The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-12
GOLD AND PRICES.

sometimes the advocates of free silver
coinage claim that the so-called demone-
tization of silver has caused great con-
traction of the currency which can only
be cured by opening the minis to the coin
age of 50-cent dollars, and at other times
they claim that it robbed silver of half
its value and doubled the value of gold.
Both claims are equally unfounded but for
the present let US examine only the latter.
The contention of free slvertes is that the
so-caled characterization of silver has
caused an unnatural appreciation of gold.
and by putting the country on a gold
standard basis. has brought about univer-
sal low prices 1t is claimed that free silver
value and. by causing great appreciation
in the value of silver would cause a gen.
eral rise of prices.
In answering this it must be remembered
that silver has never been really demone-
tized in this country The constant use of
the word decentralization in discussing
the subject is misleading. Not a single
silver dollar has ever been deprived of its
full legal-tender quality in this country.
The Director of the United States Mint in
his annual report for 1895, speaking of the
effect of the act of 1873. sand: THE silver
dollars previously coined, of which there
were but few in existence. maintained their
quality as legal tender. but the coinage of
new full legal-tender dollars, whether on
government private account, was dis
continued" All that the act of 1873 did
was to discontinue the coinage of silver
dollars, but five years later that was re-
sumed under the act of 1873 and has since
been carried on to a far greater extent
than ever before. AS all the silver dollars
coined prior to 1873, and the vastly greater
number coined since are full legal tender,
it is evident that the volume OF our legal
tender currency was not diminished by the
act of 1873, and therefore, gold could not
have appreciated in value on that account.
1t is evident that gold and silver have
become widely separated in commercial
value. The fact is palpable and can only
be accounted for on the theory that silver
has fallen or gold has risen in value. The
slvertes take the latter position. There
are great many persons who scout the
idea that the apparent motion of the sun
is due to the actual motion of the earth.
They insist that 1.-The sun do move" and
they able to adduce arguments on that
side of the question which are entirely
satisfactory and convincing to other per-
sons of their kind The apostle Paul spoke
of persons to whom God shall send them
strong delusion. that they should believe
a lie." Persons who believe that the sun
moves around the earth and that silver
has remained stationary in value while gold
has almost doubled during the last twenty
years are not likely to be convinced by any
argument to the contrary. Some persons,
however, who are not wholly given over to
believing a lie, may be.
The contention that the present low
prices of farm products are due to the rise
in the price of gold is not sustained by
any proof whatever. On the contrary, all
the facts go to disprove it. The single gold
standard has prevailed since 1853, and high
prices have prevailed during many years of
that time. They have prevailed during
many years since 1873 when the so-called
decentralization of silver took place. There
is fifty times as much full legal-tender sill
Yer currency in the country now as there
was in 1873, and if there were any connec-
ton between silver and prices the latter
should be much higher now tn they were
then. On the contrary, they are much
lower. But there is also a great deal more
gold in the country nov II n there was
then, and more gold and .rer other
civilized countries than ae y. then.
During all that time tn >"rl ct reports of
the world show that silver has steadily de-
precated. but they also repel the idea of
any connection between the prices of other
products ard silver. If the decline of prices
were due to the appreciation of gold the de-
cline should have been steady and alike in
all products. On the contrary, it has not
been steady, having been broken by many
periods of high prices, ard some things
have been very high while others have been
very low. All the facts go to show and the
conclusion is irresistible that the deprecia-
ton in the price of silver is real. not rela-
tive and that it is due to greatly cheapened
production and immensely increased out
put No legislation could cure this. Free
coinage, full legal tender, fictitious valua-
ton and government fiat all combined could
not restore silver to its former place In
the market reports of the world. meas
ured by gold.