New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-10-14

tt CEedSo SH6 suSm6uO 1OT SlY6Ts 8uuS Cne1e-
fore increase its value. On the other
hand, if silver is money and we demone-
tie it and take from it that quality
which was the cause for a large demand,
we decrease the demand and thereby de-
crease the value. Again, If gold and sill
vel together are money and we deprive
Esilver Of that quality, then all the de-
mand for money must unite on the gold
and thereby the demand for gold is i'm.
lmensely increased and its value cores
Epondingly increased. It is therefore ca
sy to see, how by law you can affect the
demand for . metal and thereby affect its
value. And yet, Bourke Cochran CLAIMS
that the demonetization Of gold by all
the nations Of the world would not af-
feet its value. This can only be ex-.
lplained on the theory that Mr.. Cochran.
and other like genius do not claim to.
know much about political economy and
have their Life insurance pre- sidents do
their thinking for them on this financial
question.
We had until 1878 blmetall1sm pure
and simple at the ratio of Is to 1, and
on February - of that year silver was
demoAetlzed. Now if our theory is cor
rect, then the price of silver must have
fallen and the price of gold must have
risen since 1873, because by demonetiza-
tlon the demand fol silver was decreased
and the demand for gold increased. We
will now examine table which is recog-
nized by our officials at Washington as
being correct and which gives us the ra-
ito of value between silver and gold from
1857 to 1894. In 1887 the ratio was
l4.94 to and in 1872 1t was 1858 to 1,
and during this entire period of 1876 years
the ratio never fell below 14.14 to 1,
never exceeded 1926 to L.. And never
reached 16 to 1 excepting in the three
years 1908, 1912 and 1913. For the first
70 years of this century the ratio fuctu-
ated around 151 10 1, amounting to a.
bout to cents ON the dollar. Now let
us see the huctuation since 1878 to 1894.
Immediately after demonstration the ra-
ito rose steadily. In 1898 it was 1890
to 1; in 1883 it was 1854 to /; in 1898
twas 26.49 to 1; and in 1894 it was
3s.58 to 1. That is to say, from 1871
to 1873 the ratio never fell to Is to l
and never rose to l6 to 1; or Ill ether
words the fuctuation never exceeded 3
cents on the dollar from the medium, while
from 1873 to 1894 the ratio rose from
1890 to 32.5S, a fall Of more than So
per cent. Since these tables show that
there was little variation in the ratio
prior to demonetization and that such an
immense variation has taken place since
decentralization we must conclude that
demonetization caused this great differ
ence.> A fact that demonstrates couclu-
sively to the ordinary mind that demon
citation of silver decreases It's price is
the fact that within 4S'hours after the an
nouncement in the British parliament
that the Indian mints ha ;5een closed to
the colnage.of silver, the price of silver
fell the world over from 50 to 6S cents
per ounce-a difference in two days five
times as great as the average huctuation
in 1876 years prior to 1878. And this
should he conclusive evidence that dem
OnetizatlOn was the cause Of the fall IN
the price of silver.
i All of the uncoined silver that was on
hand in 1873 and all silver produced af-
ter 1878 lost two of its principal use val
ues: Firstly, that ofmedium of exchange
and secondly that of legal tender quality.
i And all OF the uncoined silver and all of
the silver now produced was thrown en-
tirely upon the supply of silver for the
arts and industries and for coinage in
q those countries In which silver had not
q yet been demonetized.
I Thereby the supply for these purpo-
ses increased immensely and Its price
must fall. Thereby the metal value Cl
the silver dollar became worth less than
the metal value of the gold dollar and
ceased to be genuine honest money. And
our government now sought to MAINTAIN
the parity OF the dollars by exchanging
4 gold for silver. And as the productlor
: of silver appears to be greater than the
J demand for the arts and the lndustrie.
. the price of silver must continue to fall
Now take gold. Since all new none,
could only be made of gold the demant
for gold correspondingly increased ane
) its price rose. And as gold is now tn,
J only honest money or full value none,
!. lit is the only money Of ultimate rcdemp
J tion and the entire demand fer money O
: ultimate redemption is directed toward
Igold. When we consider that we hav,
) about 1000 millions Of silver and abou
) 1000 millions of gold in the world ant
! that the demand for money is now direc
! ted entirely to gold, that the 4,OOl
; millions Of gold have now to supply
s demand for money which could former
Ely be satisfied by the 5000 millions o
$ gold ana silver combined, it is easy t,
! understand that the value Of the pnr
!. chasing power of gold must have risel
T immensely. In arriving at this conclu
! sion, we give full weight to the laws 0
I demand and supply and claim that it j
. not we, but our opponents. who d,sre
! gard that law.
The intensity Of the demand for gol,
- lsince 1873sis evidenced by the fact thu.
{ while prior to / 873 much Of the annua
], product Of gold went into the arts, sine
: 1879 every ounce Of gold that has bee
!. produced has been coined and in addi
/ ton thereto TO, ,O0O, 900 has been with
], drawn from ttes arts and Industries il