The San Francisco call., 1896-08-13

|
lecture silver has been used as money for
tnouHAnus OF years, and during all OF that time
Ihe woriu mas never suffered from an over
PfouuSt1on. III LOT any reason, the supply
OF gold or silver in the future ever excee ds the
requirements OF the arts ana the needs of COM
melce, we connoentiy hope that the intelli-
genee OF the people viii be sufficient to devise
and enact any legislation necessary for the
protection OF the public; it is folly to refuse to
the peopie the money which they now need
tor lear they may hereafter have more than
| they need.
| am firmly convinced that by opening our
mlnts 10 iree ana unlimited coinage at the
present ratio we can create demand for silver
! which will keep the price of silver bullion at
| 81 29 per ounce measured by gold. Some of
Of silver, when measured by gold to the fact
| that during the last quarter OF century the
worlds supply OF silver has increased more
rapidly than the worlds supply OF gold. This
that during the last five years the annual nro.
duction OF gold has increased more RAPIDLY
| than the annual production of silver Sinca
the gold price OF silver has fallen more during
the last five years than it ever fell in any nre
vious five years in the history of the world
| il is evident that the fall is not due to in
creased production.
Prices can be lowered as effectuallv bv de-.
creasing the demand Tor an article as by In
creasing the supply of it, and it seems certain n
that the fall in the gold price of silver is due
| to hostile legislation and not TO natural laws
Our opponents cannot ignore the fact that
gold is now going abroad in spite of all legisla-
| tion intended to prevent 1t and no silver is
being coined to take its place. Not only is
gold going abroad now, but ii must con tinue
10 go abroad as long as the present financial
policy is adhered to, unless we continue to
borrow from across the ocean, and even then
we simply postpone the evil, because the
amount borrowed, together with interest upon
it, mus be repaid in appreciating dollars The
American people now owe large sum to
European creditors, and falling prices have
left larger and larger margin between our
net National income and our annual interest
charge. There is only one way to stop the in
creasing flow of gold from our shores, and that
| is to stop falling prices.
| stop falling prices, but will, to some extent
restore prices by reducing the worlds demand
for gold. If it is argued that rise in prices
lessons the value of the dollars which we pay
| to our creditors reply that in the balancing
of eq quities the American people have as much
right 10 favor financial system which will
maintain or restore prices as foreign creditors
have 10 insist upon financial system that
will reduce prices.
The interests to society are far superior to
the interests of either debtors or creditors, and
the interests of society demand financial
system which will add TO the volume of the
standard money OF the world, and thus restore
the stability to prices. Perhaps the most per
slstent misrepresentation that we have TO meet
is the charge that We are advocating the pay
ment OF debts in 50-cent dollars.
At the present time and under pre- sent laws
silver dollar when melted loses nearly hall
its value, but that will not be true when we
again establish a mint price for silver and
leave no surplus silver upon the market to
drag down the price OF bullion. Under BIZ
me tallism silver bullion will be worth as much
as silver coin, Just as gold bullion is now worth
as much as gold coin, and we believe that a
silver dollar Will be worth as much as gold
dollar.
The charge of "repudiaton'' comes with
poor grace from those who are seeking to add
TO the weight OF existing debts by legislation
which makes money dearer, and who conceal
their designs against the general welfare
under tue euphonious pretense that they are
upholdipg public credit and National honor.
In answer to the charge that gold will go
abroad it must be remembered that no gold
can leave this eountry until the owner of the
gold receives something in return for 1t which
he would rather have.
IL other words, when gold leaves the coun-
try those who formerly owned it will be bene-
fted. There is nc process by which we can he
compelled to part with our gold against our
will, nor is there any process by which silver
can be forced upon US without our consent.
Exchanges are matters of agreement, and if
silver comes to this country under free coinage
1t will be at the invitation of some one in
this country who will give something in ex-
change for it.
Those who deny the ability of the United
States TO maintain the parity between go d
and silver at the present legal ratio without
foreign aid point 10 Mexico and assert that the
opening of our mines viii reduce us to 81 yer
basis and raise gold TO premium. 1t is no
reflection upon our sister republic to remind
our people that the United States is much
greater than Mexico In area, in population and
q
1t is absurd 10 assert that the United States
is not able to do anything which Mexico has
failed to accomplish. The one thing necessary
in order to maintain the parity is TO furnish
demand great enough to utilize all the silver
which will come to the miIts. That Mexico
has failed to do this is not proof that the
United States would also fail.
1t is also argued that since number of
the nations have demonetized silver nothing
can be done until all nf these nations restore
bimeta!lism. This is also illogical. 1t is i'm
material how many or how few nations have
open minis, provided there sufficient open
mlnts TO furnish monetary demand tor all
the gold and silver available for coinage.
In reply TO the argume mt that improved ma
chinery mas lessened the cost of producing
silver, il is sufficient to say that the same is
true of the production of gold, and yet, not.
withstanding that, gold has risen in value.
AS matter OF fact, the cost of production does
not determine the value OF the precious met
ais, except as it may affect the supply.
Ii, for instance, the cost of producing gold
sheu be redueed's0 per cent without any in
crease in the output, the purchasing power of
an ounce OF gold would not fall. So long as
there is a monetary demand sufficient TO take,
al fixed mint price, all the gold and silver
produced, the cost OF production need not be
considered. 1t is often objected that the prices
of gold and silver cannot be fixed in relation
to each other, because of the variation in the
relative production OF the metals. This srgu-
ment also overlooks the TACT that if the de-
mand for both metals at fixed price is greater
than the supply of both, relative production
becomes immateral.
In the early part of the present century the
annual production of silver was worth, at the
coinage ratio, about three times as much as
the annual production of gold; whereas, soon
after 1S49, the annual production Of gold be-
came worth about three times as much. at the
coinage ratio, as the annual production of sill
yer; and yet, owing to the maintenance of the
bimetallic standard, these enormous changes
in relative production had but a slight effect
upon the relative values of the metal,
III 1t is asserted by our opponents that the
free coinage OF silver is intended only for the
benefit OF the mine-owners it must be remem-
bered that free coinage cannot restore to the
mine-owners any more than demonetization
took away; and 1T must also be remembered
thai the loss which the characterization of
silver has brought to the mine-owners is in
significant compared to the loss which this
policy has brought to the rest of the people.
The restoration of silver will bring to the
people generally many times as much advan-
tage as the mine-owners can obtain from it.
While il is not the purpose OF free coinage to
specially aid any particular class, yet those
who believe that the restoration of silver is
needed by the whole people should not be de-
TERED because an incidental benefit viii come
TO the mine-owners. The erection of torts,
the deepening of harbors, the improvement of
rivers, the erection OF public buiidings-all
these confer incidental benefits but do not de-
ter US from making appropriations for these
purposes whenever such appropriations are
necessary for the public good.
The argument tnat a silver dollar is heavier
than gold dollar and that therefore the silver
t lonr snrns ~ "a IN la H. 80