The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-31

1t seems to us tat 49, u, o ,,rat+v
complete edsa>I[ion in the pronoe,tion
legislative creation of values, or,
! II You please to put it so, creation of
| conditions that control values, in a
study of this brief table The act Of
congress provided for the withdrawal
| from the supply of the entire silver
product of the United States and over 40
per cent of that of the whole world The
price of silver in the year preceding
had been 93.5 cents per ounce. In the
year 1890 it averaged $1.04 per ounce.
This high average was obtained by a
sudden speculative increase in the price
of silver, which took place at the time
! of the passage Of the act. That was
speculative, because the act did not
! go into effect until after the middle of
the year 1890, and was not, of course,
practically operative upon commercial
/ conditions until some time later. The
boom in silver bullion was in
| Simultaneous, and it's subsequent decline
as rapid. In the year 1891, this law.
entire American product and piling it
up in the treasury, was in full force
| What do we find? An increase in the
worlds product Of II, 900, 900 ounces, and
an increase in the product of the United
! States of nearly 100000 ounces. A fall
In the price of silver in 1881
| as compared with 1890, of near
ly six cents per ounce. What
! do we find In 1892? Still the "cre-
alton Of conditions to affect price was
going on. The United States treasury
was putting out Of sight $4,000, GOO
ounces of silver per annum How did
production and price respond? In
that year the worlds production had
| increased 100000 ounces over the fig
ures OF 1889. The production of the
Ohited states had risen to 60, SOC, 600
ounces, and the price Of silver had fall
en- from $1.04, in 1890, when this law
| was passed, to $.S7; II cents below the
average of that year, and 8 cents per
ounce decline since the year preceding
| What an exceedingly short memory
any man must have who urges us to
believe that free coinage act bv the
United States, alone, will raise the
price Of silver bullion all over the world
billions of dollars worth, or 100 per
cent, when the withdrawal from the
worlds supply of the entire product of
this country was coineident with
a steady and heavy fall in
the market price of bullion. That vi
cfous and malevolent act of 1890 was
almost worth while In order to furnish
the complete and absolute demionstra-
ton which it does today Of the fallacy
| OF the free silver suppositfon that a
! free coinage act would raise the price Of
| silver bullion to S129 per ounce. An
ounce of fact like this is worth a to--
of abstract theorizing.
Having stated his position in that
particular, Mr.. Hessian, after the IA
SIMON OF the free coinage advocate.
sk1ps lightly to another part of the
| topic entirely and says that II is the
business of the government and it's
duty ito coin sufficient money for the
use of the people, He then affirros
that there IS a lack of money in the
| country, statement that Is denied and
| disproved by every comparison of tha
amount OF circulating medium in the
United States, and in the world at the
present time, and for the past half CEN
fury, as compared with the Increase NJ
business and population Mr.. Hessfan,s
assumption that because the GIob
| oisapproves OF our present financial
system, and calls 1t "a makeshift." as
1t Goes, that 1t therefore comedies tbe
need OF more money, is perhans as Ioe-
1cal as other parts of his communica-
ton; but 1t does not seem to us TO ra-
quire comment. If there were a lack
or money In this country 1t would be
shown as the lack Of anything else ia
SHOWN, by rise in price. If there Is
TOO little wheat Or corn, or too few
reaplng machines or bicycles. or ready
made garments, or any other commad-
lty Whatever, to satisfy the demand
the instant consequence is a rise Of
price II there is not enough money in
the country or in the world. the instant
effect will be rise in price. That ts
what we see In great financial centers
when panic strikes them. and there ts
not enough money to satisfy the daily
demand. Rates go up to unheard-of
figures until the conditions chanse. IF
then, there is lack of money. prices
or money, that is. the rate in interest
advances. The fact that interest rates
IN this country have been progressively
declining for a series of years. as every
borrower, both East and West, knows,
furnishes the only possible economic
proof that there is not lack of money:
and it is, to our mind, conclusive.
WILL TOwNE TOTE FAIRf