Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1896-11-01
sILvxe Ann WHEAT

4uo cCcIbuuEEy III Nntut hus hui
nisheda text for many editorials in
the Mckinley press in which they
have sought to prove that there was
no relation between the price OF
wheat and the commodity value cf IN
ounce OF silver. The relation be.
tween the price Of the two articles IS
clearly shown in the following ex-
tract.from an article. written by ex-
Congressman Bartine. in a recent is
sue OF the National Bimetallist. He
says:
The relations between silver and.
wheat are-simply these: American
wheat is sold in competition with.
wheat grown in India. Insthat coun-
try the average price OF wheat, meas
urcd by the rupee Ia silver coin)
has remained practically the same
through n long course OF years.
Therefore there must be u close rela-
ton between the price OF the two in
the London market. But this does
not mean that there are no diver
gencies at all. II the price OF wheat
at Bombay measured in silver were
always exactly the same, then silver
and wheat would preserve almost
identical relations all the slime. But
such is not the case. Wheat fluctu-
ates at Bombay. For the last TWEEN
ty-iive years the average price Of
wheat in Bombay has been fairly
preserved. But the price there has
been affected by crop conditions,
speculation, etc, the same rs in other
markets. Accordingly, we find THAT
some years wheat has been MS much
as 3oipoints above the normal and
other years 1t has been 80 points be-
low. AS the silver price variesym
Bombay, the silver price will likewise
vary in London. But it is rs plain rs
light that there is u relation, and a
very important one between the
price Of silver and the price Of
wheat.
When silver rises in London, so
does the rupee, Suppose that the
American mints were to be open and
silver were'to rise to 81! % an ounce.
The English wheat importers, instead
Of buying lG or Is rupees with Il
pound sterling. could only get about
ii. Hence he could only buy two
busnels Of wheat in India for the
money that will now buy three BUSH
els. In other words, East India
wheat would cost about go per cent
more i'll London than it does now.
IL tEis be true, and it undoubtedly is,
American wheat would also be worth
90 per cent more in the London mar
ket than it is now.
This, however, does not tell the
whole story.
While silver lis treated as a mere
and made the football Of
speculation, the rates OF exchange be-
tween England and India will be in
Il state OF constant nuctuation. When
silver rises, the rupee does the anne
When silver falls. down goes the Fu.
pee.
AS the tendency OF silver under
such circumstances ia generally
the course OF the rupee
tends in the some direction. When
ever the price of the rupee in Lon
don falls, thefc~is a direct induce.
ment to the English importer to cx.
change his gold for rupees and buy
wheat in India, rather than buy it in
the United States, because there is n
profit on the exchange. That is to
he makes | per cent, or half OF l
per cent, by the simple act Of c1-
changing his gold for rupees, while
the latter will buy just ms much
wheat at Bombay. So, a rise OF silver
tends to check exports from India.
whiloa fsll stimulates them. THIS is
so PLAIN e proposltionb that Il ia a
mystery how amy ono whose attention
is directed to the matter can question
il. @E.
, Tho heavy exports Of wheat from
India began With tho heavy decline
OF silver. all every rise OF the metal
has checked those exports. In 1893
the East Indian mint stopped coming
silver on private account. Silver mt
once dropped nearly % per cent. But
the rupees already coined did not de-,
cline so much. Lntterly they have
remained nearly sable. and the tx
ports of whcnt from India have fallen
oil considerably. This is not the on
~ cause, but it undoubtedly one OF
tho causes.
The same principle applies TO cx-
ports OF wheat from Russia nnd Ar
gentino. Both countries use papcr
considerably deprecated below the
gold level but less Deprecated in it's
purchasing power. When tho pre-
MUM on gold rises, u pound sterling
will buy more Of Russian or Argcn-
tue wheat. When the premium or
gold falls it will buy less OF the paper
money Of hose countries and. there.
toic, less Cftheir wheat. II seems nj
most absurd TINT The Argentine farm
or should object 10 having Ills paper
nioncy Ooiii".rc'i An.h ,.is, GuG lc 10
not absurd ih' it. ri;lie3i lie knows
that when the gold value Of his paper
money rises. there il less inducemcnt
to tho English importer TO buy the
products Of Argentine. Hence IL In
to the interest Of the United States To
restore silver. brcausc the effect will
he to reduce the demand for gold and