New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-08-12

iquently the whole world was on an e,
quail plane Of comp clifton.
But now prices in silyer-nsing scoun-
tries are independent to g great degree
! of changes IN the production of gold
just as they are in gold using countries in
dependent Exchanges in the production
7 of silver. And what's trne ofthe produc-
ton or supply Of gold and silver is also
| true of the demand. An increased de-
mand for gold in gold-using countries
has no effect on the demand for silver in
silver using countries, and consequently
though prices may rise in gold-uslng
countries, in sjlver-using countries they
may remain unchanged. So it is that
though gold has grown scarcer relative
ly to the increased demands thrown up
on it and consequently dearer, the pur-
chasing power of silver IN silver-using
countries has remained the same, so that
the only effect on silver using peoples of
the appreciation of gold has been to en-
able them to sell their products for a
smaller gold price, thereby undertaking
our producers and displanting our pro-
! ducts from the markets Of Europe.
Before 1878 the gold price of silver
was fixed, but prices of wheat and cot
ton previous to 1873,as of other produce,
did not, of course, remain fixed, but, a.
side from changes affecting peculiarly
the price of wheat and cotton, from year
to year, short crops, etc., rose as the sill
yer and gold of the world collectively
became more ple1tlful relatively to the
demand, aud fell :as the worlds stock Of
geld and silver became relatively scarce
and dear. But the silver price of wheat
and cotton in silver using countries rose
and fell, just as the gold price in gold
standard countries rose and fell for mon
ey in silver using countries became dear
and cheap; that IS, the purchasing pow
er increased and decreased in silver-us-
ing countries in conjunction with fuc-
tuations in the value of money in gold
standard countries, Consequently, the
producers in silver-using countries had
no artificial advantage in production ov.
or our producers and their competition
for the markets of Europe cut but small
figure.
But while both gold and silver we're
used jointly as money, prices were much
more stable, for they were compared to
a measure that was subject to changes
only as the result of an increase or de-
crease in the joint stock of gold and sill
yer in the world as compared to the de-
mands for money. Thus an increased
production of one metal was often e.
qualified by a decreased supply of the
other so that the effect on prices of
changes III production Of either of the
precious metals WAS minimized. But
now there is nothing to equalize the de-
mand for the two metals, the demand
for silver in silver using countries being
quite independent of the demand for
gold in gold-standa1d countries. Ccnse-
quently, the purchasing power of silver
varies without any connection with the
fluctuations in the purchasing power of
gold. ..=....4
There is, therefore, no longer any sta
bility of prices or exchanges between the
silver using and gold-using nations of
the world, and we have found, by bitter
experience, that while gold has appreci-
ated. silver has remained stable in pur-
chasing power. While prices have fai-
len greatly in gold standard countries,
! they have fallen in silver using countries
very little or not at all. So, owing to
the premium on gold, as measured in
silver, the silver-nsing people are able to
sell their products for one-half the price
in gold that they could before gold de-
manded any premium in silver. And
this fact has place them at great ad-
vantage in competition with the produce
ers of gold standard countries for the
cost Of production III gold standard
countries has not fallen by anything like
one-half since the marked divergence in
the value Of gold and silver first app
peal ed after the characterization of silver
in 1878 .5.
OF course our producers, when coming
into competition with the producers of
silver-using countries. have been obliged
to cut gold prices with the fall ilnsilyer
as measured by gold, OF rather the APP
probation Of soldsthat has enabled their
competitors to accept s smaller gol,
price. Consequently, our farmers and
planters have been i'm poverished, for
they have been obliged to sell their cot