Alma record. (Alma, Mich.) 1878-1928, 1896-01-03
THE VALUE OF SILVER
UNDER FREE COINAGE WOULD
BE INTRINSIC" AS GOLD.
The Uphoiders Of the British Single
Gold standard Know This and Avoid
the Essential Peint-A Very Wise
Editor In the Financial JnngIea

With only rare exceptions the gold |
champion stoutly denies that under free
coinage by the United States, silver
would rise in value.
Ridiculous as the denial is, there is
nevertheless method in it. The average
gold-bug advocate may not possess
very thorough knowledge OF the sub
iect over which he wakes so eloquent,
but he has sense enough 10 know mat
the moment he admits rise in silver
TO follow free coinage, he practically
surrenders his case and admits him
self out of court"
The very essence Of the argument In
favor OF the gold standard is that the
value of gold is intrinsic" and the in
falliblc proof OF its value is that the
coin may be melted down or hammered
into a shapeless mass and its value re-
main unchanged. From this they argue
that the value Of gold is wholly indie
pendent OF coinage laws. The fact that
the shapeless mass OF gold is only equal
in value to = coin of the same weight
because the government stands ready 10
recon it without charge, is cunningly
( kept concealed in the background.
These people know that the moment
! they admit that free coinage will raise
! the value Of silver, by necessary impn-
cation, they concede that free coinage
is a factor in keeping up the value OF
gold and also that the closing of the
mint to silver was an element in de-
pressing its value So by the exigepcies
of their situation they are forced TO ny
directly into the teeth of the law OF
supply and demand and insist that the
value of both gold and silver is alto
gether Independent OF coinage law.
The Portland Oregonlan has always
been an extreme devotee OF the gold
standard. but in a recent issue it made
an awful blunder. Replying 10 CORES
pendent who had taken the position
that the free coinage OF silver would in
crease the demand for it and conse-
quently raise its value, that paper said
IF the United States should enact free
coinage of silver, ii would create there
by a strong demand for silver, not an
unlimited demand: and this demand
would. of course, cause some rise In the
price-how much, it is impossible to
tell The supposition that by law the
United States could establish definite
price greatly in advance of that new
ruling" is absurd. 1t is unquestionable
that so great demand by so powerful
a nation would cause an advance in sill
yer, and the violent fluctuations or
speculative and unnatural market
might be expected. 1t is equally GER
tain, too. that substitution OF the silver
standard for the present gold standard
would instantly follow; nay, would an
ticipate the passage OF the act, just sc
soon as it was understood that 1t woulC
pass, attended by chaos in money ar
fairs that would produce general ruin
The world would gradually settle on
new value for silver, or rather some
new approximation to value, abou
which prices would huctuate W.
should part with our gold, put silver IL
it's place, and our money would rest OF
the silver basis. The dollar woul(
probably be worth something more thar
fifty cents. but would fall far short o
one hundred cents. We should not have
bimetallism but simply silver mono
metallism. Otherwise we must suppos
we could double the value of all the sill
> yer in the world by an act Of congress.
That admission effectually dispose
of the "50-cent dollar" cry, for the Ore
gonian cautiously acknowledges tina
it would be worth something more.
But why so cautious? If free coinag
by the United States will create -
strong demand" for silver and the bul
lion value of the silver dollar is alread
worth more than fifty cents, may it no
easily come to pass that the silver dol
lar will be worth a great deal more thai
fifty cents? If free coinage will rails
/ the value OF silver at all, why should
stop far short of 100 cents" as tn
Oregonan puts it?
l. With the American mint open wha
should prevent silver bullion from a
once springng to S129 Ghe mint rate
which would make the dollar worth 10
cents in gold? Just one thing; an ex
cessiye quantity, a quantity beyond tn
: absorbing capacity of the United State:
Will the Orogonian kindly tell us hoy
. much silver bullion there is now in tn
worlds markets? Will it then vouch
p, safe the information how much of tina
, would be likely to find its way to tn
American mint? Does 1t imagine tina
in order to sustain silver at our min
rate all the silver in the world must b
coined into American dollars? Does
a think that the moment our mint
i opened. all the rest of the world is goin
d 10 stop using silver? Does 1t not kno'
Il that when we improve the status of tn
Il metal by restoring it to its former pc
u sition in our monetary system, othe
l. countries will use more of it?
s. Is it possible that the Oregonian doe
y not know that with our mint open
S silver at the rate of $1.29 an ounce
4 every other nation and every other in