The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1896-08-22

nations will be compelled 10 buy at the price
which we fix. Many fear that the opening of
our mints will be followed by an enormous in
crease in the annual production Of silver.
no oyERPRoDUcTION Of SILVER.
This is conjecture Silver has been used as
money for thousands of years, and during all
of that time the world has never suffered from
an overprOduetion.
If, for any reason, the supply Of gold or sill
yer in the future ever exceeds the require
ments the arts and the needs of commerce,
we confidently hope that the intelligence of
the people will be sufficient TO devise and
enact any legislation necessary for the pro-
lection Of the public. II is folly TO refuse to
the people the money which they now need
for fear they may hereafter have more than
they need. | am firmly convinced that by
opening our minis to free and unlimited com
age at the present ratio we can create de-
mand for silver which will keep the price Of
silver bullion at Sl.29 per ounce, measured by
gold.
CAUSE OF sILvER's DECLINE.
Some of our opponents attribute the fall in
the value of silver, when measured by gold,
to the fact that during the last quarter Of
century the worlds supply of silver has in
creased more rapidly than the worlds supply
of gold This argument is entirely answered
by the fact that, during the last five years, the
annual production of god has increased more
rapidly than the annual production of silver.
Since the gold price of silver has fallen more
during the last FIVE years than it ever fell in
any previous five years in the history of the
world, it is evident that the fall is not due to
increased production. Prices can be lowered
as etfectually by decreasing the demand for
an article as by increasing the supply of 1t,
and it seems certain that the fall in the gold
price of silver is due to hostile legislation and
not TO natural laws
GOLD GOING ABROAD.
Our opponents cannot ignore the fact that
gold is now going abroad in spite of all legis-
lation intended to prevent it, and no silver is
being coined to take its place. Not only is
gold going abroad now, but it must continue
to go abroad as long as the present financial
policy is adhered to. unless we continue 10
borrow from across the ocean, and even then
we simplypostopne the evil, becansethe amount
borrowed, together with interest upon it, must
be repaid in approaching dollars.
RESTORING STABILITY OF PRICES.
The American people now owe large sum
to European creditors, and falling prices have
left larger and larger margin between our
net national income and our annual interest
charge. There is only one way to stop the
increasing flow of gold from our shores, and
that is to stop falling prices. The restoration
ofbimetallism will not only stop falling prices,
but will, TO some extent, restore prices by re-
ducing 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
financial system which will maintain or
restore prices as foreign creditors have to IN
sist upon financial system that will reduce
prices. But the interests of society are far
superior to the interests of either debtors or
creditors, and the interests of society demand
financial system which will add to the volume
OF the standard money Of the world and thus
restore stability to prices.
THERE WILL BE NO 50-cEST DOLLARS
Perhaps the most persistent misrepresenta-
ton that we have to meet is the charge that
we are advocating the payment of debts in
50-cent dollars. At the present time and
under present laws a silver dollar, when melt
ed, loses nearly half its value, but that will
not be true when we again establish mint
price for silver and leave no surplus silver upon
the market to drag down the price of bullion.
Under bimetallism silver bullion will be worth
as much as silver coin, just as gold bullion is
now worth as much as gold coin, and we be-
lieve that a 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
under the euphonious pretense that they are
upholding public credit and national honor
In answer to the charge that gold will go
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
he would rather have. In other words, when
gold leaves the country those who formerly
owned it will be benefited. There is no pro-
cess 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 upon 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.
PARITY CAN BE MAINTAINED.
Those who deny the ability of the United
States to maintain the parity between 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 a
silver basis and raise gold to premium. 1t
is no reflection upon our sister republic to re-
mind our people that the United States is
much greater than Mexico in area, in popula-
lion aud in commercial strength. 1t absurd
to assert that the United States is not able to
do anything which Mexico has failed to ac-
complish. The one thing necessary in order
to maintain the parity is to furnish demand
great enough to utilize all the silver which will
come to the minis. That Mexico has failed
to do this is no proof that the United States
would also fail
1t is also argued that, since a number of the
nations have demonetized silver, nothing can
be done until all of those nations restore BIZ
metallism. This is also illogical 1t is i'm
material how many or how few nations have
open minis TO furnish a monetary demand for
all the gold and silver available for coinage.
COST OF PRODUCTION OF SILVER
In reply to the argument that improved
machinery, has lessened the cost of producing
silver, it is sufficient to say that the same is
true of the production of gold, and vet, not
outstanding 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
instance, the cost Of producing gold should be
reduced 80 per cent. without any increase in
the output the purchasing power of an ounce
of gold would not fall. So long as there is a
monetary demand sufficient to take at fixed
mint price all the gold and silver produced the
cost of production need not be considered.
PRICES OF GOLD AND SILVER.
1t is often objected that the prices of gold
and silver cannot be fixed in relation to each
other because of the variation 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 sup
ply of both, relative production becomes i'm
material In the early part of the present
century the annual production of silver was
worth, at the coinage ratio, about three times
as much as the annual production of gold;
whereas, soon after 1s49, the annual produc-
ton of gold became worth about three times
as much, at the coinage ratio, as the annual
production of silver, and yet, owing to the
maintenance of the bimetallic standard, these
enormous changes in relative production had
but slight effect upon the relative values of
the metals.
BENEFIT TO THE MINE-owNERs.
If it is asserted by our opponents that the
free coinage of silver is intended only for the
benefit of the mine-owners, it must be remem-
bered that free coinage cannot restore to the
mine-owners any more than demonstration
took away, and it must also be remembered
that the loss which the demonstration of sill
yer has brought to the 4mine,owners is nsig-
IL