The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1895-06-14

quantity OF the other; 11.61 grains gold
cannot equal 371.25 grains silver. One
half is not equal to the whole.
The conclusions so far reached have
been evolved from an analysis OF bull
lion price under free-coinage system.
For further argument, let us suppose
the free coinage of both gold and silver,
as prior to 1878; follow that with de-
monetization Of either metal, and brief
ly examine the effect on the price OF
the demonetized metal.
We have seen as to commodities that
an excessive supply is in effect de-
ficient demand, the price lowers.
Mr.. Morton, the secretary OF agri-
culture, has time and again lectured
the country on prices. He has told
how the law of supply and demand
is inexorable; how it exacted obedience
from gold and silver as truly as of the
products of the farm. Granted, If gold
and silver be demonetized.
Recently an editor of the leading
Democratic paper of New York city in
disputing the proposition that gold and
silver under a free-coinage system are
desirable chiefly to perform the func-
ton of money said: "The truth is that
gold and silver perform the function
OF money solely because they are desir-
able as commodities. Three-quarters
of all the gold annually produced, and
a large amount Of silver, are consumed
for manufacturing and artistic pur-
poses, and their power to fulfill these
purposes is what makes them valuable,
not their use as money"
If his assertion respecting the guam
tity of gold annually consumed
in the arts is true, is it not
likewise true that the demand
for such purposes is no greater
than three-fourths of the supply? Then
how about the other one-fourth? Sup
pose gold be demonetiZed. What will
be the effect of 25 per cent supply
in excess of the prevailing demand?
Will the honorable gentleman tell us
the effect on the price of our country
men farmers wheat should the United
States annually produce 500,000,000
bushels, against an annual consump-
ton of only 375,000,000 bushels, with
no outlet for the 125,000,0OO bushels
surplus? Wheat would become a drug,
would 1t not?
We hardly need the honorable secre-
tary's advice on this or other like agri-
cultural boundaries. Yet, II not, OF
what use is the honorable secretary in
his honorable place?
Tho tocly tho nrocfdapt hoe cot n i'm 10
much too big for him. Not but what
we value highly the merits of the Sec
rotary. Out here we think Morton a
bigger man than Cleveland, figurative-
ly; mortal, however, we may presume
he is. And, therefore, quite unequal to
Kidding the farms of the country of
what he technically terms heresy, finan-
cial heresy, the vulgar name being 16
to /.
Had gold suffered demonetization to
the same extent silver has, the price
Of gold bullion would have been senslbly
lessened. That conclusion is forced
upon us. We believe it, we must believe
1.-THE honorable secretary to the con-
trary Notwithstanding.
Silver was demonetized. The annual
production of silver exceeded the de-
mand for manufacturing and artistic
purposes. The minis no longer supplied
an unvarying demand for the excess.
Universally and constant demand was
lost. Nothing remained but the bare
commodity demand. The price o. sill
yer fell.
Such, l take 1t, is the true answer
to Mr.. Phipps' question: Why is the
bullion worth of a gold dollar more
than the bullion worth of a silver dol
lar? w. G. SEWARD.