The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-05-09

ware as is melted down from time to
| time.
But the relative supply and demand
for silver coined into dollars is very
| different. Silver dollars being the
equal Of gold as money and fulfilling
all the money functions just as well
as gold. they share with gold and other
representative moneys based on gold,
the monetary demand. And, on the
other hand the supply of silver dollars
| is rigidly restricted and limited 10 the
number already coined. Thus, while
the demand for silver as dollars is
greater than the demand for silver as
bullion, the supply is smaller. Natur-
ally. therefore, the value of silver coin
ed into dollars is greater than the value
! of silver bullion and must so remain
so long as the minis are closed to silver,
and the monetary demand is cut of
from the silverbuIion and while the
supply of silver dollars is arbitrarily
| limited.
Thus it is the monetary demand gives
a greater value to silver dollars than
TO the same weight of silver bullion,
and it is the monetary demand that,
acting automatically, gives TO the sill
yer dollar always the same value, no
more. no less. as the gold dollar. and
makes one at all times the equal of the
other. Any tendency of the two dol
lars to fall apart is at once checked
by the monetary demand for the dol
lar that tends to appreciate as meas
ured by the other decreasing while the
demand for the other increases. Thus
the cheapest tends to rise with the in
creasing demand and the dearest to
fall with the decreasing demand. For
example, should our silver dollar fall
in price, as measured by gold or green
backs, so that the silver dollar could
be bought for 80 cents in gold or its
equivalent, what would be the result?
Silver being equal to gold as money,
and going just as far as gold, all those
having payments TO make, and having
gold or greenbackS in their possession.
would hasten to exchange their gold
and greenbacks for silver dollars, for
as 500 in gold or greenbacks would
go no farther in making payments than
100 silver dollars, which they could buy
with 800 in gold or greenbacks, it
would be to their interest to make the
exchange, for by so doing they would
save 81 on every 500 rendered in pay
ment for purchases. Consequently,
the demand for silver dollars would in
crease while the demand for gold de-
creased, with the result that the parity
would be restored.
1t is this law, working smoothly and
automatically from day to day, that
keeps our 100000 Of silver dollars in
circulation the equal Of gold, that keeps
the gold and silver coin of France, her
SS50,00O,OOO of gold and $3.50, O00, 900 of
full legal tender silver, at a parity, that
maintained the parity of the two
metals when her minis were open to |
silver, and that would restore and |
maintain the parity of gold and silver
on opening our minis to silver. The |
fact that our silver dollar is worth Al |
cents more than the same weight of |
silver bullion, proves that the none
tary demand not only can, but does,
confer value on a money metal.
Yet we are told that silver Is unfit |
for money because if melted down it at
But why is this? Simply because by
the act of destroying the stamp on the
coin we demonetiZe it, and by so doing
we destroy the monetary demand
which makes silver as coin more yalu-
able than silver as bullion. The silver
so melted down is no longer available
for money, the monetary demand no
longer affects its value, and, as it can
not be recoined, the minis being closed,
it becomes dependent thereafter for its
value on the commercial demand for
silver.
That gold coin does not lose its value
Dy being melted down is simply be-
cause the act of destroying the stamp
loeS not destroy the monetary demand,
'or the minis being open TO the free
coinage of gold, the gold coin melted
Town can be reoonverted at any time
nto a gold coin. Consequently the
demand for gold bullion is the samesI
Is for gold coin. If gold bullion be-
comes less valuable than gold coin it
5 taken % the mint and coined. If (
bullion becomes more valuable than
DIN. the demand for gold as bullion is
supplied by melting down coin.
Give silver the same rights of coin
Ige as we now give TO gold and at
nee the bullion value of silver will be
quail to the coin value just as at pres
mt the bullion and coin value OF gold
5 the same.
4