The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1896-05-08

standing the Eudeness of his letter.
that it is the increased production of
silver which has lessened its price, and
he takes il in with absolute confidence,
Notwithstanding Mr.. Carlisle's official
department, through his director of
the mint, and in his official report of
October II. 1S9s, page 95, tells him that
during the 100 years from 1892 to 1892
there has been nearly 1856, 900, 900 more
of gold produced than of silver in the
world, and in his report of June 30,
1894, page SO, he tells him that during
the 20 years from 1873 to 1893 there
were upward of 1895, 600, 900 more of
gold produced in the world than of
silver, and on page 50 of the same re-
port that during the years 1891, 1892
and 1893 there were sos, 600, 600 more of
gold coined in the world than of silver.
But as all the demand for redemption
money has been thrown upon gold
there is not enough, can never be
enough, to meet the requirements of
the increasing business of mankind,
until silver has been restored to its
corruptly lost monetary functions.
And Mr.. Carlisle has told him, too
that the reconciliation of silver would
lessen the value by nearly one-half of
every bond and mortgage and other
credit in the civilized world, and IN the
very same breath told him also that
the demonetization of silver has not in
creased the value of these things at all,
and he accepts this inconsistent non
sense as Gospel truth. And | have no
on h haf To i,,ta
believe it, he would accept, with equal
confidence the equally sensible state.
ment if Mr.. Carlisle were to tell him
that it is 1000 miles from ST. Louis to
Washington. but only 900 miles from
Washington to st. Louis
/ can not consent to close this letter
without ASSURING my banker friend
that if he will do a little indie
pendent investigation for himself
he will find that history, as far back
as we have any reliable statistics,
shows that no matter what the relative
increase or decrease in the supply of
of either metal, while both were in de-
mand for redemption money, so mex
haustible is the demand for money.
the relative values or ratio had never
varied more than per cent Some
| times there were from two to three
times as much silver produced as of
gold; sometimes from two to four times
as much gold produced as of silver.
Yet the ratio kept steadily within 3
per cent of fixed point.
IL he had not shown such ignorance
of every aspect of this question l would
| not insult the supposed intelligence of
| banker by telling him why But
under the circumstances 1 must.
Whenever either metal began to get
cheaper than the other by reason of
increased supply, people who needed
| money for the payment of debts, for
embarking in new enterprises and for
! any other of the thousand and one uses
| for which men need money, would
| naturally seek out for the cheapest and
| therefore the most easily obtained.
| This at once began to increase the de-
mand for that money and to lessen the
| demand for the other. Thus by the
| simple law of demand and supply the
value of one was increased and for the
| other lessened until an equilibrium
| had settled about the fixed ratio. This.
too, is the reason why double stan
| dard is more stable than any single
standard can be. For if the standard
be composed Of only one metal and
that metals supply increase or de-
crease out of proportion to demand it
| has no partner to help it regulate de-
mand and supply, but disastrous varia-
| tions in values are the necessary re-
suit.
Another one of Mr.. Cleveland's apt
and unquestioning scholars, who is
| also evidently a business man" asks
| with confidence that is positively
sublime: do you suppose, sir, that
the United States by itself could main
tain a dou BILE standard at 16 to or anv
other ratio?"
Overlooking the rudeness of his let
ter, will, for the sake of many others
who are honest but hypnotized, an
swer him with respect he does not
deserve.
Let him keep constantly in mind that
demand and supply regulate the ex-
change value of silver as well as of
gold, and that demand for money de-
ponds largely, indeed for the most part,
upon the amount of business to be car
ried on.
bureau, wrote me not long ago that in
1ss9-the last year for which he had
any statistics of the adjective manu-
featured in the United States nine
thousand three hundred and eighty
millions worth of goods. This, accord
ing to Mulhall, England's greatest