
be determined by law are without eX-
ception in favor of the continued use of
silver in subsidiary coins; for even the
most ardent admirer of gold must adj
nit that it is not fitted for small pay
ments. Yet subsidiary coins have their
value fixed by law; that is, a ratio is
established. As at all times, and pur-
poselv, the value given to the coin is
greater than its metal value, its value
as money is creation of law to a great
er or less extent. Every subsidiary sill
yer cola in the world is Il witness to the
fact that law establishes and maintains
a ratio between gold and silver. If the
silver dollar is dishonest, what shall we
say of the half dollar. which contains
less than half the quantity Of silver:
Yet no one of the phllanthropists of
Wall street, who have assumed the duty
of protecting the laborer from an inun-
dation of cheap money, has been heard
to lift his voice in protest against the
cheap half dollar. The double standard
is not only practicable, but it is the
only standard by which a stable and
equitable monetary system can be main
tanned. 1t makes the two metals sub
stantialy one money, with which the
business of the entire world may be
transacted without friction or shock.
This thought is well expressed by Hon.
William NJ. Evarts, the eminent lawyer,
of New York: "All questions of stand
ards, one or two, are but a form ana
mode by which we may reacn what we
desire-One money. | insist, and chal-
lenge refutation, that at bottom the
theory of gold standard is the theory
of two moneys. 1t is the theory Of dis
cord between the two metals"
JAMES ii. TELLER.
HOW TO PROTECT CLOTHING
FROM THE MOTH.