The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1896-10-17
HOW PROSPERITY WILL COME.
Bimetallism VIII Steady Prices Keeping
the Two Metals Together.


from the Cincinnati Enquirer.l
Crystal. ". d., with thousands of
others, should like 10 be enlightened
upon the following questions:
1. Through what channels will pros
perity come in the event of free coin
age2
?. What laws will preserve the
equality Of the two metals?
3. What viii be the effect on foreign
silver and what viii prevent specula-'
tien in foreign silver by having it
coined into American dollars2
]. L. CARR.
1. The fundamental trouble with all
productive enterprises at the present
time is found in the fact that year by
year general prices are falling to a
lower and lower level. Every manu-
facturer knows that it is impossible
to conduct a profitable business when
his products are constantly declining in
price. 1t is agreed by all political
economists that general fall in prices
really means an appreciation in the
value of money. The continued de-
cline in general prices since 1873 in.
all gold standard countries means,
therefore. that the volume of money
has been insufficient TO keep pace with
population and business. The great
virtue that bimetallists claim for the
reconciliation of silver is that ii viii
so increase the supply Of the money
material that our money volume viii
be adequate to keep prices steady. The
minute we steady prices prosperity will
set in, because whenever manufac-
turer can sell his goods for greater
price than they cost him to produce
no other encouragement is necessary
to induce him TO manufacture goods.
The farmer is in. the same position as
the manufacturer, and. whereas, he
now finds his crops cost him as much,
if not more, than he can sell them for,
owing TO the steady appreciation in
the value OF money, he will find then
conditions reversed and his crops SELL
ing for more than they cost him.
2. Bimctallists claim that the equal
ity of the metals in value at the legal
ratio will he preserved by the option
which bimetallism gives to all persons
to use either metal they may
choose. Should there be ten
dency for gold to rise in com
parison with silver the demand for
monetary purposes is thrown upon sill
yer and withdrawn from gold until par
ity is secured Should silver show "A
tendency to become more valuable than
gold then the demand is taken from sill
Nnr md mt tt,nr, ercI1 tx-it1, a 1tiyo ,.o
suit. This action in regard to silver
and gold is in no wise different from
what it is in other cases where one ar
ticle is a substitute for another. Both
wheat and corn can be made. into
bread, and both will sustain life. If
wheat should become very scarce the
fact that cornmeal could be used would
prevent the price of wheat rising be-
9ond a certain figure. People would
begin to substitute corn bread for
wheat bread, and thus the demand for
wheat would be decreased The trouble
with the single gold standard is that
when gold begins to go up silver could
not be substituted, and therefore all the
nations on gold basis have been striv-
ing to secure as much as possible of the
limited supply of gold on hand. with
the result that gold keeps steadily
mounting higher and higher.
3. You must understand that the price
of silver in the United States would be
the price the world over. No one would
bring silver here to be coined from any
foreign country, because the price in
the foreign country would be the same
as that here, less, perhaps, charges Of
transportation, etc. Besides this, no
foreign coin would come here to be re.
coined, because in most countries their
ratio is higher than one to sixteen, and
hence there would be loss in bringing
it here to be coined. Foreign subsidiary
silver coin, of course, would not come
There is also no great stock of silver
bullion, that is, uncoined silver, any,
where in the world. The silver basis
countries need all the silver money
they have on hand. Under these cir
cumstances you will perceive that no
speculation would be possible.
Chairman COWdV of the Indiana re-