The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1896-08-28

which it is given an exclusive
privilege of settling debts. To
illustrate this proposition more
fully, let us suppose that the
government could pass a law de-
claring that corn should not be
used as an article of food and that
wheat alone should be consumed
as bread stuff. What would be
the result? The demand for wheat
would increase, and in consequence
the price Of wheat would advance,
while the price of corn woull 60
down to the level of the demand for
it as a commodity other than a
bread stuff. Thus the law Of sup
ply and demand would govern the
price of each grain. From wheat
having been declared the only
bread stuff, the demand for it
would increase and consequently
it's price would advance, while the
demand for corn having been de-
creased the price would fall. Then
to carry this supposition further.
Suppose this state Of affairs to exist
for twenty-three years, for instance
from 1878 to the present time.
The holders of wheat would be
able to demand whatever price they
chose, and the consumers of bread
stuffs would be forced to submit to
their demands, while the holder of
corn could only get what was offer.
ed for his grain, since its consump-
ton is regulated by legislation.
Then suppose the discrimination
against corn were removed, and it
were allowed to be used as an
article of food, the price of corn
would suddenly raise from an in
crease in the demand, while the
| price of wheat would fall, since the
demand for it would be lessened.
When the same laws of supply
and demand are applied to gold
and silver as money metals, SIM
| liar results will be witnessed. In
1878, by an act of congress, silver
was demonetized, or in other words,
was no longer recognized as a pri-
mary money metal. AT that time
silver dollar of 371.25 grains
pure silver, or 412.5 grains Of
standard silver, was worth $l,004
in gold, But by that act the de-
mand for silver, was decreased,
and its price gradually declined
until year ago it was worth only
49.1 cents in gold. Or perhaps
more correctly speaking, the de-
mand for gold having been in
creased by legislation, its purchas-
ing power was increased to the ex'
tent that it would buy twice as
much silver as it would before the
latter metal was relegated from 9
money metal to a commodity,
Now suppose this embargo against
silver shall be removed and it shall
be recognized as primary money
what will be the result2 The de.
mand for silver will be increased
and its price will advance, while
the demand for gold will be lessen
ed and its purchasing power vii
fall. The price of both these met
ais will then be governed by The
law of supply and demand. They
will tend to regulate each other
and as the demand for Que increas'
es or diminishes its price, will rist
or fall, The final result will bt
that the two metals will circulate
side by side, each governing the
price of the other, and as the sup
ply of silver in the world at tht
present time is some sixteen ounce
to one Of gold, that is the price tn,
laws of supply and demand would
dictate III it were recognized as
primary money, without any legis
lative restraints. Hence with leg
islative discrimination in favor o
gold removed, the price of the tw'
metals would speedily adjust itsel
in accordance with the supply anC
demand, resulting eventually in
most perfect system of bimetallism