The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-26
1t. Of course. feels the response In in
creased rrices

40 VI OouiS es AStAs Tie response IN IN
creased prices.
In case of the free coinage of silver,
the conditions are obviously altogether
different. There is no lessening of
supply, but, on the contrary, there Is
every reason to suppose that the sup
ply would actually be doubled We do
not know what the total producing
capacity Of the silver mines Of the
world is, but we do know that it's ag-
gregate production rose in 1894 to
nearly 1853. 000,0 900 ounces. The product
Of the United States alone increased
from 100000 ounces, in 1876, to CO.
100000 ounces, in 1892. 1t has now
fallen, with the lowered price of sill
yer, to 46.00O.O0O ounces. Offer the
enormous bounty Of 100 per cent, to
stimulate silver production, and it is
certain that the worlds product would
leap at once to from 200 000, 900 to 30e,-
900, 900 ounces per annum. So, where we
have in the one case sensible and Sc
rfous diminution in supply, contem-
poraneous with an undiminished or
somewhat increased demand we have,
in the other case, probable double
supply operating to keep down prices.
1t is easier to bring home the force
Of the argument by striking another
parallel. If demand, in the economic
artificially, by law, for any commod-
ity, then, of course, it's operation can
not be limited to a particular metal
alone. Why not proceed to raise the
price of wheat directly by passing a
law offering to purchase all that might
be offered at 81 per bushe1, or
even at 81, or at IS? If it
would work in the case of silver, 1t
certainly would work as we'll for wheat
or barley or oats or potatoes. They
are even more amenable to such treat
ment, because they are consumed in
large quantities annually, while an
ounce of silver once mined remains al
ways in existence, either in the cur
rency or for use in the arts. 1t seems
clear to us that if the proposition of
the silver men about raising the price
of that metal to $1.29 per ounce by
legislation is correct, then we can ac-
complish the results said to be aimed
at for the farmer in the same way.
Our correspondent seems to have
forgotten that you cannot "create I'M
limited demand" for anything. Who
RI he nd he
pared to take the supply and pay for
it. whether it be silver or gold or corn
CIR cabbages. If the government Of
fered to purchase all wheat grown at
81 per bushel, somebody would
have to furnish the money wherewith
to buy it. 1t would have to be raised
by taxation or borrowed on bond sales.
The final result would be to leave the
country worse off than it was before
by the cost of these different opera
tons that would neutralize each other,
and by the tremendous disasters in
cident to artificial disturbances of COM
mercial conditions. If the country Of
fers to purchase all the silver produced
in the same way, it must do so on the
same penalty. Inasmuch as you can
not create values by legislation, some
body has to foot the bill. In the case
Of free silver at 16 to /, that man, we
believe, would be the laboring man,
the clerk and all those who live on fixed
salaries and the income Of small ac-
cumulated saving. We do not believe
then marching down it again at their
expense