The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-10-26
0AN THERE BE TWO KINDS OF
DOLLARS?
lnconsistencfes of the Mine Owners,
Special PIeadings.

- uAAMo OtH n8T8S
Special P~ieadfngs.
Two Inconsistencies. one apparent and
the other real. In regards TO the effect of
nree silver coinage on the value Of the
standard dollar have been pointed out, the
hrst by MI. Bryan and the second by Mr..
Bryan's opponents. The advocates of the
gold standard rave told the country that
free silver would reduce the value of the
dollar to 50 cents. AT the same time they
have talked of the enormous profits of
the silver trust" which would be able
10 turn in at the mints 50 cents worth of
silver and a out a 10o-cent dollar. Mr..
Bryan wants to know whether a dollar
can be at the same time worth only 50
cents TO the w-orkingman and 100 cents to
the silver mine owner. But he has not at
which he IS guilty. To the creditor Mr..
Bryan says that free silver viii advance
the price of the white metal to $i.29 an
ounce, and create q silver dollar intrinsic
ally worth 100 cents. That's all the cred
itor wants. But at the same time Mr..
Bryan holds out to the debtor class the
aHuring vision of a 50-ceat dollar, easy
to get and easy to pay debts with. So Mr..
Bryan's opponents inquire whether the
stendard dollar can be worth at the same
time 100 cents to the creditor and 50 cents
to the debtor. Absolutely no reply can be
ma . to this question, but it ia not diff
cult to explain the apparent Inconsistency
Mr.. Bryan has discovered in the gold
standard argument. A good explanation
was given today in Wall street. The APP
parent Inconsistency is due to the fact
that Bryan1s opponents have, for the sake
of argument, accepted the contention that
free coinage would adyaaHce the price of
silver to $1.29, which is, of course, not the
fact. The mira owner viii not reap the
difference between the cost OF mining and
a 100 cert dollar for the dollar would not
be worth 100 cents to him or anybody else.
As Mr.. Bourke Cochran says it Is doubt
tul whether, in the long run, anybody
would profit by free silver. not even Mr..
Bryan. Even debtors would eventually
find that Reputation is Improbable. The
silver mine owners would profit by the
advance in silver which would probably
follow Mr.. Bryans election, but this ad-
vance would result IN Increased produce
ton, and the Importation of silver from
other countries, and with the greater sup
ply the price would fall, and IN the long
run the silver producers would, perhaps,
make no more out of their mines than
they do now. Whatever profit there is in
free silver would, indeed, be realized BY
the silver trust, and 1T would, especially
at first, be large. But there could be no
lOO-cent dollars for the m5ners and
only 5o-cenc dollars for the peo7
pie. There Is no probability that
az any time under free silver the
etcc If az ounce of silver would ad-
vance to s1.29. The miner would pTont
BY the difference between the cost OF min
ne and the highest price reached after
Bryan's election, but this profit Would be
no permanent gain. More than one sllver
mine investor, I am informed, is go-ng
to vote for Mckinley, because thsy realize
that whatever the gain from the increased
price of silver, they would lose more by
BrvanSs election would produce. Mr..
Bryan's theory, presented IN ms speech
OF acceptance, that under free SILVER the
price of the white metal would advance
= - N -. ,.o 10 a0annplnratNt cha ffnTc7
by the facts, which are within the reach
of every investigator There has been a
recent and practical test or the Govern
ment absorption of silver upon the price
chasing Act was In operation from July IA,
1890. to November l, 1898 In that time
the Government bought 16S, 6l4,6S2 ounces.
The total production of silver in this
country from January l, 1890. to December
81. 1893. was 305, 00, 900 ounces. so that the
Government purchases amounted to the
bulk of the production. was the
effect? 1t increased the production from
81. SAG, 900 ounces in 1889 to 50. 101, 900 ounces
in 1892. In 1899 the London price of sill
yer advanced from 4S5sd. in February TO
intrinsic value of the standard dollar
from "a cents to 80, but as production IN
creased the price of silver declined, not
-withstanding the Treasury purchases. In
November, 1890. 1t had declined TO 45d.;
in December, 1891. to SID; In December,
1892, to 81 15-16d.; and in June, 1898. to 3O1sd.
Since the repeal Of the Sherman act both
production and demand nave fallen on, |
ard the price has continued to decline. |
Free coinage of silver would open a mar |
ket for the entire silver production of the
United States, and the miner would profit
thereby in the difference in the cost OF
mining and the market value of the stand |
ard dollar. and also by reason of the fact
that he could turn his entire product into
money at once and without cost. This |
profit would be SO great that it accounts |
for activity of most of the silver pro-
ducers in Bryan's behalf. But the result
would be a deprecated dollar all the same
and as production increased Its value |
would decline. as in the years of the SHEER
man act.-New York Correspondent OF
the PHILADELPHIA ledger |