The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1896-06-10

TO q TaGlO Ot 10 w WIN CIV - ~ W.
1884, and it failed to add per cent to
gold and make it equal to ratio Of l
to 1G with silver subsequent to 1910.
No limit can be placed upon the
mass Of silver still unlnined. Good au-
thority indicates that the present an
nual volume can be produced for about
60 cents an ounce 1t is impossible to
place and maintain a price upon such a
commodity which would give it profit
entirely disproportioned to that earned
by the average enterprise. Yet the adj
vocates of free coinage of silver now
propose to undertake the experiment at
a local ratio of 16 to |, although the
commercial ratio is 81 to l.
We are therefore confronted with q
proposition to change the meaning OF
the dollar from 23. 20 grains of gold
to 371H grains of silver, AS 37lI
grains Of silver are worth only about IL
grains of gold, it is practically propo-
sition, at a single blow, to reduce the
value Of dollar one-half.
1t is movement more radical than
one to reduce openly the bullion i'll a
gold dollar to 10 grains. This would be
step dangerous, but definite. No one
knows what 81 a grains Of silver would
be worth under free and unlimited coin
age. It is impossible to say whether tho
increased demand for silver would carry
gil Il grains Of silver somewhat above
| 10 grains Of gold, or whether this III
creased demand would shortly produce
a disproportioned increased supply and
carry the value Of 3714 grains Of sill
yer somewhat below 13 grains Of gold.
I am aware that the advocates Of free
coinage of silver object to estimating
the value Of silver in gold, but all in
ternational trade is measured by grains
of gold. No matter what system we
adopt, unless our international COM
merce is abandoned, our dollars will be
actually measured by gold, even though
we fix them upon silver standard.
The movement for the<free and I'M
limited coinage Of silver is therefore
an effort not only to reduce the value OF
dollar about one-half, but to leave 1t
in a state Of uncertainty. 1t threatens
complete change in the meaning Of the
term dollar to some meaning i'll the
neirhborhoCd Of one-half its present
meaning. 1t threatens an entire changs
of the value CT the term by which coll
tracts and credits are estimated and by
which business is conducted.
In every country where progress and
prosperity are found the great bulk OF
business must depend upon credits. The
credits are estimated in dollars, anc
whatever creates doubt as to the mean
ing of dollar must tend to suppress
business. The mere threat involves I'M
certainty, and this uncertainty must bf
removed to bring back to business nor
NAL prosperity.
To appreciate the Importance Of re
moving doubt upon this subject, con
template briefly the process Of reaching
the proposed silver standard. We saw
in 1898 a paralysis Of business, in large
part produced by the threat Of silver
standard.
If president and congress were elect
ed in November committed to the free
and unlimited coinage Of 3714 grains
Of silver into dollars, nearly SIX months
would pass before they could be inaugu
rated and six months moro before the
proposed legislation could become law
During that time creditors would seel
to protect themselves against being palt
in dollars worth only about Is grains @
gold, and they would endeavor to MAKE
collections before the unlimited coinag
Of deprecated dollars began. The debt
ors would not be allowed to remain
debtors until they could get the advan
tsge of paying Off what they owed q
so cents Oh the dollar; they would b
forced to immediate settlements. Shcr
ifs and constables would call rpol
! them without delay. Depos;tors in bank
would withdraw their money. TIL
large merchants, forced to settle thei
foreign Indebtedness, would insist rpol
immediate payment CT debts due from
smaller merchants. The smaller mer
chants in turn would be compelled t
force collections from their customers
The great volume CT business conducte
upon credits would cease.
Manufacturing enterprises could no
{ afford to continue business or max
contracts until the value Of the ney
2 dollar could be settled by the determi
nation Of just what 37l d grains CT sill
yer would prove to be worth. Manufac
tories would close Business house
would fail Banks would be raided
, The unemployed would be numbered b
, millions. The farmers would find fey
purchasers for their products. Want all
famine would pervade the land.
At the end of a few years, when bust
, ness settled down TO the new meanin
a of dollar, fluctuations in the com
mercial price of silver would still kee
, our dollars of uncertain value and hi1
q der domestic trade.
Business interests, reaching from tn
, richest banker to the poorest paid labor
, er, require the removal Of all dout
a about the meaning of dollar. No ma
, should be trusted even with an impol
tant nomination who does not recogniz
, that the value of dollar is now meas
, ured by 1922 grains of gold, and VIII
is not willing to openly declare his pul
pose to help keep it there.
The Cheap Money Will -wis9.