San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-08-11
BIMETALLISM.
is bimetallism?


government minis should coin gold or
silver at the demand of any owner of
it, and that ratio of value being es-
tablished, say, 16 to 1, gold will flow
in for coinage IL it is more abundant,
and silver IL more abundant, so that
the two metals will be kept automatic
ally at par at the established ratio.
Is the theory sound?
1t was possible to believe il sound
twenty years ago. For very long pc
riod the relative values of gold and
silver had been fairly constant at 16 to
THAT Is to say, an ounce or other
unit Of gold had long been worth 16
times as much as the same unit of sill
yer. 1t was not unreasonable, there
fore, to believe that the automatic pro-
cess described would be effective. But
of late silver and gold have been pro-
duced in increased quantities (silver
far more than gold. and their relative
values are now as 81 is to 1. This de-
parture in values is so wide that reli-
ance on the automatic balance at 16 to
1 becomes impossible.
Could any other ratio be established.
No. for the reason that no one can
tell what may be the cost Of the pro-
duction of gold or of silver in the fu-
ture. And also for the reason that all
the great nations have discarded silver
as standard of value and that lead
ing cause for the parity of earlier
years is not now operative.
What would be the effect of free
coinage of silver at 16 to L? E
10 retire gold absolutely. The hold
er of ten dollars in gold could buy with
it silver enough to make nearly TWEEN
ty dollars in silver coin. Instead of
paying out the ten dollars in gold he
would buy silver, and have twenty
dollars to use. The effect of this would
be to make silver the only basis of our
currency.
What would become of the gold?
1t would go to the countries where
gold is used for currency. They
would demand it for our debts to them
made payable in gold, and for all mer-
chandise sold to us. On the other
hand, they would pay their debts to
us in silver, that being our currency
and legal tender.
Is not silver as good basis for the
currency as gold?
The substitution of silver for gold
could not be of advantage. There is
no reason why silver as standard
should be preferred, and there are
good reasons why gold should be. The
fact that gold is the standard of the
civilized world is a mater of import
ance. A constant standard is needed
as between nations. In the absence
of such a standard, exchanges are al
ways manipulated and much extra eX-
pense put upon the community.
The period of adjustment TO new
standard would be time of disaster.
Railroad bonds, principal and inter
est, are largely payable in gold. If the
railroads should get their revenues in
silver they would be obliged to in
crease charges to the public to balance
the depreciation of the standard, or go
into bankruptcy. Merchandise would
rise in price, and it would rise faster
than wages and the products of farms.
There would be loss to people of fixed
incomes, loss to the beneficiaries of
life and other assurances, loss to pro-
ducers of all kinds and loss to wage
earners. Capitalists would become
timid and would lock up their funds.
A general paralysis of industries
would set in and the whole country
would go down hill" Probably TWEEN
ty years would be needed to com
plete the adjustment, during all Of
which period there would be great suf-
fering.
Has gold appreciated in value?
If it has, interest rates have fallen,
and the debtor class has gotten much
benefit that way. In whole sections
interest has fallen form II per cent
down as lew as per cent. Meanwhile
wages have fallen. Merchandise has
lallen because of improved methods of
manufacture. The rich man was not
benefited by the appreciation Of gold,
if there has been any, because Of
falling interest. The poor man has
because of falling interest and falling
prices. The farmer has suffered, not
because of supposed appreciation Of
that we want to prosper in all;
extension of railways in other coun-
tries and Of improved methods Of hus-
bandry have robbed our farmers Of
their earlier control of the grain mar
kets of the world.
May you not be actuated by selfish
interest in what you say?
Truly, yes. The prosperity of the
country is at stake. Our prosperity
depends upon the prosperity of the
country. We are selfish in the sense
that we want to prosper in all;
not selfish in the sense that we want
to prosper at other peoples expense.
If all the business of the world is to
be done with gold, is there enough Of
it for the purpose? -.
Yes. The output Of gold is not as
much as was the output Of both gold
and silver twelve years ago. 1t is in
creasing every year, and banking IA
cilities increase in a greater measure.
We should be able to get on with gold
as currency if the other great coun-
All