Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-10-23
THAT DREADED INFLUX.
Significance OF the Increased Production
of Silver Under Free Coinage,

IHRt DHEADEO INFLUX.
significance OF the Increased Production
of Silver Under Free Coinage.
A subscriber propounds the following
inquiry:
Supposing that this country went for free
silver in November. the mines Of this country
would moro than triple their present produc-
tion. Would not this influx of new silver have
some effect upon its market value9
Am q free silver Democrat and the above
que. :; ON Is the only one that cannot satisfac-
toir:y answer. Tho bankers and leading Re
publicans around here are winning more votes
by the above argument than any other. If you
will answer it, / think you will do the cause
good.
That question is very easily answered.
In the first place, there is not shadow
of foundation for the statement that the
production Of silver would triple under
free coinage. Our present output is,
roughly speaking, 80, 000. 900 ounces a
year. If any man knows where 100,-
600, 900 ounces moro can be produced
each year, the country would be delight
ed to have the benefit of his knowledge
The statement is absurd. Secondly. such
an increase Of production would be in
the highest degree beneficial Silver is
wealth, and the more wealth the coun-
try can produce tho better 1t will be for
the country. The average goldite speaks
Of silver production as though it were q
nuisance to bo abated, as if in some in
scrutable way it cast blight upon the
nation. Thirdly, there will be no
fnNpnacn t,nlnSc hn x,a1,,n nf
rises. There would be nothing to stim-
ulate the production. So the statement
that the product would increase carries
with it the admission that under free
coinage silver will rise in value. II,
then. we can increase the value per
ounce and at the same time increase the
output two or three fold, in q business
point Of view it is sheer idiocy for us
not to do it.
Fourthly. very large increase OF
production would affect the market price
of silver measured in gold. II the in
crease were large enough, it would
break the ratio Of 16 to /. Tho effect Of
that would be to send gold to premium
over silver, and our metallic money in
circulation would consist exclusively of
the latter. This would cheaper in pro.
portion AZ its quantity increased. That
is to say, prices would become higher.
1t would take more dollars to buy a
given quantity of goods. The effect
would be to stimulate business, for in
dustrial activity always accompanies
rising prices. Our silver being cheaper
than gold would keep it at home and
use it i'll our own business, rather than
ssIid IL abruad to buy goods and suffer q
loss on the exchange. This is what In
dia, China, Japan and Mexico are now
doing. Thus the premium on gold would
operate as a protective tariff for Ameri-
can industries. At the same time, the
United States having stopped using gold
as currency, that metal would cheaper
abroad. where our surplus products are
sold, and our wheat, cotton, petroleum,
hides and breadstuffs would exchange
for more gold than they do now.
Finally, whether gold went to a pre-.
MUM or not, the remOnetization of sill
yer would enable US to compete in the
European market ON more equal terms
with silver using nations. In our cur.
rency an ounce of silver would represent
$1.29, no matter how silver might rate
with gold. If We sold a bushel Of wheat
in London for an ounce Of silver In
American money it would be worth
$1.29 instead of 6S cents as it is now.
Under present conditions, when an East
Indian sells bushel of wheat for an
ounce of silver, it means as many rupees
rs 1t ever did. These rupees will pay as
much taxes and debt as they ever would
in Hindustan and buy the same neccs-
saries Of life. In short, the Indian gets
as much money and as good money as
he ever did.
The American, competing with the
Indian. also gets an ounce of silver OF
its equivalent. But this equivalent in
our appreciated money is. as before
stated, only 90 cents. This 6S cents will
buy for the American farmer as much
Of some things as $l.29 would % years
ago, but 1t will not buy as much of all
things Some prices have fallen more
than Others Educational charges, doc
tors bills. lawyers fees and the like
have fallen very little, if any. Debts
remain tho same, while taxes have actu.
ally increased. National Bimetallist.