The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1896-10-05
HOW PROSPERITY WILL COME.
Bimetsilism Will Steady Prices -Keeping
Two the Metals Together.

7OW Y WILL So"C.
Bimetsilism Will Steady Prices -keeping
Two the Metals Together.
From the Cincinnati Enquirer:
Crystal, N. d., with thousands of
others, should like to be enlightened
upon the following questions:
/. Through what channels will pros
perity come in the event Of free coin
age?
2. What laws will preserve the
equality of the two metals?
3. What will be the effect on foreign
silver and what will prevent specula-
ton in foreign silver by having it
coined into American dollars?
J. l.. CARR.
l. The fundamental trouble with all
productive enterprises at the present
time is found in the fact that year by
| year general prices are falling to a
lower and lower level. Every manu-
facturer knows that it is impossible
to conduct a profitable business when
his products are constantly declining i'm
price. 1t is agreed by all political
economists that a general fall in prices
really means an appreciation in the
value of one The continued de-
! cline in general prices since 1873 in
all gold standard countries means,
therefore,, that the volume of money
has been insufficient to keep pace with
population and business. The great
virtue that bimetallists claim for the
reconciliation of silver Is that 1t will
so increase the supply of the money
material that our money volume will
| be adequate to keep prices steady. The
minute we steady prices prosperity will
set in, because whenever a manufact-
urer can sell his goods for a greater
price than they cost him to produce
no other ENCOURAGEMENT is necessary
to induce him TO manufacture goods.
The farmer Is in the same position as
the manufacturer, and, whereas, he
now finds his crops cost him as much,
If not more. than he can sell them for,
owing to the steady appreciation in
the value Of money. he will find then
conditions reversed and his crops SELL
ing for more than they cost him..
2. Bimetallists claim that the equal
ity Of the metals in value at the legal
ratio will be preserved by the option
which bimetallism gives to all persons
to use either metal they may
choose. Should there be a ten
, dency for gold to rise in COM
parison with silver the demand for
monetary purposes is thrown upon sill
yer and withrawn from gold until par
ity Is secured. Should silver show a
tendency to become more VALUABLE than
gold then the demand is taken from sill
yer and put upon gold, with a like re-
suit. This action in regard to silver
and gold is in no wise different from
-. - 4, t. @tL1, r-Lo-o @.1 -,
ticle is a substitute for another. Both
wheat and corr can be nae into
bread. and beth will sustain life. II
~lcat should become very scarce the
fact that cornmeal could be used would
prevent the price OF wheat rising be-
yond q certain figure. People would
begin 20 substitute corn bread fol
wheat bread. and thus the demand 70,
wheat would be decreased. The trouble
with b sinEle gold standard Is that her
gold began to go up silver could not bs
substituted, and therefore all the ma.
tions On a gold basis have been striv.
ing TO secure as much as possible OF the
limited supply Of gold on hand, with
the result that gold keeps steadily
mounting higher n higher.
3 You must understand that the price
of silver in the United States would bt
the price the world over. No one woulc
bring silver here to be oined from AM
foreign coultry, becauses the price IN
the foreign country would be the sam.
as that here, less. perhaps. charges o
transportation, etc. Besides this. n,
foreign coin would come here to be re
coined. because in most countries thei
ratio Is higher han l to Is, and henc
= there would be a loss in bringing |
here 10 be coined. Foreign subsidiar,
y silver coin. Of course, would not come
" There is also no great stock OF silve
" bullion, that is. uncoined silver, any
. where in the world. The silver basi
countries need all the silver none
they nave on hand. Under these cir
cumstances you will perceive that n
. speculation would be possible.