The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-07-23
VALUE OF THE srLvER DOLLAR.

4
purchase just as much, and is as readily
accepted in payment for purchases, or 10
settlement of debts, as gold or its equiva-
lent. We can pay debt of $40 just as
readily with silver certificates or ten silver
dollars as we can with gold eagle; we
can buy no more with q gold eagle than
with silver certificate for ten dollars;
no merchant will sell his goods cheaper
for gold than silver, yet we are told the
silver dollar is worth but fifty cents,
Silver coined as money fills all the funo-
tions Of money just as we'll as gold, and
1t is as readily accepted, the silver dollar
as money being worth just as much as
gold.
1t Is true the amount of bullion con-
tained In the silver dollar Is worth,at this
time but SO ceIts, that 371L grains Of
unooined silver are worth but SO cents in
gold Jut the same amount Of silver in the
shape Of coin Is worth 100 cents In gold,
and is, in fact, dollar in every way the
equal of gold But what does this proveS
Why is 1t that we find 371k grains Of
silver worth AZ cents more in the shape Of
coin than in the shape OF bullion9 1t is
not, as often stated, because the silver
dollar is redeemable in gold for 1t is not
by law redeemable in anything; 1t rests
| 81 10 L.
has been redeemed in gold or ,lanythipg
else, but simply because there Is greater
demand for silver that has been coined
than for silver as bullion. Silver as coin
Is subjected to the monetary demand,
while silver as bullion is not 1t is this
and nothing else that makes 371 "a grains
of silver coined into dollar worth AZ
cents more than 97lA grains of silver
bullion
The relative values of the silver dollar
and of silver bullion are fixed by the law
of supply and demand. The mints being
closed to the free coinage of silver in the
principal countries Of the western world,
the demand for silver as bullion is re.
stricted to the demands Of jewellers and
others for use in the arts, the demands for
silver for export to the Orient, and the
spasmodic demands Of the mints of the
western world for silver for manufactur-
ing into token coinage. For silver bullion
this makes the demand. The supply con.
sists Of the total product of the mines and
Of such old and worn-out silverware as is
melted down from time to time.
But the relative supply and demand
for silver coined into dollars is very differ
ent. Silver dollars being the equal of gold
as money and fulfilling all the money
functions just as we'll as gold, they share
with gold and other representative mon
eys based on gold, the monetary demand.
And, on the other hand, tho supply of
silver dollars is rigidly restricted and lin
tied to the number already coined |
Thus, while the demand for silver as
dollars is greater than the demand for |
silver as bullion, the supply is smaller.
Naturally, therefore, the value of silver
coined into dollars is greater than the |
value of silver bullion and must so re-
main so long as the mints are closed to
silver, and the monetary demand is cut
off from silver bullion and while the sup
ply Of silver is arbitrarily limited.
Thus it is the monetary demand gives
a greater value to silver dollars Ethan to
the same weight of silver bullion, and |
1t is the IL Ionetary demand that acting
automatically, gives to the silver dollar
always the same value, no more, no less
as the gold dollar, and makes one at all |
times the equal of the other Any ten
dency of the two dollars to fall apart is at
once checked by the monetary demand for |
the dollar that tends to appreciate as
measured by the other decreasing while |
the demand for the other increases. Thus /
the cheapest tends to rise with the In
creasing demand and the dearest to fall |
with the decreasing demand. For example,
should our silver dollar fall in price as
measured by gold or greenbacks so that
the silver dollar could be bought for 90
cents in GOLD or its equivalent what would
be the result? Silver being equal to gold
as money and going just as far as gold,
all those having payments to make, and
having gold or greenbacks in their pos
session, would hasten to exchange their
gold and greenbacks for silver dollars, for
as 800 In gold or greenbacks would go
no farther in making payments than 100
silver dollars, which they could buy with
800 in gold or greenbacks, it would be
TO their interest to make the exchange, for
by so doing they would save 81 on every
300 rendered In payment for purchases.
the demand for silver dol.
ars would increase while the demand
Tor gold decreased, with the result that
the parity would be restored.
1t is this law, working smoothly and
from day to day that keeps
'ur SO, 000,000 of silver dollars in cifcula-
ion the equal Of sold, that keeps the
gold and silver coin of France her
$3.50, 900, 900 of gold and $3.50, 900, 900 of
ull legal tender silver, at parity, that
maintained the parity of the two metals
when her mints were open to silver, and
hat would restore and maintain the
,arity Of gold and silver on opening our