The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-10-20
SHRINKACE And PANIC.
The True Result of Unlimited
Free Coinage of Silver.
THE GOLD WOULD DISAPPEAR.

nee In Nutshell the Dangers OF the
Free Silver Proposition-General Bank
ruptcy Would Ensus and Labor for Years
Would BE = Drug In nm Overlooked
Msrket-Mine-Owners aud Spectators
Alone Would Profit
Let US suppose. says a well-known
Boston writer on economic subjects.
that the congress which convenes in
December. 1897. together with the new
ly-elected president, should favor free
silver" They assemble and pass an
act for unlimited coinage, at the ratio
OF Is TO !. to take effect say Jan. i,
1898. This is just what the advocates
OF unlimited silver mistakenly think
would inaugurate general prosperity.
Let US see what would be the real re-
suit.
The moment that such an enactment
became even probable. there would be
such deluge Of American securities and
stocks. corporate. municipal. state and
national. returned from the Old World.
that prices would rapidly approximate
toward one-half Of present values. Be-
sides. all stocks and bonds that are
more exclusively held in this country.
would sympathetically decline with
them In about the same proportion.
The s650.000.00 900 OF gold coin (more or
less) now in the country. would at once
lose its function as money, and COM
mand a high premium. II would rapid
ly leave the country. and. for the time
being, there would be a contraction OF
the monetary medium to that amount.
No matter how much subsequent infia-
ton might come after few years OF
H.
would be a general collapse and uni
versal paralysis. The panic OF 1893 was
puny and infantile when compared
with the one that would come in 1898.
There would be an immediate and
tremendous shrinkage of all values.
and OF labor the most of all. Few who
were In debt could pay. but when
things really got to the worst, the OPP
portunity for the wealthy TO purchase
at great bargains would be immense.
Thus the already rich would become
vastly richer. and the present inequali-
ty be greatly increased. There would
be general bankruptcy. and for a few
years labor would be a drug. Severe
as was the panic of 1893. IL was COM
paratively but a mere step land then
arrested) in the direction indicated. Aft
would slowly emerge from the wreck
and chaos.
But in the meantime. another current
would have started. The silver OF the
world would be dumped upon the Unit
ed States. and with greatly increased
mint service. in perhaps three or -four
years, an imitation would begin to make
itself felt. But. even then. the increase
In lttac no u,,A
nominal. for the basis would be sill
yer. Foreign exchange would approxi-
mate towards 100 per cent premium
and all the rise I'm prices would be
only apparent and deceptive.
The final effect of this imitation would
be still again to make the rich. richer,
modities would nominally rise. but
what of the man who had no commod-
tiles? The property Of the millionaire
would be doubled (nominally) and the
man who before had nothing. would
have twice nothing
Wages, after three or four years
would apparently rise. like everything
else. but they are always the last Of
the procession. Long before that time.
every commodity that the laboring man
needs would have doubled. and. there
fore, he would be. not only relatively.
but positively. worse off than before.
Both by the panic and by the subse-
quent imitation. therefore, the present
inequality would be terribly intensi-
fled. The INSCRIPTIONS financier. the
wrecker. and the shrewd operator.
would fattcn, for they always can take
advantage OF violent fluctuations
whether upward or downward.
All wage learners, people on salaries,
and every producer. as well as all legi-
innate business would suffer. both dur
ing the great depression and the final
imitation. Unsettled conditions. OF
whatever nature. always lodge more Of
the fixed wealth OF the country In the
hands Of those who already have the
advantage.
We already have a practical bimet-
allism. IL that be construed as meaning
the two metals In liberal supply. This
Is only possible. when the dearer metal
Is made the standard. and then q GER
tain amount OF the inferior metal can
be noated at a parity.
The fall In the price OF farm products
has not been caused by any lack OF sill.
yer, but by improved machinery and
the competition OF cheap-labor coun-
tries. like Russia. India, Australia and
the Argentine Republic. But even this
decline benefits consumers. and such
comprise the great majority.
But. not withstanding the general de-
cline in other values. wages have ad-
vanced. Do wage-workers want their
wages cut In two through the influence
of unsound money? No. the best Is
none too good. The only gamers would
be the owners OF bonanza mines. who
are mostly millionaires. while every
body else would suffer.
Sound money creates confidence. and
that Is the foundation of business.
Distrust and threatened anarchy kill
all demand for labor. and always
bring hard times" Degraded money
would be suicidal TO all labor. industry
and business.