The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1896-04-24
REDUCTIO AID ABSURDUM.

REDUCTIO AID ABSURDUM.
How Can a Dollar he Worth Fifty and One
Hundred and Fifty Cents at the same
Time:
1t is with much apparent self-satis-
faction and with an air of conclusive
ness that gold writer's and speakers
have again and again propounded the
question:: Wont the free coinage of
silver drive gold out of the country
and give US a 50-cent dollar?" as one
unanswerable, except in the affirma-
tive. We have before referred to the
absurdity of this contention of the
gold monometallists and shown that
the question answers itself and mega
lively, but the constant assertion by
gold monometallists on the floors of
congress during the recent debates
that free coinage of silver would
drive out gold and give us a 5O-cent
dollar" obliges US to refer to it again,
and again refute this assertion, that,
short as it is, involves in itself con-
tradiction.
1t is asserted that the first effect of
opening our minis to silver would be
to drive our gold out of circulation and
force its expectation. On this all gold
monometallists agree, and they cite
the much abused GRESHAM law" in
support of their contention. The
treasury statements give the circula-
ton in the country roundly at $780,
100000, divided roughly into one-third
gold, one-third silver and one-third un-
secured paper, viz, paper not based on
specific deposits of gold or silver. The
estimate of gold is much too large, and
SO are the government estimates of
greenbacks making up in part the cir
culation of unsecured paper. But into
these points it is unnecessary to enter
at this time.
The gold monometallists believe, or
affect to believe, that the result, the
Immediate result, of opening our minis
to silver, would be to drive the gold
out of the country. At once, they tell
us, as a result of opening our minis to
silver, we would lose the hundred or
SO millions of gold in the treasury, in
exchange for green backs, etc, and
this, together with the four or five
hundred millions in the banks, and es-
timated to be in the hands of the peo-
pie, would be lost to circulation. At
one stroke our currency would be con-
tracted one-third, the basis for credits
restricted, and credits curtailed pro-
portionately. Consequently there
would be direful contraction and ca
lamitous fall in prices.
Such is the picture the gold mono
metallists draw with which to threaten
us And this direful contraction
through the loss of our gold which
they affect to fear, this scarcity of
money is to give US 5O-cent dollar!
Scarcity of money is to give US cheap
dollar! Our money, they tell US, would
be contracted one-third the moment
we opened our minis to silver and
prices would fall equally or 33H per
cent The purchasing power of the
paper dollar, of the despised silver dol
lar, would be increased so per cent. by
the free coinage of silver, yet it would
give us 5O-cent dollar, a cheap dollar!
Instead of giving US a 5O-cent dollar,
such contraction would give US a $50
cent dollar.
But free coinage would not drive out
gold so as to cause a contraction of our
currency and fall in prices. There
would be no more l5O-cent dollar as
a result of opening our minis to silver
than there would be 5O-ceut dollar.
Grant that on opening our minis, panic
would seize foreign investors and they
would throw securities on our markets
and take gold in payment Theresult-
ing export of gold would be but mo-
mentary. Any such contraction as
the gold mouometallists affect to be-
lieve would result, leading of necessity
to lower prices. would at once check
imports and stimulate exports. For
eiguers would not care to consign
goods to America on a falling market,
but they would eagerly buy our COM
modities and, as a result, they would
have to send back our gold in pay
meut Consequently such contraction
as the gold monometallists affect to
fear would be impossible.
Gold could not be driven out faster
than silver was coined to take its
place. The nations of Europe could
not take our gold and keep it, unless
they could send US silver in exchange.
And they have little silver that they
could send US What silver they have
as bullion they might send to our
minis for coinage, but silver in use as
utensils, as ornaments, as plate, and
on which much labor has been ex-
pended. they could not afford to send
us Nor would they send their silver
money coined at. higher valua-
ton compared to gold than that given
by our ratio. for they could only do so
at a loss.
Moreover. what gold they took from
Us and added to their stock of money
would cause prices to rise abroad. and
we would get higher prices for the
products which we exported in pay
ment of our debts Thus the export of
gold would make the payment of in
terest charges on our immense foreign
debt less burdensome. But as matter
of fact they have little silver bullion
which they could send us. Despite the