The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1896-08-28
THAT DREADED INFLUX.
Significance of the Increased Production
of Silver Under Free Coinage.
| A subScrihnr Tronoundc tbo folloyiuc

Significance of the Increased Production
of Silver Under Free Coinage.
A subscriber propounds the following
inquiry:
Supposng that this country won't for free
silver in November, tho mines of this country
would moro than triple their present produc-
tion. Would not this influx of now silver have
some effect upon its market valueP
] am free silver Democrat, and the above
question is the only ono that cannot sHtisfac'
torily answer. The bankers and leading Re-
tublicans around here arc winning more votes
by the above argument than any other If you
viii answer it, l think you will do the cause
good.
That question is very easily answered.
In the first place, there is not shadow
of foundation for the statement that the
production Of silver would triple under
FREQ coinage. Our present output is,
roughly speaking, so, 600, 900 ounces u
year. If any man knows where 100,-
600, 600 ounces moro can be produced
each year, the country would be delight
cd to have the benefit of his knowledge.
The statement is absurd. Secondly, such
an increase of production would be in
tho highest degree beneficial. Silver is
wealth, and the more wealth the coun-
try can produce tho better it will be for
the country. The average goldite speaks
of silver production as though it were a
nuisance to be abated, rs if in some in
scrutable way it cast blight upon the
nation. Thirdly, there will be no
increase unless the value of silver
rises. There would be nothing TO stim-
ulate the production. So the statement
that the product would increase carries
with it the admission that under free
coinage silver will rise in value. If,
then, we can increase the value per
ounce and at the same time increase the
output two or three fold, in a business
point Of view it is sheer idiocy for us
not to do it,
Fourthly, very large increase Of
production would affect the market price
of silver measured in gold. If the. in
crease were large enough, it would
break the ratio of 1G to /. The effect of
that would be to send gold to a premium
over silver, and our metallic money in
circulation would consist exclusively of
the latter. This would cheaper in pro-
portion as its quantity increased. That
is to say, prices would become higher
1t would take more dollars to buy a
given quantity of goods. The effect
would be to stimulate business, for in
dustrial activity always accompanies
rising prices. Our silver being cheaper
than gold would keep it at home and
use it in our own business, rather than
send it abroad to buy goods and suffer q
loss ON the exchange. This 10 what In-
dia, China, Japan and Mexico are now
doing, Thus the premium on gold would
operate as protective tariff for Ameri.
can industries. At the same time, the
United States having stopped using gold
as a currency, that metal would cheaper
abroad, where our surplus products are
sold, and our wheat, cotton, petroleum,
hides and breadstuffs would exchange
for more gold than they do now.
Finally, whether gold went to pre-
MUM or not, the RECOMMENDATION of sill
yer would enable us to compete in the
European market on more equal terms
with silver using natiops, In our cur
rency an ounce of silver would represent
$1.20, no matter how silver might rate
with gold. If we sold bushel Of wheat
in London for an ounce Of silver in
American money it would be worth
81. 30 instead of G8 cents as it is now.
Under present conditions, when an East
Indian sells bushel Of wheat for an
ounce of silver, it means as many rupees
as it ever did. Those rupees will pay as
much taxes and debt as they ever would
in Hindustan and buy the same neces-
saries of life. In short, the Indian gets
as much money and as good money as
he ever did.
Tho American, competing with the
Indian, also gets an ounce of silver or
its equivalent. But this equivalent in
our appreciated money is, as before
stated, only 09 cents This 68 cents will
buy for the American farmer MS much
of some things as $l.20 would 28 years
ago, but it will not bny as much of all
things Some prices have fallen more
than others. Educational charges, doc
tors bills, lawyers fees and the like
have fallen very little, if any. Debts
remain the same, while taxes have actu.
ally increased. National Bimetallist.