Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-08-14

decreasing the demand for an article as
by increasing the supply of 1t, and 1T
seems certain that the fall in the gold
price of silver is due to hostile legisla-
lation and not to natural laws. Our OPP
ponents can not ignore the fact that gold
is now going abroad in spite of all legis-
lation to prevent it, and no silver is be-
ing coined to take its place. Not only is
gold going abroad now, but 1T must con-
tlnue to go abroad as along rs the pres
ent financial policy is adhered to, unless
we continue to borrow from across the
ocean and even then we simply postpone
the evil, because the amount borrowed,
together with interest upon 1t, must be
replaced. The American people now owe
large sum to European creditors, and
falling prices have left larger and
larger margin between our national in
come and our national interest charge.
There is only one way to stop the in
creasing flow of gold from our shores,
and that is to stop the falling prices.
The restoration of blmetallism will not
only stop falling prices but will to some
extent restore prices by reducing the
worlds demand for gold. If it is argued
that rise in prices lessons the value of
the dollars which we pay to our creditors,
/ reply that in the balancing of equities
the American people have as much right
to favor a financial system which will
maintain or restore prices as foreign
creditors have to insist upon a financial
system that will reduce prices. But the
interests of society are far superior to
the interests of either debtors or oredi-
| &ha int 70 of oku n
| financial system which will add to the
volume of the standard money of the
world and thus restore stability to prices.
FIFTY GENT DOLLARS.
Perhaps the most persistent misrepre-
sentation that we have to answer is the
charge that we are advocating the pay
ments of debts in so cent dollars. At the
present time and under the present laws
silver dollar when melted loses nearly
half it's value, but that will not be true
when we again establish mint price for
silver aud leave no surplus silver upon
the market to drag down the price of
bullion. Under bimetallism, silver bull
lion will be worth as much as gold coin,
and we believe that silver dollar will be
worth as much as gold dollar.
The charge of reputation comes with
poor grace from those who are seeking
to add to the weight of existing debts by
legislation which makes money dearer
and who conceal their designs against the
general welfare under the euphonious
pretense that they are unfolding public
credit and national honor.
In answer to the charge that gold will
90 abroad, it must be remembered that
no gold can leave this country until the
owner of the gold receives something in
return for it which be would rather have
In other words, when gold leaves the
country those who formerly owned it will
be benefited. There is no process by
which we can be compelled to part with
our gold against our will, nor is there any
process by which silver can be forced up.
on us without our consent. Exchanges
are matters of agreement, and if silver
comes to this country under free coinage
it will be at the invitation of some one
in this country who will give something
in exchange for it.
Those who deny the ability of the
United States to maintain the parity be.
tween gold and silver at the present legal
ratio without foreign aid point to Mexico
and assert that the opening of our minis
will reduce us to silver basis and raise
gold to premium. 1t is no reflection on
our sister republic to remind our people
that the United States is much greater
than Mexico in area, in population and
in commercial strength. 1t is absurd to
assert that the United States is not able
to do anything which Mexico has failed
to accomplish. The one thing necessary
in order to maintain the parity is te
furnish demand great enough to utilize
all the silver which will come to thu
mints. That Mexico has failed to do this
is no proof that the United States would
also fail.
1t is also argued that since number Of
the nations have demonetized silver
nothing can be done until all of those ma
tions restore bimetallism. This is also
illogical. 1t is immaterial how many OF
how few nations have open mints pro.
vided there are sufficient open mints to
furnish monetary demand for all the
gold and silver available for coinage.
| In reply to the argument that improved
machinery has lessened the cost of pro
ducing silver, it is sufficient to say that
the same is true of the production oil
gold, and yet, Notwithstanding that, gold
has risen in value. As matter of fact
the cost of production does not determine
the value of the precious metals, except
as it may affect the supply. If, for in
stance, the cost of producing gold should
be reduced 80 per cent, without any in
crease in the output, the purchasing
power of an ounce of gold would moi
fall. So long as there is monetary de-
mand sufficient to take at fixed mint
price all the gold and silver produced
the cost of production need not be con.
sidered.
1t is often objected that the prices OF
gold and silver can not be fixed in rela.
ton to each other because of the varia.
ton in the relative production of the
metals. This argument also overlooks
the fact that, if the demand for both
metals at fixed price is greater than the
supply of both, relative production be.
comes immaterisl. In the early part Of
the present century the annual produc.
ton of silver was worth at the coinage
ratio about three times as much as the
annual production of gold; whereas, soon
after 1849 the annual production of gold
became worth about three times as much
at the coinage ratio, as the annual pro
duction of silver, and yet, owing to the
maintenance of the bimetallic standard
the enormous changes in relative produc
ton had but slight effect upon the
relative values of the metal.
THE MINE OWNERS.
II If it is asserted by our opponents thai
the free coinage of silver is intended only
for the benefit of the mine owners, il
must be remembered that free coinag,
can not benefit the mine owners any NOR,
than characterization took away; and i
must also be remembered that the losl