The morning times., 1896-09-03
Would Result in Disastrous Failure.


the Of the world that price will be higher it
now and that is why in favor of bimeasm We apply
a and to ee ss we % nUx a
true property. money
nR We s ba tho
of silver bullion by gold fallen
gold and driven them We that the opening ins
for silver and that the demand taken with the demand
which exists will be to utilize of
OF silver bullion at throughout the
From Nh, B,yan's Cahanbns Speech.
If Mr. Bryan is correct and the United States could
alone and unaided maintain the price of silver bullion
throughout the world at $1.29 ounce could then
only enforce practical bimetalsm long the produc
of gold and silver remained its present relative
portions Should that change would be necessary for
Congress to FIX different ratio Suppose the output of
gold should increase such destroy its
worth the unit standard of value How then, could
the 16-to-1 ratio be maintained without international
cooperation? That increase is probable if the various
reports of mining experts be credited New gold
fields annually being developed and the worlds out
put of gold is growing in volume each successive year
In 1873 500 600; in 1883 it $95, ooo
1893 it s157 6oo in 1894 it s1sO626 100; in
1895 it s2O3 100000. For 1896 it will be least
s22 OOO One of greatest English experts says
year before the close of the century In view of the
annual increase of put it is unreasonable to
claim that gold has risen in value and that have
fallen because of its appreciation
But it is relief have Mr.. Bryan argue from the
standpoint of supply and demand. He has reached
stage of the discussion where the commercial we'll
the legal ratio of gold and silver must be taken into
sderaton. Unless the United States could and
control the worlds production of these metals the
law of supply and demand would prevent holding
them together at parity We have already tried that
experiment at two different times and failed Once in
1872 when Congress undervalued gold by fixing the ratio
at IS to l. and again 1884, when silver underva
ued by changing the ratio to 16 to l. The first ratio
drove all gold out of the country and the enacted
IN 1884 sent all silver to hiding places These two
experiences demonstrate that only money metal
be kept circulation when the legal and commercial
los differ and they also show that practical bimetalsm
and always has been financial myth 1t is impossible
suppant the law of supply and demand by act of
Congress- and it is ridiculous to say that could
force such act throughout the world and maintain
rigid parity between gold and silver contrary past
experiences of both this and every other country.
Granting that silver could Immediately be forced up
to 81 % an ounce, how could it be kept parity with
gold and how could prices be stimulated long
ability to successfully maintain credit is doubted
The stagnation of business circles and its
sequent bad effects is due entirely to silver agitation
The lack of confidence that prevents the invest
ment of capital and freer circulation of money would
also govern mnts open to free silver The fear
would then prevail, it does, that would
later go to silver basis and capitalists would
tinue refuse to either make loans their
money in business enterprises. The country would be |
better off for the change In fact, the situation
would very much The experience of entire
world in its bimetac experiments clearly indicates that
would have under taken impossible task and when
once free coinage law is enacted mistake could
not be before the would be plunged
into an of financial and industrial ruin The ex-
that free silver needed to supply lack of money
restore parity between gold and silver,
sensical the building of the tower of Babel.
There is abundance Of money both in this country
and throughout the commercial world, for all business
In other countries there complaint either
of falling prices appreciated gold except among farm
and cannot raise the prices of farm products