The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-08-07

THE DEMAND FOR GOLD.

correspondent asks why foreign own
ers OF silver coin would food this market
when the value placed on silver by the
United States government would make
tina. sfe value svsrywhsre.
rhs answer to this Is that I, would not
make It the "valus' everywhere.
fhs price OF a pair Of shoes in Central
America II SIS; that does not make them
worth SIS every where. less the freight
Il WI be replied that this reasoning
does not hold good because the govern
nent does not guarantee the price OF the
shoes. and the demand Is limited.
The government does not guarantee the
price now: IL IL fixed by virtue OF the
commercial law. The demand Is limited.
as The demand for everything is limited.
but the demand cannot be said to be less
than the supply In Central America so
long as many more than 100000 people
are going barefooied because they have
nothing, thar IL wanted. 70 give in return
for shoes
The demand for silver Is limited: the
demand for gold 10 limited. When the
demand for gold II greater than the sup
ply II advances In price. tina, IL to say.
the rate Of interest. It's earning capacity
Is increased. When the demand FOR gold
Is less than the supply the rate OF inter
est decreases. The rate Of interest for
money for commercial purposes Ii less
now than 1t has ever BEEN
Some people mistake . demand for
profitable occupation 70 be demand for
gold. when man Gays that he would
rather have gold than be without IT, no
expresses q wlsh but he does not create
a demand.
Ten thousand foreign-born citizens
might have The most ardent desire to re-
visit their fsthsrland but the expression
of that wish could hardly be considered
a demand for steamship transportation.
There y. 20 put II another way. an al
most natural desire to own land; there
are tens OF Thousands of people in this
country who would be glad to own land;
thers 10 any quantity Of II lying around .
much of II In not producing enough to pay
taxes Tot nobody wouii say that. Just
now. "thsrs II q great demand for land
1t h not gold or silver the people are
demanding. They want employment for
their hands. their abilities. their teams.
their houses. their lands. their tools. their
stocks Of eoods-cres,e a demand for
them, and there viii be ample money
found 70 Day for than.
Nobody In Seattle in 1853 or 1890 both
49, sha ~.
or the dollar OF our daddies. or the pur-
chasing power OF dollar. Everybody
Was too busy; everybody felt confidence
In the future % Seattle. Capital poured
In freely, men borrowed money without a
moments hesitation. bricklsysrs earned
a. IS and Sc a day and lumber sold AZ a
handsome proft. There Il more money
In the country by many millions than
there Was then.
when sl this furry IL over. when the
people who have saved their money are
assured that. IN return for the gold they
are willing 60 put out In investments. IN
manufactures. In other avenues OF trade.
they win not be compelled to take depre-
ciated silver. then capital viii come forth
once more. labor VIII be employed again.
and prices viii OF themselves Be restored
20 a normal condition.
How. VIII anybody tell Us can the pas
sage Of a law permitting the government,
90 say that the ratio Of silver TO gold shan
be 10 20 when everybody knows Il IL not
90. ard permitting employers 20 pay lahoI
In sslver--how can THIS cause people e
have more confidence. and induce activity
in enssnessf