The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-04-08
STRONG POINTS WELL PUT.
E. Gerry Browns Discussion of
Money at New England
Town Meeting.
A REMARKABLE LITTLE BOOK.
CONTINUED from last week.
CHAPTER v.


point; he now changed the ground of the
discussion by saying: If the value Of
any commodity, or OF money unit, is
determined by the economic law OF sup
ply and demand, it is idle to talk about e
legal ratio between gold and silver, when
an alteration in the supply of silver as
related to gold would, of course, alter the
market ratio between them, even if the
mint was open for coinage at the legal
ratio"
well argued from your premises, my
friend" replied the editor; and if your
premises were correct, your conclusions
would be correct. You speak of the alter
alton in the supply, but you ignore the
factor of demand. The demand would
utilize all the supply at the legal ratio
Of 16 to L.
Let us hear what you mean by that
legal ratio of 16 to L. >" shouted voice.
Previous to 1873 if two persons came
to the mint, the one having certain
weight Of gold and the other having Is
times that weight in silver, then each
was on an equality under the law; each
could carry away the same amount OF
coined money. Sixteen to l is the COM
less than that-15.98 to L."
ct must be clear to any one" said a
farmer, that so long as the supply of
either metal did not exceed the demand
for it, the relation or ratio of each to the
other could not vary from the price
named by the law; nobody would sell it
for less than the amount which the law
gave him for it in money"
For the whole period that the minis
were open" said the editor, "the supply
of gold and silver brought to the mint
for coinage never exceeded the demand
for it's use as money units; on the con-
trary, the demands of business brought
into existence paper promises to pay
gold and silver, and business was forced
to utilize them and pay the same inter-
est for the use of the paper promises as
was paid for the gold and silver
you will not deny that the ratio be-
tween gold and silver was changed in
1884 and 1872" said the banker.
Certainly not" replied the editor;
land both changes we're made in the gold
piece; it's value was increased in 1884 and
decreased in 1897 No change was made
in the silver piece"
why was that" interrupted the mer-
chant
For the reason" said the editor, that
371A grains of pure silver was the fixed
unit, the l, that was called the unchang
able standard and remained so ill 1873;
and gold was the ratio. Uncle Sam was
giving more pork for shilling than his
foreign competitors who were also in the
business of minting and issuing money
units. While Uncle Sam was giving one
pound of gold for Is pounds of silver, the
French mint was asking and giving 1915
pounds of silver for one pound of gold;
and so gold went where it could get the
most for itself as it always did, and does,
and always will. Gold belongs to no
nation, and has no love of country. When
Uncle Sam revised his price for the ben
French mint, and went forty-eight one
hundredths better; in other words, Uncle
Sam bid 1898 pounds of silver for one
pound of gold 06 to ~ Then Uncle Sam
overdid the business and undervalued
silver as he does now. He sells it too
cheap. Foreigners give for it more than
he gives for it,
THAT explanation" said the farmer,
ANSWERS the gold men who say that very
little silver was coined previous to 1873,
and therefore the closing of the mint to
silver made but little difference"
The editor added, "The French mint,
up to 1878, gave any one three cents more
for the silver that made Uncle Sans dol
lar than for the gold which made Uncle
Sans dollar. The silver entered into
coinage in some country"
did the relative production of the
two metals vary?" was asked.
"There were remarkable variations in
the relative production of the two metals
in the period of seventy years prior to
1873, while the French mint was open to
the coinage of gold or silver belonging to
any one in the world at the rate of 1875
to 1. For example: In 1910, the world
| per cent gold; and the relative price was
1851 to 1. In 1855, the worlds produc-
ton was Is per cent gold, and % per
cent silver; and the relative price 15.7f
| 10 1. The two metals changed places
with each other
Take note of that admission said the
banker. After telling you that the law
could fix and maintain ratio, he admits
| that the ratio fluctuates. l say that
proves that silver had commercial
value"
Sound money men," said the editor
! talk freely about the commercial value
of silver prior to 1878; but that so-called
| commercial price resulted from the
competition between the minis of the
world. The ratio of silver and gold, OF
the commercial price Of silver as go.(
men call it, was within the limits of the
| highest mint price and the lowest min
price The commercial value Of silver
is the record of the condition Of legisla
ton with reference to it,
"Have the legal ratios in those coun
tries been changed? That is, if the gov
| eminent coins silver on it's own account
! is it at the same ratio as prevailed pre-
vious to 1872" was asked.
'"The ratio has not been changed il
any country and coinage is at the lega
ratio The United States for instance
bought silver at it's market ratio will
gold under the Sherman act; it coined i
at it's legal ratio; the difference between
the legal ratio ard the market ratio, wa
the government 'seigniorage' or profit,
answered the editor.
What is the market ratio of silver t,
gold?" was asked.
''The market ratio OF silver to gold i
the price of silver, measured in gold, O.
the market price of silver in gold" an
swered the editor, Just as the marke
ratio Of wheat to gold is the marke
price of wheat expressed in gold
Il mean, what is that ratio in figures?
continued the questioner.
"Thirty-two to one now said the edi
tor; "but it f1uctuates, and as gold is OF
makes no differences to US whose cata
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