Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1896-08-20
etary demand for all the gold and silver


available for coinage
In reply to the argument that improved
machinery has lessened the cost Of produc
ing silver, IL Is sufficient 10 say that tbs
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 valas
of the precious metals, except az it may
affect the supply II, for instance, the cost
O. producing gold should be reduced &C
per cent without any Increase in the out
put, the purchasing power Of an ounce OF
gold would not fall So long as there IL
a monetary demand sufficient 70 take at q
fixed mint price all the gold and silver
produced the cost Of production need not
be considered
Prices Of Gold and Silver.
It Is often objected that the prices OF
gold and silver cannot he fixed IN relation
TO each other because of the variation ir
the relative production of the metals This
argument also overlooks the fact that, II
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 an.
nual production Of silver was worth. al
the coinage ratio, about three times as
whereas, soon after 1s4e, the annual pro
duction Of gold became worth about three
times as much, at the coinage ratio, as the
annual production Of silver, and yet ow.
ing 20 the maintenance Of the bimetalliC
standard, these enormous changes in rela
tive production had but a slight effect up
on the relative values of the metals
IL 1t Is asserted by our .anpopents that
the free coinage- of-ssiSer is intended oniS
IoE JLss-nefseist Of tho mine owners, IL must
be remembered that free coinage cannot
restore TO the mine owners any more than
Decentralization took sway, and e must
also DO remembered that the loss which
the demonstration of silver has brought
TO the mine owners Is insignificant com.
pared to the loss which this policy has
brought to the rest Of tho people. The res
toration of silver will bring to the people
generally many times as much advantage
as the mine owners can obtain from IL.
While IL Is not the purpose Of free coinage
to specially 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 ben.
eft will come 70 the mine owner. The cree
ton Of forts, the deepening of harbors
the improvement of rivers the erection OF
dental benefits upon individuals and com
munities, and yet these incidental benefits
do not deter us from making appropria
tions for these purposes whenever such ap.
preparations arc necessary for the public
good
The argument that q silver dollar IL
heavier than a gold dollar, and that there
fore silver Is less convenient to carry IN
large quantities. Is completely answered
by the silver certificate which is as easily
carried as the gold certificate or any other
kind OF paper money.
As to the Present Ratio.
There are some who, while admitting
the benefits OF bimetallism. object to coin
| age ut the present ratio II any are leceiv-
cd by this objection, they ought TO remem.
! her that there are no bimetallists who are
earnestly endeavoring to secure 1t at any
other ratio than 16 to l. We are opposed
TO any change in the ratio for two reasons
first. because q change would produce
! great injustice, and, second, because a
! change IN the ratio is not necessary A
change would produce injustice because,
| II effected in the manner usually suggest.
ed, IL would result in an enormous con.
traction in the volume of standard money.
II, for instance, il was decided by inter
national agreement to raise the ratios
throughout the world to 80 20 !, the change
might DO effected in any one of three
/ ways.
The silver dollar could be doubled in
size, so that the new silver dollar would
weigh 32 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 dollar would weigh 32 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 Eew silver
dollar would weigh 80 times as much as
the new gold dollar Those who have nd
vised a change in the ratio have usually
suggested that the silver dollar be doubled
If this change were made, IL would neces
state the recoinage of 4, 900, 0O0, 600 OF sill.
yer into g., 600, 900, 900. There would be
an immediate loss Of s., 900, OOO, 900 either
| 10 individuals or to the government, but
| this would be the least of the injury. A
shrinkage OF one-half in the silver money
! of tho world would mean a shrinkage oil
| one-fourth in the total volume OF metallic
money. This contraction, by increasing
| the value of the dollar, would virtually
! increase the debts of the world billions oil
dollars and decrease still more the value OF
/ the property of tho world as measured by
| dollars Besides this immediate result
such a change In the ratio would perma
ncntly decrease the annual addition to tbs
worlds supply of money, because the an
nual silver product, when coined into dol
lars twice rs large, would make only hal
| rs many dollars.
The people of the United States woulc
| be injured by change in the ratio not
because they produce silver, but because
they own property and owe debts ant
they cannot afford t. thus decrease tn,
value of their property or increase the bur
den OF their debts.
In 1873 Mr.. Carlisle said "Maukinc
will be fortunate indeed IL the annual pro
duction of gold and silver coin shall keeI
plce with the annual increase of popula
ton and industry" / repeat this asser
ton. All of the gold aud silver annually
available for coinage, when converted int
coin Mt the present ratio, will not, in my
Judgment, more than supply our monetar,
needs.
The Sherman Act.
In supporting the act of 1890, known q.
the Sherman act, Senator Sherman, OF
June Of that year, said:
Under the law Of February, 1873, tn,
purchase Of 81, 600, 600 worth OF silver bul
lion n month has by coinage producet
annually an average OF nearly SO, 000, 0Ot
per month for period Of IL years, hut thi.
amount in view of the retirement of th,
bank notes, will not increase our currency
In proportion 20 our increasing popula-
ton
If our present currency is estimated
at 81, 400, 00O, 900 and our population is