Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1896-10-29

two metals was ~thirty-two ounces of silver to one ounce
OF gold. From 1850 to 1873 this condition was more
than reversed. During the period-1S50 to 1S73-follow-
ing the discoveries of gold in California and Australia,
there was So of gold produced in the world TO 81 Of sill
yer. And yet, notwithstanding these violent fluctuations
in the worlds production of the two metals, 1t did not
seem to have any perceptible effect on the commercial
value OF the two metals at their relative weights, as coin
ed into money. The option of the debtor controlled the
demand. and thus regulated their commercial value. The
option of the debtor automatically shifted the demand
and regulated their values. 1t acted automatically like
the regulator on a steam engine. This, with the mints
open to coin all that would come, was scientific bimetal-
ism.
LAWS OF 1873.
In 1873 the law was changed and gold only was made
primary money. The minis were left open to the free
coinage of gold, but closed as to the free coinage OF silver.
An unlimited demand for gold for use as money was
left in operation. The unlimited coinage of silver was
stopped. One OF the main arteries feeding blood to civ.
ilization was cut Off. The debtor was TO have no option
to pay in money made from either of these two metals.
He was to be limited to gold alone.
WORLDS Production SINCE 1879.
From 1878 10 the present time, the worlds production
of the two metals has been about equal, 81 OF gold to 81
of snver-1G ounces of silver to one ounce of gold. From
1878 to 1885, there was produced in the worll eighty
cents in silver to 81 in gold. At no period OF twenty
three years, prior to 1873. was the worlds production
of gold and silver anywhere near equal, dollar for dollar,
as it has been since 1873. And yet, notwithstanding the
world s equal DrCCUcIlOH uOIHf % uOlElr, OF IN two
metals since 1873, they have separated in commercial
parity so per cent.
While prior to 1873, the huctuation In the worlds pro-
duction of the two metals was violent, and had no effect
beyond three per cent in their commercial parity. from
the legal ratio; since 1873, with no huctuation, practi-
cally, in the worlds production of the two metals. they
have separated 30 per cent.
THE MEAT OF THE QUESTION.
now approach the question that has been the least IN
derstood. 1t is the idea that the dollar is a fxity. That
vhpot fall Int that the dollar never rises or falls
Our people understand that supply and demand affects
the value Of wheat, but they do not seem to have under
stood the effect of this law on money. There was a time
in the world when 1t was believed that the earth stood
still and the sun went round us every twenty-four hours.
And, it seems to us, who live to-day, that this is the ease.
But we have learned that such is not the case. 1t is to
world that moves, though seemingly not to do so. Ne
are now to learn that the dollar may rise and fail IN
value.
Let me illustrate this. so there cnn be no misconceptIon.
Suppose the law was TO declare wheat our primary
money, and n bushel of wheat the unit or dollar. When
we would refer TO a dollar, we would mean a busbel OF
wheat or it's equivalent, as we now mean 300 grains of
gold, or its equivalent. If wheat became less, or the
demand for it grew for its use as money, it would buy
more in exchange for other property. If, under such n
you went into the market to purchase a horse and
agreed. with the seller, on $50, as the price of the horse,
you would have reference to the exchangeable value OF
the horse and bushels of w~heat-wheat dollars. II the
law were suddenly changed, and tons OF wheat were
made dollars, and you went into tine market to buy the
hkC ANiNa IL H'N'
in the new wheat dollars-ton dollars. In each instance.
the price of the horse was regulated by its cNchangcnbIe
value with the substance out Of which the primary dol |
lar was constru ted. |
Under such a system, with wheat as primary money,
all other forms Of money would be redeemable in wheat,
and, therefore, would be called the equivalent Of wheat. |
Under our present system of money, 49, grains OF pure
or 25.S grains OF standard gold pure gold and alloy
the dollar. So. when you now 20 into the mar
ket to buy n horse or other property. any price agreed
upon has reference to the exchangeable value Of the
property and gold-with n globula OF standard gold
weighing 25.S grains as the dollar, in which you will ex-
press the value of the horse or other property. And all
our other forms OF money are redeemable in these gold
dollars.
l am proceeding thus far on conceded facts; and that
there may be no misunderstanding as to the exemption
OF all our forms OF money, in gold, | quote from Sen
ator Foraker in his Columbus. o., speech, Aug. -,
wherein ne says: silver is made as good as gold by rea-
son OF the fact that our silver coins are redeemable IN
gold" Since the commercial value Of gold has been
60 enhanced as the result Of the act Of 1873, any at
tempt to make each dollar as good as every other dollar
requires redemption In gold.
With each money, whether paper or silver, redeemable
In gold, they are the representatives OF gold. Hence, an
exchange Of dollars for a horse or other property means
the relative eIchangeabls value Of gold for the property.