Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1896-09-12

Sltl0n that a silver dollar is not as goot
as a gold dollar for the reason that thu
silver metal used in coming a silver dol
lar is worth in the open market only a
bout sixty five cents. while the golt
metal used in coming a gold dollar il
worth a dollar in money. How people
who make ~pretensious as ''fnanciers
and statesmen can afford to advance
such propositions can only he explained
on II Of two theories. One is that they
have lie conception of the subject, and
consequently no right to an affirmative
opinion concerning it and the other is
that they impute such ignorance to the
rest Of mankind as to suppose that they
can easily be imposed upon, They eth
er do not understand what they are talk
ing about, or wilfully undertake to mis-
lead others. The gold and silver built
on depends for its value in the open mar
ket upon the same laws of trade that all
other products do. The same law fixes
the price of gold and silver metal that
fixes the price of corn, wheat, cotton
and labor; and the principal factor in
fixing such price is that of supply and
demand. When any article is scarce
and the desire or demand for it is great,
the article becomes more valuable and
rises in price. The other day Gen. Wey-
Ter stopped the expectation of bananas
from Cuba. New York and Philadel-
phia and most of the eastern trade had
been getting their chief supplies from
that source almost the immediate effect
of the order cutting off that supply was
to double the price of bananas in those
markets. The prices of all products are
affected by the same processes. The
prices rise and fall in exact ratio with
the increase and decrease in supply and
demand. No thinking man can dispute
this proposition, There Is another prop
osition that is self evident, to-wit; if
the supply of any article is limited and
the demand unlimited, then the price of
such article can be absolutely fixed by
those who are willing and able to give
the most for it. Another thing is true
also, and must be kept in mind; and that
is that although a product may be a
thing of universal desire, yet the inten-
sity of that desire will depend largely
upon the uses to which such product can
be put in administering to the well being
of those who want it, and people will be
willing to exchange more or less value
for it, according as it may be more or
less useful to them. From this propo-
sition results a second one of equal i'm
p%ortance and that is, when anything
becomes of more value to one. by rea-
son of the different uses he can make of
it, than it is to another, he will be will
ing to give more for it and his price
will fix the market value of the thing.
Those who are able and willing to pay
the highest price for a thing fix the price.
Suppose l was able and willing to pay
twenty-five cents per pound for cotton,
and take all that could be produced
would not everybody sell their cotton to
me? And would anybody take less for
their cotton than what they could get
for it from me ? Certainly not l would
then fix the price the world over. Cot
ton would be worth twenty five cents
per pound all over the world, less the
freight and other expenses of getting it
to me. Every one can readily see that.
Now apply these propositions to gold
and silver metal. We know that the
supply of both is very limited. Now,
England and the United States, and va
rious other governments, are able and
willing to take all the gold bullion pro
duced in the world. The price offered
for it is greater than any other persons
are willing to pay for tit is above its
normal value. The Bank of England is
compelled by the British government
being controlled by that government
to pay three pounds, seventeen shillings
and nine pence for every ounce of gold
bullion brought to it; the United States
pays about the same ratio. ANY one
who has ii can take it to either of those
governments and get that price for it.
That price, therefore, absolutely fixes
the price of gold bullion the world over,
and 1t cannot vary, except as affected
by freights and insurance in getting it
to these Governments. 1t csr1ub6 90
alshor, because m 5iio a afford to pay
ihoss f0rlr IL caaaot 20 lower, because
- xsa viii part with it for less than the
highest price he can obtain. The sup
ply being limited and the demand un
limited, and the price fixed above the
reach of competition, it cannot vary in
price so long as these conditions exist.
That is precisely the way in which the
price OF gold is regulated and kept from
varying. That is the only way by which
the price of anything can be regulated
and kept from varying. Now, the case
is different with silver. Although the
supply, like that of gold, is very limi-
ted, the demand is limited also. Meth
er the United States nor England, nor
any other great nation, will agree to
take all the silver that is produced at a
fixed price. In fact, they will not take
any of it at a fixed price. When they
want any of it they go into the open
mar'Set and buy il at what they can get
''"v would any other
take care OF itself on its own merits as a
useful product, like corn and wheat and
cotton. Necessarily therefore its price
varies from time to time like other bro
ducts. It's market value is less than
that Of gold simply and solely because
the demand for it is less than that for
gold. If silver bullion were surround.
ed with the same conditions as those Ok.
listing as to gold the same result would