The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-13

to a silver basis and raise gold to premium.
1t is no reflection upon our sister republic
to remind our people that the United States
is much greater than Mexico in area, IN
is absurd to assert that the United States
Is not able to do anything which Mexico has
failed to accomplish. The one thing neces-
sary in order to maintain the parity is to
furnish demand great enough to utilize
all the silver which will come to the minis.
That Mexico has failed to do this is no proof
that the United States would also fail.
1t is also argued that since number Of
the nations have demonetized silver, nothing
can be done until all these nations restore
bimetallism. This is also illogical. 1t is I'M
material how many how few nations have
open mints, provided there are sufficient open
minis to furnish monetary demand for all
the gold and silver available for coinage.
In reply to the argument that improved ma
chinery has lessened the cost of producing
silver, it Is sufficient to say that the same
is true of the production of gold and yet,
Notwithstanding that, gold has risen in value.
AS matter of fact, the cost of production
does not determine the value Of the precious
metals, except as 1t may affect the supply.
II. for instance, the cost of producing gold
should be reduced 80 per cent without any
increase In the output, the purchasing power
of an ounce of gold would not fall. So long
as there is a monetary demand sufficient to
take at fixed mint price all the gold and
silver produced, the cost of production need
not be considered.
1t is often objected that the prices of gold
and silver cannot be fixed in relation to each
other because of the variation in the relative
production of the metals. This argument also
overlooks the fact that, If the demand for
both metals at fixed price is greater than
the supply of both relative production becomes
immaterial. In the early part of the present
century the annual production of silver was
worth, at the coinage ratio, about three times
as much as the annual production of gold;
whereas, soon after 1849, the annual produc
ton OF gold became worth about three times
as much, at the coinage ratio, the annual
production of silver, and yet owing to the
maintenance of the bimetallc standard, those
enormous changes in relative production had
but slight effect upon the relative values of
the two metals.
MINE OWNERS CONSIDERED.
If 1t is asserted by our opponents that the
free coinage of silver is intended only for the
Deneht of the mine-owners, it must be re-
membered that free coinage cannot restore to
the mine-ownefs any more Than Genor lliZation
took away and 1t must also be remembered
that the loss which the demonstration of sill
yer has brought to the mine owners is insig-
nifcant compared to the loss which this policy
has brought to the rest of the people The
restoration of silver will bring to the people
generally many times as much advantage as
the mine-owners can obtain from 1t. While
1t is not the purpose Of free coinage to espe-
cially aid any particular class, yet those who
believe that the restoration of silver Is needed
by the whole people should not be deferred
because an incidental benefit will come to the
mine-owner. The erection of forts, the deep
ening of harbors the Improvement of rivers
the erection of public buildings-al these
confer incidental benefits upon individuals
and communities, and yet these incidental
benefits do not deter us from making ap-
preparations for these purposes whenever such
appropriations are necessary for the public
good.
There are some who, while admitting the
benefits of bimetallism, object to coinage at
the present ratio. If any deceived by this
objection, they ought to remember that there
are no bimetallists who are earnestly en-
deavor1ng to secure 1t at any other ratio than
10 to l. We are opposed to any change in the
ratio for two reasons: First, because
change In the ratio is not necessary. A change
would produce injustice, because if effected
in the manner usually suggested, it would
result in an enormous contraction in the VOL
ume of standard money.
H. for instance, it decided by interna-
tional agreement to raise the ratios through
out the world to 80 to l, the change might
De enected in any one of three ways: The
silver dollar could be doubled in size, so that
the new silver dollar would weigh thirty-two
times as much as the present gold dollar: or
the present gold dollar could be reduced one
half in weight, so that the present silver dol
lar would weigh thirty-two times as much as
the new gold dollar; or the change could be
MADE by increasing the size of the silver
dollar and decreasing the size of the gold
dollar until the new silver dollar would weigh
thirty-two times as much as the new gold
dollar. Those who nave advised change in
the ratio have usually suggested that the sill
made it would necesstate the recoinage Of
four billions of silver into two billions Of
dollars.
There would be an immediate loss Of two
DllIlons OF dollars, either to individuals or
to the government, but this would be the
least of the injury. shrinkage of one-half
IN the silver money of the world would mean
shrinkage of one-fourth in the total volume
OF metallic money. This contraction by in
creasing the value of the dellar would yirtu-
ally increase the debts of the world billions
OF dollars and decrease still more the value
of the property of the world as measured nv
dollars. Besides this immediate result such
change in the ratio would permanently de-
crease tne annual addition to the worlds
supply or money, because the annual silver
product. when coined into dollars twice as
large, would make only half as many dollars.
The people Of the United States would be
injured by change in the ratio, not because
they produce silver, but because they own
property and owe debts and they cannot
AFFORD to thus decrease the value Of their
property or increase the burden on their
debts.
In 1876 Mr.. Carlisle said: mankind will
be fortunate, indeed, If the annual production
of gold and silver coin shall keen pace with
the annual increase of population and in
dustry."
NEEDS FOR MONEY.
repeat this assertion. All of the gold and
silver annually available for coinage when
converted into coin at the present ratio will
not IN my judgment more than SUNNY orr
monetary needs In supporting the act of
1890, known as the Sherman act Senator
sherman, on June of that year. said: 'Un-
ucl the law VI feD 1873, the purchase of
~, 100000 worth of silver bullion a month
has, by coinage, produced annually an ay-
erage of nearly So, 900, 600 month for period
of twelve years but this amount in view of
| the retirement of the bank notes, will not
increase our currency in proportion to our
increasing population. If our present cur
rency is estimated at 81 400 900 600 and our
population is increasing at the ratio of 8
per cent per annum, it would require s42-
0OO,O 900 increased circulation each year to
keep pace with the increase of population
but, as the increase of population is accom-
panied by still greater ratio of increase of
wealth and business, it was thought that
an immediate increase of circulation might be
obtained by large purchases of silver bull
lion of an amount sufficient to make good
the requirement of bank notes and keen pace
with the growth of population. Assuming
that $54 COO, GOO year of additional currency
is needed upon this basis that amount is
provided for in this bill by the issue of treas
ury notes in exchange for bullion at the mar
ket price,
I If the United States then needed more
than $42, 600 annually to keep pace with
population and business, it now with a
larger population, needs a still greater an
| nual addition; and the United States is only
enc nation among many. Our opponents
make no adequate provision for the increas-
ing monetary needs of the world.
In the second place. a change in the ratio
is not necessary. Hostile legislation has de-
creased the demand for silver and lowered
its price when measured by gold while this
same hostile legislation, by increasing the
demand for gold. has raised the value of
gold when measured by other forms of prop
0rfy No %NI6 hot