The record-union., 1895-05-22

CilHeQ lille more tnan ono cent per
ounce per month average. In October,
1898, the buying was stopped by the re-
peal OF the Purchase Act.
THE CAVALRY PUT TO FLIGHT
Now this result is exactly the opposite
of what "Coin" taught Walsh and his
other victims to expect when he spoke Of
the Government buying cavalry horses.
Why did the price OF either decline when
the Governments purchases increased?
Because the supply increased also, and
because the public knew that the pur-
chases must stop some time, just as pur-
chasos OF cavalry horses stop sometime.
The supply of cavalry horses would in
crease in like manner otter while. 1t
takes five years to produce cavalry
horse. During tive years we might ex-
pect u considerable advance in the price
OF horses II the Governments purchases
were steady, but at the end of that time
the supply would equal the demand and
the price would fall back TO tho place of
beginning.
Really the figure of speech adopted by
Coin" is deceptive In another way.
Free coinage, which he aims at, does not
imply any purchases by the Government
at all. Therefore, all his talk about the
Government buying cavalry horses is
fustian
This is suitable place, however, to say
that free coinage OF both gold and silver
does not create an unlimited demand for
both metals. 1t does not even change the
pre-existing demand, except for one pur.
pose-that of paying pre-existing debts.
After this temporary purpose is achieved,
then suppOsing that the ratio is really
effectual and that the two metals are at
parity in the market. the general prefer
ence for gold. arising from its convenience
in all commercial transactions which call
for the use OF money metal, will be as
strong after bimetallisin as before. Banks
and individuals who have to transfer
metal and to store it and take care Of it.
extra cost of handling silver, and when a
premium is paid for one Of the metals BIZ
metallism no longer exists.
This ls on the suppOsitiOn that the ratio
agreed upon Is so near the market ratio
that we ''start fair" That ratio would be
about 80 to l. If we do not start fair we
shall stumble at the first step. There will
be an Immediate grab for gold, and BIZ
metallism will be dead before it is born.
But. 1t is asked, what could anybody do
with gold except to pay his debts with it?
He could use II to make new bargains on
a gold basis. 1t is admitted that the law
can compel people to take silver or cop
per or anything else for past debts. Our
history has made many Iamentable ex-
amples where the law compelled people
to accept much less than they had bar
gained for-continental money, for ex-
ample. But it is firmly denied that the
law can compel people in this country TO
make future bargains in silver ii they
prefer to make them in gold.
Continuing this lecture, we come to the
following statement (p. 52l:
''The characterization ofsilver DESTROYED
One-half of the redemption money of the
Init fnH fof Il = IA:
making gold the unit and closing the
mints to silver, it lessened the demand
for silver. and its commercial value at
once began to depreciate, a. measured in
gold"
The decentralization of silver did not
destroy dollar of redemption money,
because there was none at that time of
either silver or gold. There can be no
redemption money without REDEEM ption.
Even If we had been redeeming our
greenbacks at that time, we should not
have redeemed any with silver, because,
as "COin" tells US on page 10:
AT the time the United States demone-
tized silver in February, 1873, silver, as
measured in gold, was worth ii o2"
Is it likely that the Government would
have bought silver at per cent. premium
to redeem its greenbacks with, when il
could redeem them with gold at par?
That is what "Coin" wants his scholars
to believe.
''Here Mr.. Walsh arose again, and
Coin paused to hear the question" o, "a.
This seems to be the proper place to in
sert MIR. Walsh's denial that he ever
asked any questions:
CHICAGO, April 1lth.
TO the Editor of the New York Eveainq
POSt-SIR: am very glad that your in
quiry OF April 9th gives me an opportu-
nifty to correct any misapprehension that
might be caused by the use of nv name
in the book called "Coin's Financial
School," l never attended any of the
lectures referred to in that book. and,
therefore. could not have used the lam
guage with which l am credited.