The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1896-08-06

| IN this mornings issue a two-column
article on THE Silver Question" with
| diagram, which has previously ap-
| peared in The Investor OF this city. as
we'll as in some eastern publications.
| The diagram is entitled AN Object Les
| son. and purports to be "a graphic illus
tration of why the price of silver has de-
| clined so sharply in late years" The OBJ
| fect of the article and diagram is to
| show that the fall in the price of silver
| bullion is not due to the Gemonetiza-
| ton OF silver but to its over produc-
| ton. and that consequently the opening
OF the minis to silver would not result
| in raising the value of the silver bullion
but only in stamping of fifty-three
cents worth of silver with the dollar
mark, and it's being made legal tender
for the payment of a dollars worth Of
: indebtedness"
To the candid reader who desires the
truth, the question is whether the dia-
gram fairly represents to the eye the
facts. and whether or not the increased
production there represented Is the
cause of the fall in price. as claimed.
or another cause existed which is con-
cealed
The most striking feature of the
chart" is not thas pointed out in the ar
ticle. but rather the striking resem-
blance of the diagram to the maps pub
lished by railway companies in which
their own lines are absolutely straight,
while the lines of competitors go wand
ering all about the surrounding country.
The line on the diagram representing the
worlds annual production Of gold" is
almost absolutely straight. The figures
accompanying it. however. show de-
crease in annual production from SO
million ounces" to "2,S million
ounces" and then an -Ancrease
to 30 million ounces" This de-
crease of one-half of the annual prod
uct of gold is represented by DETECTION
in the gold line of one thirty secondth
of an inch. while a smaller ratio of in
crease in the production of silver that
TAO milli., ounces It It's is rep.
resented by DETECTION in its
line of one inch, and a fall from
$40 cents" to go cents lin the price of
silver is also represented by detection
of an inch. What shall we say of a da-
gram which, while protesting to be
graphic representation of facts, so mis-
represents them? And what shall we
say of a campaign of education which
would educate by such misrepresenta-
tons?
If it is true, as claimed that the in
crease in the annual production of silver
is the cause of its fall in price. does it
the annual production of gold, from Sc
million ounces to 2.S million ounces must
have made a corresponding increase in
the value, that is, the purchasing power
of gold? And must not the increase In
the product Of gold from 2.S million
ounces to million ounces have caused
gold to fall? If So what becomes of the
claim of our single gold standard friends
that gold alone has remained stable in
value while everything else has
changed?
Did time and space permit it would
be interesting to examine further this
chart" by which the gold men propose
to sail on the troubled sea of this peo-
pies campaign for a money that shall
be "as honest to the debtor as to the
creditor, as kind to the laborer as to
the capitalist" AS 1t is, I can only call
attention. in addition to the misrepresen-
tation l have pointed out, to the in
completeness and Indebtedness OF the
diagram.
The article accompanying it processes
to review the history of silver from 1892.
Why was the diagram not equally COM
plete? And why was il not brought
down beyond 1888? Again, the annual
rroduc. of silver is given definitely at
certain periods in million ounces, and the
price, It what seems by the diagram
to be about the same time, in cents per
ounce, but the corresponding dates are
given 1851 so" 1866 10" "1SS1-S5," etc.
somewhat indefinite as to the periods
given, as we'll as those omitted, and sug
gest that these detached and irregular
periods may possibly have been SO Sc
lected for purpose.
1t is evident to any thoughtful man
that diagram such as this object Les
son' claims to be. in order to be of any
value should represent all fluctuations
on uniform scale, should cover the
whole time discussed and represent ev-
cry year during the period covered AL
so that it give not only the two lines of
Facts, which it is assumed bear the rc!a-
ton Of cause and effect but also all
others that can fairly be supposed to
have any influence.
This brings us to the noteworthy ex-
ception" that the article in question
makes. The writer states that the price
Of silver fell off lin about the same ra-
ito as production increased. with one
noteworthy exception in 1890. when by
the operation of the Sherman act for.
brief period the price of bar silver
was artficially forced up"
This is the second striking feature"
OF the diagram and article that the au-
thor is obliged to acknowledge another
law acting on price besides the law of
supply, and that is the law of demand.
which he had sought to ignore
IN view of the increase in the price Of
rIlN q d. there lHOlcated OF from 81 TO
l04 cents per ounce, by the purchase of
IL limited quantity of silver, can he he
absolutely certain that free coinage will
not MT the price to par With gold a
10 TO /! Or il congress should doubt the
influence of free coinage being sufficient
to at once raise the silver of the whole
world to this point, or should they fear
the deluge Of silver from abroad that our |
gold friends prophesy, could we not rely |
on the patriotism of our protactionist
Republican friends to assist. Il need he !
IN putting tariff on imported silver. |
ABOUT equal to the difference between !
us pulAoh ana coin value, thus restrict. |
ing importation, stimulating our min
ING industry and giving what would |
practically be large seigniorage on all I
imported silver as a valuable source of :
income TO the government?
IN conclusion, I would ONLY ash, !
whether it is possible that the authors
Of the article and diagram re !
lerfed to can possibly deny that
demand as well as supply has |
copyrighted to fix the price Of silver and !
Gold as Of everything else? As the value |
OF the morse has been reduced by the use |
o! e!ectric cars and bicycles, so the price |
Ct silver has been depressed by its de- !
by Germany, its restricted /
use by the Latin union, the closing of ,
our own mints. and later the nlints If
Ihdia against it, and finally by the re-
peal OF the Sherman law, which caused !
a drop that must be still remembered bv
all who have given any attention to the
SunJect LOUIS *. WEBB