Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1896-11-28
PRICE OF SILVER.
REASONS WHY IT WOULD NOT RISE
TO S1.2e AN OUNCE IN GOLD.


snyer would Not Go Up. the Panic
Would BE Unparalleled.
Mr.. Bryan says he does not believe
the silver dollar would depreciate to 81
cents or at all, but would continue to
be worth 100 cents in gold, as now. Is
this view sound2
If the silver dollar under free coinage
is to remain worth 100 cents in gold,
it is apparent that silver bullion must
become worth $1.29 an ounce, for if
worth less bullion holders would coin it
for the profit, and this process would
continue until no profit remained-that
is, until the value Of the silver dollar
was just the same as the value of the
bullion in it.
To do this it is necessary to raise the
value of the worlds stock Of silver,
which exceeds 81, 900, 000, 900, from SO
cents, its present price, to $l.29 an
ounce.
Mr.. Bryan admits this. In his speech
of acceptance he said, "We contend
that free and unlimited coinage by the
United States alone will raise the bullion
value of silver to its coinage value, and
thus make silver bullion worth $1.29
per ounce III gold throughout the
world.
The question, therefore, is, would the
demand in the United States for silver
dollars over and above the present stock
Of 437, 900, 900 of them be sufficient to
double the value of the worlds stock of
silver?
Mr.. Bryan says it will, but admits he
can't prove it, adding, Neither can you
prove that it won't !" In Brooklyn, on
Sept "a, he said: "You cannot prove
by mathematics that we can maintain
parity. Neither can you prove that we
cannot.
The United States has had some ex-
perience in trying to raise the price of
the worlds stock of coin above its mar
ket value.
In 1860 the bullion in silver dollar
was worth $1.03 i'll gold and the gold
dollar, measured by silver, was depre-
ciated per cent Our minis were open
to the free coinage of gold as well as
of silver. Did that raise the price Of
gold to par with silver? Not at all. Al
though the worlds stock of gold is
much smaller than its stock of silver,
and although it was only necessary to
raise it 8 per cent, we could not accom-
plish it.
This lasted from 1884 to 1860 and
down to 1878. The price of gold bullion
was not raised, and, being the cheaper
currency, it drove the silver out of cir
culation. As no silver had been in cir
culation for over 35 years, in 1878, aft
er full debate, this coin was omitted
from our coinage list.
In 1899, under the ratio of Is to in
force at that time, the bullion in gold
dollar was worth cents more than the
silver dollar, and the silver dollar,
measured by gold, was deprecated 3 per
cent. Silver, being the cheaper metal,
drove gold entirely out of circulation
for more than 40 years.. O.. until
1834-when the government changed
the ratio from 10 to / to 16 to 1, with
the effect seen above.
In 1860 we were a nation of over 80, :
600, 900 of people and had no silver on
hand. Now we are a nation of about
10000, 900 of people, but have 437, 900, :
900 of silver dollars on hand.
If, with all our power, in 1860 we
were unable to raise the bullion value
of gold but 3 per cent, how can we ex-
pect to raise the bullion value of q lar
ger quantity of silver not merely 3 per
cent, but fully 80 times 81. O., SO per
cent?
If, in 1860, with over 10000, 900 of
people, we had been able to raise the
bullion value of gold just per cent to
par, then, being ga times as great a
people now as we were then, we might
expect to raise the bullion price of silver
21s times as high-that is, 7 per cent
but how could we expect to raise its
price, not per cent alone, but more
than thirteen times z per cent. O., 96
per cent-especially when the only pow
er we have to raise it with is our de-
mand for silver dollars, and that de-
mand is already supplied to the extent
of $437 900, 600?
Yet, unless we succeed in thus nearly
doubling the price of the entire world s
stock of silver, the price of bullion must
inevitably pull the value of the silver
uOMu, hS DuillOu NOlli OO SOlLOAt
as long as there was profit. e., till
the values met.
Mr. Bryan has presented his beliefs on
this subject. Opposed to them stand
facts and history, and not merely his
tory of this country alone, but of all
countries.
But it is to he noted that even if the
silver dollar did not depreciate we
would not escape a panic, as foreign
and domestic creditors believe it would
depreciate, and would consequently call
in debts and force sales just the same.
Mr.. Bryan fully admits that panic
must result even if the silver dollar
does not depreciate. In the Chicago con-
vention he said, "When you come be-
fore us and tell us that we shall disturb
your business interests, we reply that you
have disturbed our business interests. {"
And the st. Louis Globe-D Democrat re-
oor.tad his. saving. ET think IL (mpaninO