Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1896-10-01

Sooo VSVu,OO WI ~ kolo An t0S
banks of this country; the Of
fetal reports of the treasury
department place the amount at
t127, 629. 099 in the banks. On the
theory Of over production in this
country under any circumstances and
in contradiction OF such q condition
he stated that We had had experience
and actual data upon this subject.
According to the tables issued BY the
treasury department Aug. Is. 1898,
showing the total production Of gold
and silver in the world at coinage
value, 1t appears that from the year
1892. when our monetary system was
founded. to the year %, the time
of the great gold discoveries, being .
period of 60 years. the total produc-
ton Of silver in the world. rating it
at coinage value. was 81. 769. 197. 900.
and the total production Of gold in
the world during that time was
1860. 2S3. 900; that ia. on the average
there was about twice as much silver
produced as gold during that time.
The production Of each metal varied,
Of course, during the different years,
and vet the market remained practi-
cally the same during all that time.
The tables giving the market prices
show that during those 60 years
there was . variance OF only seven
tenths Of q point. or just about the
cost OF exchange. The same table
shows that from 1852 to 1873 the
total gold production of the world was
q, 516. SIS, 200. while the total silver
production was only 1888. 225, 900;
this is. there was two-and-a-half
times Is much gold produced as sill
YER. yet the market ratio remained
unchanged during these 2l years
just rs It had during the period of
60 years when there was twice As
much silver rs gold produced.
Again. the same tables show that
from 1873 to 1892. inclusive, the TO-
tai gold production Of the world was
$2.176 sos. 200. while the total silver
production was $2.347. OS7 900. that
is. the production of gold was nearly
equal to that of silver. During the
first two periods silver WAS q money
metal. During the last period it
was not. Inasmuch as silver did
not fall in value, as measured in
gold, it is clear that had silver not
been demonetized it would not have
fallen when the gold production was
nearly equal that Of silver after 1873.
He dwelt at length on the disas-
trous effect Of demonstration on
agriculture, on wages and the gen.
eral condition Of the people and the
effect Of money circulation on the
law OF supply and demand. When
there Is large amount Of money in
circulation prices are high. when
money is exceedingly scarce anon z
the people prices are low. The vol
ume of money forms the line for
prices. II you wipe out half the
worlds money prices fall correspond
ingly; IL you double the volume
prices will on the average double.
1t is under this same law Of supply
. nd demand that the demonstration
OF silver has affected general prices
throughour the world. So it is, too,
that even as two men require more
money than one, and o thousand
more than fifty do. as the population
Increases there must be q correspond
ing increase in the volume Of money,
or there will be practical shrink
age and less money per capita. He
made patriotic and conviciug argu.
ment for free coinage, holding that
the increased volume would get into
circulation just as that which we
now have has, and that money
will cease to appreciate, but will 90
to building houses. shops, railroads,
starting factories and doing business
generally. In answer to the charge
Of national dishonor and Reputation
under free coinage. the governor con.
tended that inasmuch as we got pa
per money for which those
bonds were sold. and gold and silver
for the remainder, the debt having
been created long before 1890. when
congress declared practically that it
was the policy OF the government to
keep everything on gold basis-aud
there was no dishonor or reputation
In liquidating obligations in the
specie in which they were con-
tracted.
To Restore Prosperity.
The governor insisted that the res
toration of silver would tend To again
raise prices and restore the purcha,.
ing power OF the farming and pro-
ducing classes. and with the restora-
ton OF that purchasing power, when
the farmer can again spend money at
the store. can again spend money at
the shop. spend money at the college
spend money in travel, there will
come universal activity. The manu-.
facturer will again find q market for
what he makes, and labor will be EN-.
Ployed and the tendency will be to
revive universal activity and pros
perity.