Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1896-06-04

TO the value of silver and make it equal
TO a ratio Of Is to 1 with gold prior to-
1884, and it failed to add 6 per cent to
gold and make it equal to a ratio of Il
TO I6 with silver subsequent To 1910.
No limit can be placed upon tho
mass of silver still unmined. Good au-
thority indicates that the present an
nual volume can be produced for about
go cents an ounce. 1t is impossible to
place and maintain a price upon such q
commodity which would give it a profit
entirely disproportioned to that earned
by the average enterprise. Yet the adj
vocates of free coinage Of silver now
propose to undertake the experiment at
a local ratio Of is 10 |, although the
commercial ratio is 81 to /.
We are therefore confronted with @
proposition to change the meaning Of
the dollar from 20. % grains of gold
TO 37l4 grains of silver. AS 371I
grains of silver are worth only about 13
grains of gold, it is practically a propo-
s~ition, at a single blow, to reduce the
value of a dollar ono-half.
1t is a movement more radical than
one TO reduce openly the bullion in q
gold dollar to Ii grains. This would be
a step dangerous, but definite. No II
knows what 371M grains of silver would
DO worth under free and unlimited COIN
age. It is impossible to say whether the
increased demand for silver would carry
371h grains Of silver somewhat above
ID grains of gold, or whether this in
creased demand would shortly produce
a disproportioned increased supply and
carry the value of 371h grains of sill
yer somewhat below 10 grains of gold.
[ am aware that the advocates of FREQ
coinage of silver object to estimating
the value of silver in gold, but all in
ternational trade is measured by grains
of gold. No matter what system we
adopt, unless our international COM
merce is abandoned, our dollars will be-
actually measured by gold, even though
we fix them upon q silver standard.
The movement for the free and un-
limited coinage of silver is therefore
an effort not only TO reduce the value OF
a dollar about one-half, but to leave it
III a state Of uncertainty. 1t threatens q
complete change in the meaning Of the
term dollar TO some meaning in the
neighborhood Of one-half its present
meaning. 1t threatens an entire change
of the value of the term by which con-
tracts and credits are estimated and by
which business is conducted.
In every country where progress and
prosperity are found the great bulk of
business must depend upon credits. The
credits are estimated in dollars, and
whatever creates a doubt as to the mean.
ing of % dollar must tend TO suppress
business. The mere threat involves UNI
certainty, and this uncertainty must be-
removed to bring back to business nor
NAL prosperity.
To appreciate the Importance Of re-
moving doubt upon this subject, con-
template briefly the process of reaching
the proposed silver standard. We saw
in 1898 a paralysis of business, in large
part produced by the threat of a silver
standard.
If a president and congress were elect
ed in November committed to the free
and unlimited coinage of 371L grains
of silver into dollars, nearly six months
would pass before they could be inaugu-
rated and six months more before the
proposed legislation could become law.
During that time creditors would seek
to protect themselves against being paid
in dollars worth only about l3 grains Of
gold, and they would endeavor to make
collections before the unlimited coinage
of deprecated dollars began. The debt
ors would not be allowed to remain
debtors until they could get the advan-
tage Of paying off what they owed at
so cents on the dollar; they would be
forced to immediate settlements. Sher-
ifs and constables would call upon
them without delay. Depositors in banks
would withdraw their money. The
large merchants, forced to settle their
foreign Indebtedness, would insist upon
immediate payment of debts due from
smaller merchants. the smaller mer-
chants in turn would be compelled to
force collections from their customers.
The great volume of business conducted
upon credits would cease.
Manufacturing enterprises could not
afford to continue business or make
contracts until the value Of the new
dollar could be settled by the determi-
nation Of just what 371A grains Of sill
yer would prove to be worth. Manufac-
tories would close. Business houses
would fail. Banks would be raided.
The unemployed would be numbered by
millions. The farmers would find few
purchasers for their products. Want and
famine would pervade the land.
At the end of a few years, when bust
ness settled down to the new meaning
Of a dollar. fluctuations in the COM
nercial price of silver would still keep
our dollars of uncertain value and him
der domestic trade.
Business interests, reaching from the
richest banker to the poorest paid labor
er. require the removal of all doubt
about the meaning of a dollar. No man
should be trusted even with an impor-
tant nomination who does not recognize
that the value of a dollar is now meas
ured by %. % grains of gold. and who
is not willing to openly declare his pur-
pose to help keep it there.