The Providence news. (Providence [R.I.]) 1891-1906, 1896-08-03
FREQ Coinage and Jewelry.

by the nature OF their business jewellers
are more peculiarly and intimately in
terested in the discussion of free coinage
OF silver tnan any other class Of business
men, for gold and silver are the raw
materials OF the jeweler, and anything
that affects their cost or value Is Of vital
Importance to him. IL is then o fair ques-
iton what would be the effect of the tree,
independent and unlimited coinage OF
silver on the jewelry trade?
The hrst immediate effect would be an
increase In the price OF silver bullion TO
at least dollar an ounce. As there. are
mechanical difficulties In the way OF
minting the bullion supply In sight, 1t
would be impossible for holders of said
bullion imm ediately to transfer the same
into standard silver dollars. The present
capacity OF the mints for coming silver
dollars is about $40, 600. 600 per annum,
or about the amount that was coined
under the Sher man Silver Purchase Act,
which was repealed In 1893. In order to
fully carry out the scheme of free and
unlimited coinage OF silver, Ii would be
necessary to establish numerous other
mints. In the meantime, there would be
q surplus of silver bullion, which would,
undoubtedly, sell in the open market for
less tnan its coined valuo.
Tne moment that the forthcoming
Presidential election should result in a
victory for the silver propagaudists the
boarding Of gold would Immediately be-
gin and the price of tnat metal would
naturally 60 to considerable premium,
which would ontinually increase as the
amount Of silver coin that was coined
increased.
Thus 1t will be seen that whatever may
be the effect OF free coinage upon the
gen ersl AFFAIRS OF the people at large, the
immediate result. for jewellers would be
o considerable enhancement Of the cost
of their principal raw materials. During
the past three years, hard times and
competition have united to make the
margin OF profit in jewelry exceedingly
narrow. 1t would, therefore, be impossible
for manufactures to continue to sell their
wares at old prices. There woula be,
however, a struggle between manufactur-
ers and dealers to prevent the natural in
crease In the price. Here, again, COM
petition would cut considerable figure,
and the probable result would be that
the percentage OF profit would be reduced
to point even lower than now.
to remark, the low price Of silver during
the past few years has been the saving
clause for the Jewelry business. BY this
means 1t has been possible to produce a
large mum ber of articles of beauty and
utility at price which the people could
pay, and this has practically made q new
industry, along the same lines as their
former business Of making gold and
,.Iu ho "a "a,
and, of course, whatever applies to them,
also applies to those who sell the goods
to the consumer. To nearly or quite
double the cost OF the material I'm these
goods could have only one result, and
| that is largely to take them out OF the
market.
In considering this question, 1t must
also be remembered that there was prob
ably never a time when the gross iD1ebt-
edness OF the jewelers. TO the makers
thereof was greater than 1t Is now. This
in de ebtedness. contracted for on q gold
basis, would be paid OF. In those cases
where 1t was paid of at all, in money
on q silver basis. That Of course, would
not fail 10 work direct hardship upon
the manufacturer, for it would be prac-
tical shrinkage OF 90 per cent.
AS the prosperity Of the Jewellers is
largely dependent upon the general pros
perity OF the people, the probable effect
OF free coinage upon the country at large
mu.t be taken into consideration. Wise
men, we'll versed in financial lore ana
history, predict panic as result. FIX
Governor John W. Davis Of this State,
himself a silver man, announces his belief
that such would be the first fruits OF the
new law. We certainly have had all the
panics that we care to have anything to do
with for another score OF years, and 1t is
the duty OF every man who Is looking
out for bis own welfare, as well as for
that OF his country. to do all in his
power to avert the possibility Of such a
calamity.