The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1896-08-15

Those who deny the ability OF the United
States TO maintain the parity between gold
and silver at the present legal ratio. without
foreign aid, point to Mexico and assert that
the opening of our minis will reduce us to
a silver basis and raise gold to a premium.
1t is no reflection upon our sister repub-
lie to remind our people that the United
States is much greater than Mexico in
area, in population and in commercial
strength. 1t is absurd to assert that the United
States is not able to do anything which Mexico
has failed to accomplish. The one thing nee
essary in order to maintain the parity is to
furnish n demand great enough to utilize all
the silver which will come to the minis. That
Mexico has failed to do this is no proof that
the United States would also fail.
1t is also argued that since a number of the
nations have demonetized silver, nothing can
be done until all OF these Dations restore bf-
metaliism. This is also illogical. 1t is imma-
terial how many or how few nations have
open mints, provided there are sufficient open
minis to furnish a monetary demand for all the
gold and silver now available for coinage
In reply to the argument that improved ma
chinery has lessened the cost of producing sill
yer. it is sufficient to say that the same is true
of the production OF gold. and yet. notwith-
standing that. gold has risen in value.
As n matter of fact, the cost Of production
does not determine the value of the precious
metals, except as it NAV affect the supply. II,
for instance, the cost of producing gold should
De reduced % per cent. without any increase In
the output, the purchasing power of an ounce
of gold would not fail So long as there is a
monetary demand sufficient to take at 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 rela-
tive production OF the metals. This argu-
ment also overlooks the fact that, IL the
demand for hnfh natalie Mt a HNan nTiPa
is greater than the supply Of both, relative
production becomes immateriaL In the
early part OF the present century the an
nual production of silver was worth at the
coinage ratio about three times as much as the
annual production of gold; whereas. soon after
1919 the annual production of gold became
worth about three times as much at the COIN
age ratio, as the annual production Of silver,
and yet. owing to the maintenance of the
bimetallic standard. the enormous changes in
relative production had but a slight effect
upon the relative values of the metals.
The Restoration of Silver.
II it is asserted by our opponents that the
free coinage OF silver Is intended only for the
benefit OF the mine owners, 1t must be remem-
bered that free coinage cannot benefit the
mine owners any more than characterization
that the loss which the decentralization OF sill
yer has brought to the mine owners is insig-
nihcant compared to the loss which this policy
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 miners can obtain from it. While
1t is not the purpose of free coinage to especial
~ aid any particular class, yet those who be-
lieve that the restoration of silver is needed by
the whole people should not be deferred be-
cause an incidental benefit will come to the
mine owner.
There are some who. while admitting the
benefits OF bimetallism, object to coinage at
the present ratio II any are deceived by this
Iaatfo thany ntru6 p n rn-pnpnhaE fhaf fhara
are no bimetallists who are earnest in endeav-
oring to secure It at any other ratio than six
teen to one We are opposed to any changes
of the ratio for two reasons. First, because n
change would produce great injustice, and sec
ond, because a change in the ratio is not nee
essary. A change would produce injustice,
because, IL effected, in the manner usually
suggested, IL would result In an enormous con-
traction in the volume of standard money.
II, for instance, It was decided by interna-
tional agreement to raise the ratio throughout
the world to thirty-two to one, the change
might be effected in any one OF three ways:
The silver dollar could be doubled in size so
that the new silver dollar would weigh s2 times
as much as the present gold dollar, or the pres
ent gold dollar could be reduced one-half in
weight, SO that the present silver dollar would
weigh 81 times as much as the new gold
dollar, or the change could be made by in
creasing the size of the silver dollar and de-
creasing the size OF the gold dollar until the
new silver dollar would weigh 81 times as much
as the new gold dollar. Those who have ad-
vised a change in the ratio have usually sug-
gested that the silver dollar be doubled. II
this change were made 1t would necessitate
the recoinage of 100000 600 of silver into
1000, 900, 900 OF dollars.
There will be an immediate loss of 80, n0O. OO0.-
O0J either to individuals or to the government.
but this would be the least OF the injury. A
shrinkage of one-half in the silver money OF
the world would mean q shrinkage OF one
fourth in the total volume OF metallic money.
This contraction, by increasing the value of the
dollar would virtually increase the debt OF the
world billions of dollars, and decrease still
more the value of the property of the world as
measured by dollars. Besides this Immediate
T results such a change in the ratio would per-
manently decrease the annual addition to the
worlds supply OF money. because the annual
silver product, when coined into dollars twice
as large would make only half as many.dollars.
The people of the United States would be in
jured by a change in the ratio. not because Trey
produce silver, but because they own property
and owe debts and they cannot AFFORD to thus
decrease the value OF their property or increase
the burden OF their debts.
In 1873 Mr.. Carlisle said: mankind will be
fortunate indeed il the annual production OF
gold and silver coin shall keep pace with the
annual increase of population and industry"
1 repeat this assertion. All Of the gold
and silver annually available for coinage,
when converted into coin at the present
ratio. will not, in my judgment, more than
supply our monetary needs. In supporting
the act Of 1890, known as the Sherman act,
Senator Sherman, on June ) of that year.
said: Under the law OF February, 1873,
the purchase of s2,OCO.O 900 worth of silver
bullion n month has, by coinage, produced an
nually an average of nearly sI,OJJ,OO0 per
month for a period of IL years, but this
amount. in view of the retirement of the
bank notes. Will not increase our currency
in proportion TO our increasing population
II our present currency is estimated at
SI.4 COCOON and our population is increasing
at the ratio OF three per cent per annum. II
would require 81, o 1000 increased circulation
each year to keep pace with the increase OF
population, but as it is the increase of popula-
ton is accompanied by II still greater ratio of
increase of wealth and business.
1t was thought that an Immediate increase of
circulation might be obtained by large pur-
chaseS OF silver bullion to an amount sufficient
to make good the retirement of bank notes and
keep pace with the growth of the population
Assuming that S54, OOO, 900 a year of additional
currency is needed upon this basis. that
amount is provided for in this bill by the
issue OF treasury notes in exchange for bullion
at the market price. II the United States then
needed more than Si2,0O0,0W annually to keep
pace with population and business 1t now
with a larger population, needs a still greater
annual addition: and the United States is only
one nation among many.
international BlmetallIsm.
Our opponents make no dequate provision
for the increasing money needs OF the world.
In the second place, a change in the ratio is
not necessary. Hostile legislation has de-
creased the demand for silver and lowered its
price when measured by gold, while this same
hostile legislation, by increasing the demand
for gold. has raised the value of gold when
measured by other forms of property.
We are told that the restoration of bimetal-
Iism would be a hardship upon those who
have entered into contracts payable in gold
coin, but this is a mistake. 1t will be easier
to obtain the gold with which to meet a goli
contract when most of the people can use sill
yer than IL is now whene everybody is trying to
secure gold.
The Chicago platform expressly declares in
favor of such legislation as may be necessary
to prevent for the future the characterization
Of any kind of legal tender money by private
contract Such contracts are Objected to on
the ground that they are against public policy.
No one questions the right g legislatures to
fix the rate OF interest which can be collected