Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-11-26
Thai DREADED INFLUX.
Significance of the Increased Products
of Silver Under Free Coinage.


of Silver Under Free Coinage.
A subscriber propounds the following
inquiry:
Surprising that this country went for free
silver in November, tho mines Of this country
would more than triple their present produc-
ton. Would not this influx of new silver have
some effect upon its market value3
am free silver Democrat, and the above
question is tic only ono that cannot satisfac-
torily answer. Tho bankers and leading Re
publicans around here are winning more votes
by the above argument than any other. II you
will answer it, think you will do tho cause
good.
That question is very easily answered.
In tho first place, there is not shadow
Of foundation for the statement that the
production CT silver would triple under
FREQ coinage. Our present output is,
roughly speaking, 50,OOO,OO0 ounces a
year. If any man knows where lQ0,-
900, 600 Guhees more Can be produced
eacn yea, the country would be delight.
ed to have the bcHAft Of his knowledge.
The statement is absurd. Secondly, such
ali increase of production woL ID be IL
the highest degree beneficial. Sly c'r is
wealth, and the moro wealth the coun-
try can produce the better it will be for
the country. The average goldite speaks
of silver production as though it were
nuisance to be abated, as if in some in.
scrutable way it cast a blight upon the
nation. Thirdly, there will be no
increase unless the value of silver
rises, There would be nothing to slim
ulato the production. So the statement
that the product would increase carries
with it the admission that under free
coinage silver will rise in value. If,
then, we can increase the value per
ounce and at the same time increase the
output two or three fold, in a business
point of view it is sheer idiocy for us
not to do it.
Fourthly, a very large increase of
production would affect the market price
Of silver measured il gold, If the in.
crease were large enough, it would
break the ratio of 10 to /. The effect of
that would be to send gold to premium
over silver, and our metallic money in
circulation would consist exclusively of
the latter. This would cheaper in pro-
portion as its quantity increased That
is to say, prices would become higher
1t would take moro dollars to buy
given quantity Of goods. The effect
would be to stimulate business, for in.
dustrial activity always accompanies
rising prices. Our silver being cheaper
than gold would keep it at home and
use it i'll our own business, - Their than
send it abroad to buy goods I'D suffer a
loss ON the exchange. This is what IN
dia, China, japan and Mexico are now
doing. Thus the premium on gold would
operate as a protective tariff for Amcri.
can industries At the same time, the
United States having stopped using gold
as a currency, that metal would cheaper
abroad, where our surplus products are
sold, and our wheat, cotton, petroleum,
hides and breadstuffs would exchange
for more gold than they do now.
Finally, whether gold went to pre-.
MUM or not, the reconciliation of sill
yer would enable us to compete in the
European market ON more equal terms
with silver using nations In our cur.
rency an ounce Of silver would represent
81. 80, no matter how silver might rate
with gold. If we sold a bushel of wheat
in London for an ounce Of silver in
American money it would be worth
$1.29 instead of 6S cents as it is now.
Under present conditions, when an East
Indian sells bushel of wheat for an
ounce Of silver, it means as many rupees
as it ever did. These rupees will pay as
much taxes aud debt as they ever would
in Hindustan and buy the same neces.
saries of life. In short, the Indian gets
as much money and as good money as
he ever did.
The American, competing with the
Indian, also gets an ounce of silver or
its equivalence. But this equivalent in
our appreciated money is, as before
stated, only So cents. This Scents will
buy for the American farmer as much
of some things as s1.29 would 20 years
ago, but it will not buy as much of all
things Some prices have fallen more
than others Educational charges, doc.
tors bills, lawyers fees and the like
have fallen very little, if any. Debts
remain the same, while taxes have actu.
ally increased. National Bimetallisk
The red mullet is scaled Immediately
before its death to induce permanent
contraction Of ita al1rarhnial nipmank