Omaha daily bee., 1897-08-15

FLOATING IN A BOTTOMLESS TUB
When asked IL the recent rise in the
price of wheat was not a contradiction
of the argument of the free coinage
men that wheat and silver always trav-
elcd side by side in market value. Sen
ator Henry NJ. Teller of Colorado de-
clared to a reporter of The Bee last
week:
am surprised that such question should
be asked. 1t is generally admitted by the
press OF the country and those who are IA
mlliar with conditions that the advance in
wheat is due to the short crop In the world.
Silver men have never denied that the law
of supply and demand regulates the price Of
wheat, but the slver-using countries are
better prepared to enter the markets OF the
world with their product OF wheat than the
gold countries, and thereby stimulate the
price Of the white metal When India and
the South American countries had a good
crop of wheat. they sold 1t for silver and re-
ceyed for It about twice the value in their
money that an American farmer would re-
ceive This double price to them was in
money which they could use in paying their
taxes and other fixed expenses. This created
a demand for silver in those countries.
which increased it's price. Now those coun-
tries have no wheat to exchange for silver,
and are out OF the field of competition in
the silver market.
This is another example of the differ
ence between before taking and after
taking. Senator Tellcr's logic in 1897
is most decidedly at variance with the
logic of Senator Teller and the other
g,,,.. ILL. tn, In Lao
standard free silver text book known
as Coins Financial School, this doctrine
is laid down as an automatic principle
Of economies:
An ounce Of silver bullion would buy a
bushel of wheat in 1873 and 1t will buy
bushel of wheat now. Two ounces Of silver
bullion would buy days labor In 1878 and
two ounces will buy days labor now.
The declaration that an ounce of
silver bullion should exchange for
| bushcl of wheat at all times and at all
places was accepted as genuine coin
| last year among all the silver camps
| from Maine to California and Mexico
| to Alaska. The demonctization of silver
| was held up as the sole cause of low
| prices, not only of wheat, but of all
| other products of the farm and factory,
| which We're said to be gagged by the
| price of silver. But silver and wheat
have parted company and refuse to
| travel together in 1897. 1t now takes
| nearly two ounces of silver to buy one
| buShel of wheat on the New York
market. The discrepancy between the
theory of 1896 and the facts of 1897
must be reconciled, and therefore Sen
ator Teller reverses his former teach
| ing and admits that the price of wheat
is governed by the laws of supply and
demand and not by the price of silver
bullion any more than by the price of
copper or tin.
| Twelve months ago Teller, Bryan.
Harvey and the other silver apostles
proclaimed from every stump that the
| American farmer could not compete
with the India farmer SO long as an
| Englishman could buy his wheat in
India for silver without regard to it's
market value and could sell India
wheat bought with silver in competition
with American wheat paid for in gold.
That fiction is now exploded by Senator
Teller himself. With the great diver
gence between the prices of silver and
wheat staring him in the face he claims
that the India farmer has the ad-
vantage of the American farmer be-
cause he receives his pay for wheat in
silver representing twice the value in
money that an American farmer re-
| ceives.
This is n confession that the story
that the India farmer did not know the
| difference between $1.29 silver and 60
cent silver and was glad to sell to the
Englishman at the old prices paid in
deprecated silver never had any foun-
daton in fact The point which the
senator seeks TO make in favor of the
India farmer who sells for silver and
pays his taxes and debts in silver is
equally fallacious. The India farmer
has no mortgage debts running back
over Il period of years. He ncurs his
debts between one crop and the next.
He buys at silver prices and sells ut
silver prices The same is true regard
ing his taxes. The government must
have so much revenue, and if silver
goes down more silver must be paid
in in taxes and the taxpayers have
no advantage except where government
salaries are scaled by payment in silver
Senator Teller and his deuded free
silver followers might as well admit
now as later that the bottom has
dropped out of the tub in which they
have been trying to float on the polti-
cal sea.