Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1896-08-05
The Gazette'S "Catechism.v

guments adduced by one who calls
himself a "Life Long Republican, /"
but who has evidently become enam-
ored with the financial policy of the
Popocrats. "The Financial Cate
chism" which The Gazette prints is
not orthodox, and unlike it's name
sake, is filed with heresies and pal
pable untruths. These we will en-
deavor to unmask and answer the
questions propounded fairly and with
candor.
Passing over the first few of these
queries, the first one that arrests at
tention is, "what has caused the di-
vergence between the coinage and
bullion value of sllverW The answer
of Life Long Republican" is that the
cause was the demonstration of sill
yer by this. country in 1878. Now,
silver is commodity and the price is
regulated, as even our silver friends
must admit, like the price of any
other commodity, by the laws of sup
ply and demand and the cost Of pro-
duction. In 1878 the amount of sill
yer mined in the world was 63,267,-
600 ounces. In 1874 it was 55, 3OO,
600 ounces. Since that time the
worlds production of silver has
steadily increased until in 1894 it
reached the stupendous amount of
167, $4,000 ounces. The cost of
mining in 1894 was only about %
per cent of what it was in 1878
What do these figures show? An
enormous increase in the output, less
cost of production. No one can deny
that these lower the price of any
commodity unless the demand in
creases proportionately but a cur
tailed demand has also assisted in
the cheapness of silver. Platinum
and aluminium are now used for
many purposes In the arts and man
ufactures where silver was formerly
used. AS for demonstration as a
cause, We have coined since 1878
429, 100000 of silver dollars, while
! from the establishment of the mint
in 1898 to 1878 only 8,031,0O dol
lars were coined.
Our bi-metallic friend says that sill
yer was demonetized because Of a de-
sire to limit the supply OF money. In
| 1873 silver was at a premium over
gold and our silver dollar was worth
| $1.O3. As has been stated before in
| these columns, the dearer money al
ways disappears from circulation; is
either boarded or exported. Conse-
! quently, silver was scarcely seen IN
1873 and expectation reached the
| highest mark ever attained up to
that period, S27, 100000. 1t was
! demonetiZed to increase and not to
diminish the supply of money; to re-
place in circulation what was hoard
ed and prevent the expectation Of
what was already in use.
1.-The Catechism" maintains that
because the ratio of supply of silver
to gold is about 152 to THAT is,
that there are about 153 ounces of
silver in the world to l of goId-that
the ratio of value should be the
same, or 16 to L. That is to say,
that if the farms of the world pro-
duced relatively sixteen bushels of
wheat and one bushel of barley, the
latter article must necessarily be
only sixteen times more valuab bile.
According to the catechism the fact
that the demand for wheat only
amounts to one-half the supply cuts
no figure at all; the price must re-
main invariably 16 to / because
supplied in that proportion. What a
wonderfully convincing argument to
parade before the Intelligence or the
American people!
/ That the fall IN the price of COM
| modities is due to the adoption of
the gold standard is another state
ment made in utter disregard OF the
primary laws of commercial trans
actions; namely, supply and demand
and cost of production. 1t is best
refuted by glanclng at the increased
acreage Of our western prairies, the
! growth Of manufacturing interests,
the labor saving devices Of both farm
and shop. Over production at less
cost than formerly is the reason and
free silver wouldn't help the situa-
ton one particle.
France with lis $58 per capita is
made an example of national pros
perity, but the writer fails to state
that every dollar of it is on gold
basis. Would per capita of S58 be
benefit with silver as Il basis when
the purchasing power would be re-
duced One-half? We think not
Three reasons are stated why the
silver Of the world would not be forced
upon us for coinage at 16 to l. But
again commercial usage is disre-
garded and the fact ignored that
| producer always seeks the best mar
ket for his wares If he can obtain
$1OO for his silver bullion in the
United States and a dollars worth
Of value for that dollar, he isn't 60
ing to part with it elsewhere for so
| cents.
But the mask is off and the writer
of ''The Catechism" stands revealed
in his dishonesty of purpose when he
makes the statement: eve would
be foolish to under-value our own
products. We should of right demand
15b instead of 16 to l." That is
to advocate that the American work
J man and farmer give one dollars