Evening star., 1896-08-18

dollar. not altering the present price Of sill
yer by q hair rs-bfeadth, would be ample to
show that he believes that that price Is
caused by natural laws alone. But he direct
ly states that such Is the fact. He says: we
cannot by law fix the value of either metal
or coin or Of any of the articles that enter
into the wants Of life. The great, law of
demand and supply affects the value as it
oceS iron, copper or zinc.
The Value of Money Metals.
'If this be true. then indeed, is the oc-
cUpation of the international as we'll as the
Independent. bimetallist gone. The single
standard is the only possible outcome of
future financial legislation. But this theory
OF the value of money metals is not yet ac-
cePted by all economists and financiers
NOT does 1t seem to derive warrant from
the history of finance. When gold was dis
covered In hitherto unknown quantities in
CahIornla and Australia. European econo-
mlsts predicted that the large oversupply
OF that metal would greatly depreciate its
market value. So strenuously was this
urged that Germany, Belgium and Holland
denonet1zed gold, making silver the sole
legal tender. No doubt they congratulated
themselves upon their foresight, and wait
ed, with complacent compassion for other
nations which were still coming gold, for
tne anticipated slump in the gold market
But no slump resulted, and after short
period of expectation they, at the urgent
demand of their business men, restored gold
to the place it had before held in their
coinage. The ratio of gold to silver had
varied only to most insignificant extent
and that variation was probably due to
ether causes, since greater variations had
occurred prior to the immense increase in
the supply of gold.an increase that raised
the coinage Of gold in this country from
$49. oo 49,. 30 in the decade from 1898 to 1871
to s4os, 500 1614 in the succeeding decade;
that OF silver meanwhile being increased
only from 719 to So, 191 ,307. .63. If
the enormous increase in gold at this period
had no appreciable effect upon the ratio of
gold to silver, is 1t probable that the in
creased production of silver in more recent
years has doubled that ratio? To make this
point clearer the ratios in various years are
here inserted: 1898. 1917 to 1; 1850, IL. 20 to
l; 1850, 1923 to l; 1870. 1851 to 1; 1890
1905 to L; 1880. 1916 to L. 1894, 1856 to /.
Effect of fDemonctixatlon.
"1f, then. the history of money metals
shows (and the more it is searched the
mole examples multiply that the ratio of
gold to silver is rot materially altered by
the operation of the unaided law of supply
ard demand. nor by the law regarding the
cost Of product (really a part of the
law of supply and demand). what is the
reason that after two centuries of slight
variation great change of ratio was in
aGgurated In 1SI3-a change more than
double any that had occurred since the be-
ginning OF the Christian era? Is it nothing
but coincidence that then, for the first time
IN the history Of our civilization, with the
bonds of international Intercourse greater
than ever before, the principal nations of
the world, with practical unanimity de-
stroyed the legal tender quality of silver?
Is IL not more rational to believe that the
price of silver in the markets has been
hammered down by the successive legis-
latfve blows of different nations? This is
the belief of all bimetallists both inde-
pendent and International; for only the
gold monometalliSts such as Mr. Sherman
has proved himself to be, declare that the
present price Of silver, being due to natural
laws uncomfortable by legislation, whether
lndependent or International, cannot be
raised by legislation, whether independent
or International To them a gold standard
with silver used for subsidiary coin is all
the future holds.
Now, If the voting intelligence of this
country becomes convinced, as seems IN
aVoidable. that the present ratio OF silver
10 gold Is due to adverse legislation with
regard to the former metal by the leading
nations OF the world. We shall then be
naturally led to the true issue of the cam
paign. viz: Can the United States singly
Undo the work accomplished by the United
states In conjunction with the other lead
ing nations of the world?
IF the restoration of the free and m
limited coinage of silver by the United
States alone will cause the price of silver
10 rise SO that one ounce of gold shall in
the markets OF the world be valued no
higher than sixteen ounces of silver then
all the dire results that are prophesied by
the opponents of that measure are but
imaginary, based as they are. If Mr.. Sher-
mans views are typical, upon the theory
that the market value of silver will be
Unaffected by such restoration of free coin
age. IT, however, the market price of sill
Yer. though raised. be not raised to the
ito of sixteen to one. then the fears of
disaster to the country felt by the op-
ponents of the measure will be partially
Justified. Although the difficulties they ap-
prehend will not be realized to the full, yet
sufficient financial disturbance Will be
caused to occasion much distress, and the
credit of our country will he greatly i'm
paired. This is the serious problem to
which we. the people of the United States,
have to address ourselves 1t behooves us,
then, to weigh carefully the opposing the
cries that are presented to us, for, as no
Identical situation appears in history, the
result of free coinage legislation Is but
speculative, no matter by whom presented"