The times. (Owosso, Mich.) 1882-1897, 1896-08-28
PRACTICAL EFFECTS OF FREE
COINAGE UNLIMITED.
Interest Rates Would Rise and Discounts
BE Made on All Prices for Grain
How Better Times Could
Come.

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money. Mr. Mars has given the subject
careful study and as result of his inyest-
cations he makes the public announcement
that as farmer he is decidedly opposed to
free coinage of silver except under absolute
guaranty that the silver dollar so coined will
be worth intrnsically the same as gold.
That such would be the result of free coin
ago Mr.. Mars does not believe possible I'M
less provided by an international agreement.
1.-The proposal OF the followers of Bryan
amounts simply to this" said Mr.. Mars,
THAT we will go to the silver basis and let
our gold leave us, and that is folly too
great to be considered patiently. What ad-
vantage can there possibly be to anyone
from a change simply from one basis to
another? There results from it no increase
in money circulation. On the contrary,
until the gap caused by disappearing gold is
filled by silver there would be severe
contraction OF actual money as well as of
credits, which is Infinitely worse. And
once we were on the silver basis silver would
naturally appreciate in value, so that again
we would be doing business on rising
money basis, the very thing now COM
planned of.
VALUE OF FARM PRODUCE
"Yes, know that many farmers have
hope that free silver would increase the val
lie of farm products. But my investigation
leads me to directly opposite conclusions.
History tells me that putting forth cheaper
money in country drives out of that coun-
try its standard gold money, for the obvious
reason that gold, like any other commodity,
goes where it can earn its owners the most
steady and sure profit. If it stays here the
only profit it can earn is the uncertain profit
of fluctuations as commodity, while abroad
1t would earn safely and surely the profits
of interest. There are some farmers who
have an idea that free silver would help
them out of their debts, but they are class
who can't think long enough on any subject
to measure fraction of the results of free
coinage. 1t doesn't seem to occur to them
that the holder of the debt would demand
the property held as security or else an in
crease in the rates of interest to compensate
for the decrease in the value of the money
paid as interest. Suppose that am mortg
aged for $1,000 at per cent and am obliged
to renew it at ten per cent, what have done
but virtually increased my debt one-half, as
ten per cent on 81, is equal to nearly
seven per cent on $1,000. And there is no
assurance whatever that free coinage will
add one dollar TO farmers ability to pay his
debts.
DISCOUNTS ON CROPS.
"The threat of cheaper money has al
ready caused nearly $500, 900, 900 to leave
us, and herein is an explanation of the very
low prices we obtain for our farm products.
When gold Is induced to leave the country
the importers Of foreign goods find 1t easier
to pay for such imports by shipping gold
instead of sending wheat, cotton and meats
as before. In other words, the prices for
these products have to be reduced to the
point that discounts the preference for gold.
And not only this, but the withdrawal of
gold to that extent reduces the amount of
money available for moving crops, and so
causes low prices. So 1 claim that free
coinage will cause gold to be exported for
several years as fast as it is mined, and
while so going it will displace expcsts of in
dustrial products and cause stringent
market for them. For these reasons am
justified in believing that the free coinage
of silver would further depress the price Of
farm products.
II would call particular attention to the
fact that free silver does not mean better
prices for farm products. Better prices will
come when Europe wants our farm products
instead of our gold. That will be when
gold can find profitable use here; when the
opportunities for investment are multiplied
and protected by the reasonable protection
of our industries. The enlargement of the |
markets for farmers by reciprocity has
more good promise in 1t than all free silver
expectations"