The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-07-25

Of 1873 demonctizing silver has
resulted in the appreciation Of gold and
n consequent fall ia the prices OF COM
modtiee."
by the appreciation Of gold" is not
meant that il takes any less gold To
make dollar--or "A dollars worth OF
gold-than formerly; that has remained
precisely the same; but it means that
the purchasing power oil all dollars for
which gold is the standard, whether OF
gold, silver or paper, has increased, SO
that dollar buys more OF all commodi-
ties than il did in 1878. 1t is claimed
that this has resulted because gold is
insufficient in quantity as n standard to
measure the values OF the world, and
that, consequently, we are Obliged 70
measure a larger amount accommodates
by given amount OF money.
II this premise is not true, then the
entire contention for free coinage fails,
because this is the main basis OF the
proposal.
The money question, in it's entirety, is
a worldwide question. The world price
OF gold and silver is fixed, just as the
world price OF any other commodity Is
fixed, OF wheat or copper or wool, for
MISTAKENLY the worlds available sup
ply and the worlds actual or prospect
i've demand.
Any remedy which is to bring silver
back TO IA parity with gold, at 16 to /,
must depress the world price OF gold or
raise the world price OF silver, or both.
The remedy proposed by the free coin
age advocates is TO open the mints oil
the United States alone TO the free and
unlimited coinage OF silver mt the old
ratio.
When il is remembered that in 1894
the United States and Mexico alone
produced Sl25, 100000 OF silver, and
that this production, under the stimula-
ton OF free coinage, could be nearly
doubled, the proposal is seen TO be wild
and absurd. Moreover, the coinage
value OF this production would be vastly
in excess OF it's market or commercial
value.
But aside from this worldwide ques.
ton il the national question for us Ia
consider. n the single gold standard
has created tho depression OF prices, II
must be because il has ousted silver
from it's place az money, and thereby
created a money stringency. But silver
has not been ousted OF its place ne
money by gold. In 1878 we had nc
silver money in circulation. IN 1894
we had 1921, 249, 00Q OF silver, either IN
circulation or available for circulation
and every dollar as good as gold.
But how was il without total circula'
ton? In 1873 we had S76l 1881 800, ia
circulation, or $lS.0i per capita. In
1894 we had 81 ,660, sos, 70S, or S24.2a
per capita.
The total amount OF money available
for circulation, in the treasury and
among the people, in 1878, was STA
i45, 610; in 1894 it was $2,42O,43f,
ISL. Per capita, 1878, SlS,hSi pei
capita, 1894. Sa5,44. Statistical Alb
stract. U. S., 1894 p. 30.) IL viii
therefore be seen, and the fncts are be
yond dispute, that whether we consider
the amount OF silver in circulation, the
total money in circulation. the tota
money available for circulation, or pei
capita Of circulation, there had been a
vast increase. The volume OF money IN
actual circulation had more than
doubled; and the money per capita
available for circulation had almost
doubled.
Never In the entire history OF The
country had we so large per capita ol
circulation as since 1878, and especially
since 1881. There has, therefore, been
no depression OF prices on account o'
contraction OF the money available, and
the cause must be sought somewhere
else.
But as we showed recently, in that
most universal, and most important oil
all commodities, which enters into and
produces every other commodity--to-
wit, labor-therc has been no decline
until since the panic OF 1898, but, ON the
contrary, an increase OF price.
The simple truth, says the Detroit
Journal, is that tho world over, the
power Of production has outrun the ca
pacity for consumption the result is
over.competition and the great rcduc-
ton Of prices experienced. Free coinage
by the United States alone would not
remedy, but would rather t"nd TO ag-
gravatc the evil.
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