The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1896-08-15
The Necessity for Bimetanism.

The Necessity for Bimetallism.
There is an actual necessity for bimetallism.
as well as a theoretical defense Of it During
the last 25 years legislation has been creating
an additional demand for gold, and this law
created demand has resulted in increasing the
purchasing power OF each ounce of gold. The
restoration of bimetallism in the United
States will take away from gold so
much OF its purchasing power as was
added to 1t by the decentralization OF silver by
the United States. The silver dollar is now
held up to the gold dollar by legal tender laws.
and not by redemption in gold, because the
silver dollars are not now redeem
able in gold, either by law or administrative
power.
We contend that free and unlimited coinage
by the United States alone will raise the bull
lion value OF silver to its coinage value and
thus make silver bullion worth Sl29 per ounce
in gold throughout the world. This PROPOSE
tion is in keeping with natural laws. not in de-
fiance of them. The best known law of COM
merce Is the law of supply and demand. We
this law and build our argument
upon it. We apply this law to money when we
say a reduction in the volume OF money Will
raise the purchasing power of the dollar: we
also apply the law of supply and demand to
silver when we say that n new demand for sill
yer created by law will raise the price OF silver
The question upon which international BIZ
metallists and independent bimetallists differ
is: Can the United States, by the free and
coinage of silver at the present legal
ratio, create a demand for silver which. taken
in connection with the demand already in eX-
istence. will be sufficient to utilize all the sill
yer that will be presented ut the mints? They
lgree in their defense Of the bimetallic princi-
pies and they agree in unalterable opposition
to the gold standard.
international bimetallists cannot complain
free coinage gives a benefit to the mine
owner, because international bimetallism
gives to the owner OF silver all the advantages
offered by independent bimetallism at the
ratio. International bimetallists cannot accuse
the advocates OF free silver OF being bullion
owners who de sire to raise the value OF their
or debtors who desire to pay their
1ebts in cheap dollars" or 'demagogues who
desire TO curry favors with the people, They
must rest their opposition upon one ground
only, namely, that the supply OF silver availa-
BILE for coinage is too large to be utilized by
The United States
The Silver Supply.
In discussing this question. we must consid-
er the capacity of our people to use silver and
the quantity of silver which can come to our
hints. 1t must be remembered that we live in
4 country only partially developed, and that
our people far surpass any equal number OF
people in the world in their power to consume
md produce. Our extensive railroad develop
nent and enormous internal commerce must
also be taken into consideration Now, how
much silver can come here? Not the coined
silver of the world. because almost all of It
s more valuable at this time in other lands
han 1t would be ut our mines under
rec coinage. II our minis are opened to free
md unlimited coinage at the present ratio,
silver cannot come here because
he labor applied to 1t has made 1t worth more
n the form OF merchandise than it will be
worth at our minis. We cannot even expect
vi of the annual product of silver, because In
liza. China, Japan and Mexico and all the other
countries must satisfy their an
iual needs from the annual products; the arts
will require o large amount, and the gold
standard countries will need a considerable
,uaptity for subsidiary coinage. We will be
,equired to coin only that which is not needed
but IL we stand ready to take and
Utilize all of 1t, other nations will be compelled
% buy at the price which we fix.
Many fear that the opening OF our mints will
De followed by an enormous increase in the an
lual production of silver. This is conjecture.
Silver has been used as money for thousands OF
Iears, and during all of that time the world
or any reason. the supply of gold or silver in
he future ever exceeds the requirements OF
he arts and the needs Of we con-
identity hope that the intelligence OF the peo-
Die will be sufficient to devise and enact any
egislation necessary for the protection of the
1t is folly to refuse to the people the
money which they now need for fear they may
hereafter have more than they need.
I am firmly convinced that by opening our
hints to free and unlimited coinage at the
TdJtO We Cdu CTtdIt II utHldnu U SllNCT
which will keep the price of silver bullion at
sl.29 per ounce, measured by gold.
The Fall of Silver.
Some of our opponents attributed the fall in
he value of silver, when measured by gold, to
he fact that during the last quarter of a CEN
Jury the worlds supply of silver has increased
more rapidly than the worlds supply of gold
argumen is entirely answered by the
that during the last five years the annual
production OF gold has increased more rapidly
han the annual production of silver.
Since the gold price of silver has fallen more
Turing the last five years than it ever fell in
my previous five years in the history OF the
world, it is evident that the fall is not due to
production. Prices can be lowered
Is effectually by decreasing the demand for an
article as by increasing the supply OF it, and it
seems certain that the fall in the gold price OF
md not to natural laws. Our opponents
cannot ignore the fact that gold is
low going abroad in spite of all
legislation to prevent it, and no silver is being
,oined to take its place. Not only is gold 60
ng abroad now, but 1t must continue to go
abroad as long as the present financial policy
S adhered to, unless we continue to borrow
rom across the ocean. and even then we sim
ply postpone the evil. because the amount bor-
owed, together with interest upon it. must be
in approaching dealings
The American people now owe a large sum
TO European creditors, AMI falling prices have
eft u larger and larger margin between our
national income and our national interest
,harge. There is only one way to stop the in
,reasing flow of gold from our shores, and that
$ TO stop the falling prices. The restoration
IF bimetallism will not only stop falling prices,
1ut will, to some extent, restore prices by re-
lucing the worlds demand for gold
II it is argued that n rise in
prices lessons the value of the dollars
which we pay to our creditors, 1 reply that, in
he balancing of equities, the American people
lave as much right to favor a financial system
which will maintain or restore prices as for
,ign creditors have to insist upon u financial
,ystem that will reduce prices. But the in
.erests of society are far superior to the in
terests of either debtors or creditors. and the
interests of society demand IA financial system
which will add to the volume OF the standard
money OF the world, and thus restore stability
% prices
The Charge of Republication
Perhaps the most persistent misrepresenta-
that we have to answer is the charge that
We are advocating the payment Of debts in So
cent dollars. AT the present time and under
present laws, n silver dollar, when melted,
oses nearly half its value, but that will not be
rue when we again establish a mint price for
silver and leave no surplus silver upon the
market to drag down the price of bullion. I'm
Ter bimetallism silver bullion will be worth as
much silver coin just as gold bullion is worth
Is much gold coin. and we believe that n silver
oah1A hAAA ~ "OA U.s. AAhSh US - bCAd oAA1A
Il he charge of reputation comes with poor
grace from those who are seeking to add to the
OF existing de BITS by legislation which
makes money dearer, and who conceal their
designs against the general welfare under the
,uphonious pretenSe that they are upholding
credit and national honor.
In answer to the charge that gold will go
broad, it must be remembered that no gold
leave this country until the owner of the
,old receives something in return for it which
le would rather have. In other words, when
,old leaves the country those who formerly
,wned il will be benefited
There is no process by which we can be COM
,elled to part with our gold against our will,
Tor is there any process by which silver can
,e forced upon us without our consent Ex-
hangeS are matters of agreement. and il sill
-er comes to this country under free coinage,
I will b. ut the invitation Of some one in this
,cuntry who will give sor.ething in exchange
or it.