Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1896-09-24
commercial value Of metals by free and

AAhAS - - SS~NNS
This country failed to add 8 per cent
to the value Of silver and make it equal
to a ratio Of l5 to l with gold prior to
1884, and it failed to add 9 per cent to
gold and make it equal to q ratio Of J
to IS with silver subsequent to- 1910.
No limit can he placed upon tho
mass OF silve1 still unmined. Good au-
thority indicates that the present an
nual volume can be produced for about
60 cents an ounce 1t is impossible to
place and maintain a price upon such a
commodity which would give it q profit
entirely disproportioned to that earned
by the average enterprise. Yet the ad-
vocates Of free coinage Of silver now
propose to undertake the experiment. at
q local ratio Of l6 to l, although the
commercial ratio is 81 to l.
We arc therefore confronted with a
proposition to change the meaning Of
the dollar from 90. % grains Of gold
to S71L grains Of silver. AS 371L
grains of silver are worth only about -
grains Of gold, it is practically a propo-
sition, at a single blow, to reduce the
value Of o dollar one-half.
It is movement more radical than
one to reduce openly the bullion in a
gold dollar to ID grains. This would be
q step dangerous, but definite. No IN
knows what 3711 grains Of silver would
be worth under free and unlimited COIN
age. 1t is impossible to say whether the
increased demand for silver would carry
371L grains Of silver somewhat above
Is grains Of gold, or whether this in
creased demand would shortly produce
q disproportioned increased supply and
carry the value of 37l14 grains Of sill
yer somewhat below Is grains of gold.
I am aware that the advocates Of free
coinage Of silver object to estimating
the value of silver i'll gold, but all in
ternational trade is measured by grains
Of gold. No matter what system we
adopt, unless our international COM
merce Is abandoned, our dollars will be
actually measured by geld, even though
we fix them upon Il silver standard.
The movement for the free and un-
limited coinage CT silver is therefore
an effort not only to reduce the value Of
a dollar about one-half, but to leave it
in a state of uncertainty. 1t threatens a
complete change in the meaning OF the
term dollar to some meaning in tho
neighborhood of onc-half its present
meaning. 1t threatens an entire change
of the value Of the term by which CON
tracts and credits are estimated and by
which business ia conducted.
In every country where progress and
prosperity are found the great bulk Of
business must depend upon credits The
credits are estimated in dollars, and
whatever creates n doubt as to the mean
ing Of q dollar must tend to suppress
business. IN mere threat involves un
certainty, and this uncertainty must he
removed to bring back to business nor
MAJ prosperity.
To appreciate the Importance Of re-
moving doubt upon this subject, con-
template briefly the process of reaching
the proposed silver standard. We saw
in 1898 a paralysis Of business, III large
part produced by the threat of q silver
standard.
If q president and congress We're elect
ed in November committed to the free
AAAA SolIlGEC vi otlA kTSb1IlS
Of silver into dollars, nearly six months
would pass before they could be inaugu-
rated and six months more before the
proposed legislation could become law.
During that time creditors would seek
to protect themselves against being paid
in dollars worth only about Is grains Of
gold, and they would endeavor to make
collections before the unlimited coinage
Of deprecated dollars began. The debt
ors would not be allowed to remain
debtors until they could get the advan-
tage OF paying off what they owed at
90 cents on tho dollar; they would be
forced to immediate settlements. Sher-
ITS and constables would call upon
them without delay. Depositors i'll banks
would withdraw their money. The
large merchants, forced to settle their
foreign Indebtedness, would insist upon
immediate payment Of debts d,e from
smaller merchants. The small.r mer-
chants In turn would be compelled to
force collections from their custome rs.
The great volume Of business conducted
upon credits would cease.
Manufacturing enterprises could not
afford to continue business or make
contracts until tho value Of the new
dollar could be settled by the determi-
nation OF just what SIX grains of sill
yer would prove to be worth. Manufac-
tories would close. Business houses
would fail. Banks would be raided.
The unemployed would be numbered by
millions The farmers would find few
purchasers tor their products. Want and
famine would pervade the land. !.
At the end Of a few years, when bust
ness settled down to the new meaning
OF q dollar. fluctuations in the COM
mercial price of silver would still keep
our dollars Of uncertain value and him
der domestic trade.
Business interests, reaching from the
richest banker to the poorest paid labor
e.. require the removal Of all doubt
about the meaning of a dollar. No man
should be trusted even with an impor-
tant nomination who does not recognize
that the value Of q dollar is now meas
0f00 nv Or 90 uroSpc oe ~.alS 49,. -