The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-08
A GERMAN SOCIALIST ON SILVER.

The Socialist party of Germany, or, as
it is sometimes called, the Social Democ-
racy, is what would be called in this coun-
try the Peoples or workingmens party. 1t
is scarcely exaggerating to say that all
the workingmen of Germany who take any
interest or part in politics are Socialists.
One of the leaders of the party is Herr
Max Schippel a member OF the Reichstag,
or German Congress. and an able and pop
ular man. Herr Schippel has written a
pamphlet on the silver question in its rela-
ton to wages, in which he takes strong
ground against return to the bimetallic
standard in Germany. He takes stock
in the Bryan idea that the fall in the price
of silver is due to its demonstration by the
United States Germany any other
country, or to legislation of any kind Be-
ing a logical thinker and knowing some
thing of political economy and the laws of
trade. he attributes the decline in the price
of silver to natural causes. He says the
operation of these causes can be traced
through hundreds Of years in a constant
tendency of silver to decline-a tendency
which has only been arrested at occasional
intervals for short periods. His solution of
the question is the great decrease in the
cost of producing silver. The law of sup
ply and demand and of the cost of produc-
ton as a ruling factor in determining
prices is recognized as controlling. Con-
tinuing, Herr Schippel says:
All the geological experts of the German
silver commission announce a great in
crease in the output of silver. Thus the
cost of producing the silver has decreased
The GanrQniq n silver iG
the necessary result of this decrease in
the cost of production. If free coinage
feet depreciation of the silver currency
a depreciation that would bring the cur
rency down to the level of silver bullion.
This is not the case with the old currency.
The old silver currency actually circulateS
at the former value of the silver. 1t pos
sesses still the former purchasing power
silver thaler was equal to marks in gold.
The thaler has retained this value up to
the present date. We have not permitted
it to go into silver bankruptcy; we have
not permitted it to sink to the value of
IL marks gold Gnstead of 81 Thus its
face value is very different from its metal
value; it represents therefore something
quite different from the 100 of pound
of pure silver which it is composed Of
Thirtythaler pieces are worth much to-
day as they We're in 1870, namely. 90 marks
gold. A pound of pure silver which was
however, now brings only 45 marks tl5
thalers) when sold. What fraud it would
be therefore to try to make 90 marks cur
rency of one pound of silver now. Each
mark, if coined now, would only have a
purchasing value of half a mark. Owing
to it's being maintained in its former value
the thaler now has the same purchasing
power as if 2-90 of a pound of pure silver
were contained in 1T, as If it weighed twice
the amount it weighs actually. What a
fraud it would be to reduce, by free coin
age, its purchasing power to 1-30 of a
pound. Under ire, free coinage the currency at
metal value of the uncoined bars; the lat
ter would flow in endless masses into the
minis (to obtain there through coinage a
higher face valued until the currency would
be at level with the bullion.
To-day, being within the boundaries of
the gold standard. the thaler is worth
twice its metal value. Tomorrow, under
free coinage, it would be worth half the
amount: OF course It is an easy thing to
if it possesses only half the value in gold
The government might also withdraw all
ten-mark pieces and Issue them anew
having them stamped twenty marks. What
would be the consequence? All prices
would rise from ten to twenty marks The
capitalist, the tradesfnan. expect to be paid
in values, actual values, not in names. Just
as in the United States he asked for two
equal to only a half dollar in metal This
artificial increase of the cost of living
would mean the most outrageous robbery
of the working classes. The bimetallists
endeavor to bring about an increase of
price of all merchandise and for all time
especially that of the food of the masses
as the farmer insists that he cannot live
unless he bleeds the poor devil of a work
ingman by increasing the price of food
products.
Substitute dollar for thaler. and this ar
gument fits the situation in this country
exactly. AT present being within the boun-
laries of the gold standard, the dollar
Uhaier) is worth twice its metal value.
Tomorrow. under free coinage, it would
be worth half the amount" Herr Schippei
suggests that IL cheap money" Is wanted.
Why not withdraw the ten-mark pieces and
issue them anew. stamped twenty. marks