The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1896-08-14
EFFECT OF FREE COINAGE
Asserts 1t Would Raise the Bullion Value
to Its Coinage Value.

to Its Coinage Value.
There is an actual necessity for bimetal-
ism as we'll as a theoretical defense of it.
During the last % years legislation has
been creating an additional demand for
gold, and this law created demand here
resulted in increasing the purchasing
power of each ounce of gold. The restora-
ton of bimetallism in the United States
will take away from gold just so much of
Its purchasing power as was added to it
by the characterization of silver by the
United States. The silver dollar Is now
held up to the gold dollar by legal tender
laws and not by redemption in gold be-
cause the standard silver dollars are not
now redeemable in gold, either in law or
by administrative policy.
We contend that free and unlimited
coinage by the United States alone will
raise the bullion value of silver to its coin
age value, and thus make silver worth
Sl.29 per ounce Throughout the entire
world. This proposition is in keeping
with natural laws, not in defiance of them.
The best known law Of is the
law of supply and demand. We recognize
this law and build u argument upon 1t.
We apply this law to money when we say
that u reduction in the volume Of money
will raise the purchasing power of the
dollar. We also apply the aw OF supply
and demand to silver when we say that a
new demand for silver, created by law,
will raise the price of silver bullion.
Different From Other Commodities.
Gold and silver are different from other
commodities, in that they are limited in
quantity. Corn, wheat, manufactured
products, etc., can be produced almost
without limit, provided they al be sold
at a price sufficient to stimulate produc-
ton, but gold and silver are called
precious metals because they are found,
not produced. These metals have been
the objects of serious search as far back as
history runs, yet, according to Mr.. Har-
vey's calculation, all the gold coin Of the
world can be melted into a 22-foot cube,
and all the silver coinin the world into a
66-foot cube. Because gold and silver are
limited, both in the quantity now in hand
and in actual production, it follows that
legislation can fix the ratio between them.
Any purchaser who stands ready to take
the entire supply Of any given article at a
! certain price, can prevent that article
from falling below that price. So the gov
eminent can fix a price for gold and silver
by creating a demand greater than the
supply. International bimetallists be.
lieve that several nations, by entering
into an agreement to coin ut a fixed ratio
all the gold and silver presented, can
maintain the bullion value of the metals
at the mint ratio. When a mint price IL
thus established it
Regulates the Bullion Price,
because any person desiring coin may
have the bullion converted into coin at
that price, and any person desiring bullion
can secure it by melting the coin. The
only question upon which international
bimetallists and independent bimetallists
differ Is: Can the United States by the
free and unlimited coinage of silver at the
present legal ratio create a demand fOr
silver which, taken in connection with
the demand already in existence, will be
sufficient to utilize all the silver that will
be presented at the minis? They agree
in their defense of the bimetallic principle,
and they agree In unalterable opposition
to the gold standard. International bi.
metallists cannot complain that free coin
age gives a benefit to the mine wner be
cause international bimetallism gives tC
the owner of silver all the advantages
offered by independent bimetallism al
the same ratio. International bimetallistt
cannot accuse the advocates OF free silver
of being bullion owners who desire tt
s raise the value of their bullion" OF
debtors who desire to pay their debts In
cheap dollars" or 'demagogues who de
sire to curry favor with the people" They
must rest their opposition upon ont
ground only, namely, that the supply d
oliver available for coinage II too large X