The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-08-20

theoretic defense of 1t. The restOra-
ton of bmetallism in the United States
will take away from gold much of its
purchasing power, as much as added To it
by the decentralization of silver by the
United States. The silver dollar is not
now redeemable in gold either in law or
by administrative policy. We contend
that free and unlimited coinage by the
United States alone will raise the bullion
value of silver to its coinage value and
thus make silver bullion worth S1.29 per
ounce throughout the world This
proposition is in keeping with natural
laws. not in defiance to them The best
known law of commerce is the law of
supply and demand. We recognize this
law and build our argument upon it. We
apply this law to money when we say
that a reduction in the volume of money
will raise the purchasing power of the
dollar: we also apply the law of supply
and demand to silver when we say it will
raise the price of silver bullion. Corn
can be produced almost without limit,
provided it can be sold at a price suffi-
cient to stimulate production. but gold
and silver are called precious metals be-
cause they are found, not produced.
These metals have been the object of
anxious search as far back as history
runs yet according TO Mr.. Harvcy's cal
culatiOn all the gold in the world can be
melted into 22-fcGt cube and all the
silver coin in the world into 6G-fOot
cube. Because gold and silver are limit
ed both in the quantity now on hand and
in the annual production, it follows that
legislation can fix the ratio between Them
Any purchaser who stands ready TO take
the entire supply of any given article
at certain price can prevent that arti-
Gle from falling below that price. SO the
"a f,,t ,F,,II ,,1.
silver by creating Il demand greater than
the supply. | believe that several ia
tions, by entering into an agreement TO
coin at Il fixed ratio all the gold and sill
Yer can maintain the bullion value of the
metals at the mint ratio. When the mint
price is thus established it regulates the
bullion price, because any person desiring
coin may have the bullion converted into
coin at that price, and any person dcsir
ing bullion can secure it by melting the
coin. The only question on which inter-
national bimetalists and independent hi
mctallists differ is, can the United States
by the free and unlimited coinage of sill
Yer at the present legal ratio. create Il
demand already in existence. will he Suf-
ticient to utilize all the silver that will
he presented at the mints? They agree
in their defense of the bimetalic prin-
ciples and they agree in unatcrable OBJ
position to the gold standard. Interna-
tiOnal bimctallistS can not complain that
free coinage gives to the owner of silver
all advantages offered by independent
bimetallism at the ratio. International
can not accuse the advocates
of free silver of being bullion owners
who desire to raise the value of their
bullion, or debtors who desire to pay
their debts in cheap dollars. or 'dcma-
gogucs who desire to curry favor with
the people They must rest their oppo-
sition upon one ground only. that the sup
ply of silver available for coinage is too
large to be utilized by the United States.
In discussing this question we must CON
slider the capacity of our people to use
silver and the quantity of silver which
can come to our mints. 1t must he re-
mcmbcred that we live in Il country only
developed and that our people
in the world in their power to consume
and produce.
"Our extensive railroad developments
and enormous international commerce
must he taken into consideration How
much silver can come hcreI Not the
coined silver of the world. because most
of it is more valuable ut this time in
other lands than it would be in our mints
under free coinage. If our minis are
open to free and unlimited coinage ut
the present ratio merchandise silver can
not come here because the labor applied
TO it has made it worth more in the form
IF merchandise than it would he worth
1T our mintS. We can not even expect
Ill of the annual product of silver, be-
cause India. China, Japan. Mexico and
Ill other silvcr-using countries must sat
sly their annual needs from the annual
products: the arts will require large
AMOUNT and the gold standard countries
will need considerable quantity for sub
'idiary coinage
I'VE will he asked to coin only :hat
which is not needed elsewhere. Many
ear that the opening of our mints will
!e followed by the enormous increase in
he annual production of silver. This is
conjecture. Silver has been used as
money for many years and during all
he time the world has never suffered
rom an Ovcrproduction. If for any rca-
on the supply of gold or silver in the flu
ure exceeds the requirements of the arts
md needs of commerce we confidently
nope that the intelligence of the people
will he sufficient TO devise and enact any
cgislatiOn necessary for the protection
If the public. Ii is folly to refuse to the
'cople the money which they now have
II more than they need. | am firmly
that by opening our minis to
rec and unlimited coinage at the present
alto we can create a demand for silver
which will keep the price of silver bull
ion at S1.29 per ounce measured by
old.
Some of our opponents attribute the
all in silver to the fact that during the
nst half century the worlds supply has
increased more rapidly than the worlds |
upply of gold. This argument is entirely |
answered by the fact that during the last |
We years the annual production of gold |
as increased more rapidly than the an
ual production of silver Since the gold !
rice of silver has fallen more during the |
lst five years than it ever fell in any |
rcvious years in the history of the world |
is evident that the fall is not due to |
increased production. Prices can he low
red as eifectually by decreasing the de- |
land for an article as by increasing the |
upply of it. and it seems certain that |
he fall in the gold price of silver is due |
0 hostile legislation and not to natural |
TVS. Our opponents can not ignore the |
act that gold is now going abroad i'll |
pitc of all legislation intended to pre-
cnt it, and no silver is being coined to
IKE its place. Not only is gold going
broad now, but it must continue to go
broad as long rs the present financial
olicy is adhered to, unless we continue
, borrow from across the ocean, and
ven then we simply postpone the evil,
ecause the amount borrowed. together
18th interest on it, must be paid in an