The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1896-06-11

Whareyer we may think OF this jew S
profanity we must all admit that he
had pretty clear conception of how
articles of commerce may be made
worth more or less by law He knew
what this banker does not know, or
pretends not to know, that by virtue
Of such a law beef would 60 up and
bacon would go down.
Nor is there manufacturer in the
land, from Carnegie to Niedringhaus,
clamoring for a protective tariff law
who does not sufficiently understand
how goods may be made worth more
by law to contribute freely Of fat to
the Mckinley boom, that they may
grow fatter by law
Now, l will assume that this 10-year-
old son of my banker friend has been
to school long enough to learn that de-
mand and supply regulate the exchange
value of every article of commerce,
whether money or commodity. 1t is
all important that he keep this fund
amental truth in mind, not so long
only as it suits his preconceived ideas,
but all the time.
The people of the United States use
two kinds Of grain for food in about
equal qualtities-corn and wheat.
Suppose every State in the Union We're
to impose such a heavy tax on wheat
as virtually to forbid It's use as a food,
does not this 10-year- old boy see how,
by destroying the larger portion of the
demand for wheat, it's price would go
down and the price of corn go up?
And that the decrease in the worth of
/ one and the increase in that of the
other would both be the result of laws
affecting demand and supply:
The Confederate States during the
late civil wa imposed tax of $40 per
bale on cotton to discourage it's culture
and to encourage the culture of corn.
This destruction of supply. and by law,
sent the price Of cotton up to so cents
per pound in gold.
Prior to 1878 the commercial world
had for untold ages used two metals
for standard money as well as for re-
demptiOn, in about equal quantities
Tin coin value)-one was silver and one
was gold. In 1873 and 1874 all the
greatest nations destroyed, and by law,
silver as redemption money, thus de-
stroying the demand for it for this
purpose and throwing all the demand
on gold. Is it, can it be necessary to
tell this 1O-year-old boy that these laws
sent the price OF exchange value of sill
NtI uOWu anu tlstU OE SOlu up.
Is it not almost beyond the compre-
hension of men of ordinary intellect
that such men as my banker friend
cannot see why so much more silver is
produced than is required when his
friends Cleveland, Carlisle and others
insist upon destroying the require
ments for silver?
May | venture to suggest to my
banker friend that if he will do little
independent thinking for himself he
will understand that the reason, and
the only reason, why this loss by de-
probation OF 40 per cent. Oh silver" is
the law Of 1878, which destroyed the
demand for silver for redemption for
real money, and that if gold had been
demonetized instead of silver it's Gloss
by depreciation would have been still
greater, because it has not the intrinsic
value to fall back upon that silver has.
But Mr.. Carlisle has told my friend
(I must call him my friend notwith-
standing the rudeness of his letter.
that it is the increased production of
silver which has lessened it's price,
and he takes it in with absolute conf
dence, Notwithstanding Mr. Carlisle s
official department, through his
Director Of the Mint, and in his official
report of Oct. II, 1898, page 50, tells
him that during the 100 years from
1892 to 1892 there has been nearly
$556, 900, 600 more of gold produced
than Of silver in the world, and in his
report of June 30, 1894, page so, he
tells him that during the twenty years
from 1878 to 1898 there were upwards
of 1896, 900, 600 more of gold produced
in the world than of silver, and on
page 53 of the same report that during
the years 1891, 1892 and 1893 there
were $95, 900, 900 more of gold coined
in the world than of silver. Eut as all
the demand for redemption money has
been thrown upon gold there is not
enough, can never be enough, to meet
the requirements Of the increasing
business Of mankind, until silver has
been restored to its corruptly lost none
tary functions.
And Mr.. Carlisle has told him, too,
that the reconciliation of silver would
lessen the value by nearly one-half of
every bond and mortgage and other
credit in the civilized world, and in
the very same breath told him also that
the characterization of silver has not
increased the value of these things at
all, and he accepts this inconsistent
nonsense as Gospel truth. And have
no doubt that if it We're to his interest
to believe it, he would accept with
equal confidence the equally sensible
statement if Mr.. Carlisle were to tell
him that it is 1000 miles from st.
Louis to Washington, but only 900
miles from Washington to ST. Louis
cannot consent to close this letter
without assuring my banker friend
that if he will do little independent
investigation for himself he will find
that history, as far back as we have
any reliable statistics, shows that no
matter what the relative increase or
decrease in the supply Of either metal,
while both were in demand for re-
demption money, so inexhaustible is
the demand for money, the relative
| values or ratio had never varied more
than per cent. Sometimes there were
from two to three times as much silver
produced as of gold; sometimes from
two to four times as much gold pro-
duced as of silver. Yet the ratio kept
steadily within 3 per cent of fixed
point.