The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1896-09-05
THAT DREADED INFLUX.
Significance of the Increased Production
of Silver Under Free Coinage.
A subscriber %propounds the following
,o,r

Significance of the Increased Production
of Silver Under Free Coinage.
A subscriber %propounds the following
inquiry:
Surprising that this country went for free
silver in November, the mines of this country
would more than triple their present produc-
ton. Would not this influx of new silver have
some effect upon its market valued
l am a free silver Democrat, and the above
question is the only one that l cannot ~satisfac-
torily answer. TIL bankers and leading Re
publicans around here are winning more votes
by the above argument than any other. If you
will answer it, / think you will do the cause
good.
That question is very easily answered.
In the first place, there is not a shadow
of foundation for the statement that the
production of silver would triple under
free coinage. Our present output is,
roughly speaking, 80, 600, 900 ounces a
year. If any man knows where 1OO,-
600, 900 ounces more can be produced
each year, the country would be delight
ed to have the benefit of his knowledge.
The statement is absurd. Secondly, such
all increase of production would be in
the highest degree beneficial. Silver is
wealth, and the more wealth the coun-
try can produce the better it will be for
the country. The average goldite speaks
of silver production as though it were a
nuisance to be abated, as if i'll some in
scrutable way it cast a blight upon the
nation. Thirdly, there will be no
increase unless the value of silver
rises. There would be nothing to slim
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, a very large increase Of
production would affect the market price
of silver measured i'll gold. If the in
crease were large enough, it would
break the ratio Of 16 to 1. The effect of
that would be to send gold to a premium
over silver, and our metallic money i'll
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 q
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 a
loss on the exchange. This is what In
dia, China, Japan and Mexico are now
doing. Thus the premium on gold would
operate as a 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 Il surplus products are
sold, and u wheat, cotton, petroleum,
hides and breadstuffs would exchange
for more gold han they do now.
Finally, whether gold went to q pre-
MUM or not, the remonetization of sill
yer would enable us to compete in the
European market Oh more equal terms
with silver using nations. In our cur
rency an ounce Of silver would represent
81. 80, no matter how silver might rate
with gold. If we sold a bushel of wheat
in London for an ounce of silver in
American money it would be worth
81. 80 instead of IS cents as it is now.
Under present conditions, when an East
Indian sells a bushel of wheat for an
ounce of silver, it means as many rupees
az it ever did. These rupees will pay as
much taxes and debt as they ever would
i'll 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.
The American, competing with the
Indian, also gets an ounce Of silver OF
its equivalent. But this equivalent il
our appreciated money l.. a. before
stated, only 6S tents. This IS cents vii
buy for the American farmer as luucl
III some things It's /. ~ would 20 Year.
ago, but it will not bny us much Of al
things. Some prices have fallen mor'
than others. Educational charges, doc
tors bills, lawyers fees and the lik'
have fallen very little, if any. Debt
remain the same, while taxes have actu
ally increased. National Bimetallist.