Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1896-08-26
The Free Coinage Catechism.

The Free Coinage Catechsm.
The purpose of this series of ques.
tions and answers is to put, in simple
form, the problems raised by the free
coinage controversy, with a plain an
swer 10 each. All statistical facts given
are transcribed from official publica-
tons, and list of oil authorities used
is published at the end of the catechism.
Q. What is the fundamental claim
of the free coinage advocatesp A.
They claim that the amount of money
in circulation has been decreasing
since the demonetization of silver, and
that this decrease has caused a general
fall in prices.
Q. Is it true that the money supply
has been decreasingp A. 1t is not.
Q. What are the factsy A. So far
as the United States are concerned,
there has been an enormous increase.
In 1860 the money in circulation in
this country was S442, 1O2,4 AIT. In 1872
it was S7Ss, ,3O5, $40; by the treasury
bulletin at the opening of the present
month it was 81, ,521, ,5SS, ,2S8.
@. What does this showY A. 1t
shows that our money supply has in.
creased 240 per cent, as compared with
1850 and 106 per cent. as compared
with 1879.
Q. Has the money supply increased
faster than the population7 A. Very
much faster.
Q. How do you prove this? A. By
dividing the total money in circulation
at each date by the total population of
the country at the same date, and thus
finding the circulation per capita.
@. What does such process show?
A. The per capita circulation of the
United States on July /, 1860, was
Sl4 O6; on July 1, 1872, $1S 70; at the
opening of the present month in 1895
it was $21 80.
z, But has not the money supply
of the world at large been decreasing?
A. On the contrary, it has been in.
creasing rapidly.
.. How is this proved2 A. BY the
statistics of new gold production.
G. How large has the production
t'een? A. The reports of the director
of the mint, which are acknow edged
authority, show thatfiom 1878, to 1894,
inclusive, the worlds total new gold
production has been S2,526, 1884, $50.
q. Is this new product OF gold in.
creasing or decreasing? A. 1t is in.
creasing with enormous rapidity.
9. Give the figures. A. In 1878 the
world gold production was 500 200 900;
in 1880 it was $lO6, 4S6, 900. In the year
1890 it was $11S,S49, 900. For 1895 the
exact total is, not yet complied, but il
closely estimated ut $780,
Q. What does this meanp A. It
means that the amount of gold annu-
ally added to the worlds money sup.
ply has more than doubled in the last
twenty three years.
Q. Is not this rate of annual produc.
tion liable to decreasep A. On the
contrary, all experts in American, Aus
tralian and South African gold fields
look for further and very heavy in
crease over the present rate of produc
tion.
Q. But hasn't the disuse of silver
with full coinage facilities cut down
the total annual addition to the world g
metallic money supply? A. 1t has not.
9 Why2 A. In 1878 the world e
gold production was $96, ,2OO.O 900; its
silver production was 1881, 800, 900; total
$l7S,0O0,000. Last year the production
of gold alone was $199, 100000.
Q. Was not the combined annual
production OF gold and silver larger
than this in the "bonanzal" A. II
was not
Q. What was the highest record OF
that period? A. Between 1856 and 1850
the worlds average annual production
of gold was S134, ,OSS,O 900; of silver,
S37,61S,OO0; total, $171, ,7Ol 900, or less
by 1927 100000 than last year g produc
ton of gold alone.
Q. What are we to say then of the
argument that the money supply since
silver free coinage was abandoned, has
been contracting? A. That 1t is utterly
false as applied to the world at large
and especially so as applied to the
United States.
@. Is it true. nevertheless, that the
price of wheat and many other farm
products has fallen heavily A. 1t is
G. How are such declines, in whea
for instance, to be explained? A. BY
the enormously rapid increase IL
grain growing area throughout th,
world.
@. Has this increase been especially
rapid since 1872 A. The increase il
grain growing area in this period, espe
cially in North America, South Ameri
ca and Asia, has never been approach
ed in any equal period in the histor!
of the world.
Q. How do we judge of actual com
petition in the sale of wheatp A. B,
the supplies thrown annually ON tn
worlds great distributing markets.
Q. What market in PARTICULAR A
England, where most of the buyin
nations 90 to buy their grain,