The San Francisco call., 1897-09-05

verse to the Republican party is certain.
If apy are foolish enough to credit the
rise to the new tariff law, 10 the gold
standard or to re stored confidence" the
spell will be broken when wheat returns
10 the levi of the last few years. The
disappointment will then be more intense
because of the temporary delusion, and
the Republican papers, which are to-day
calling attention to the price of wheat,
are simply laying up for themselves ad-
ditional trouble.
Advocates of bimeSalIism can rejoice in
the rise while it lasts, and when 1t is over
they can contrast the advantages Of higher
prices due TO the increase ed volume OF
money, with the short-lived benefits OF a
spaSmodic rise. due TO a famine so dis
tressing as to appeal to the sympathy and
charity of the American people.
An official in the Agricultural Depart
ment has recently issued statement es-
timating that farmers of the United States
will receive for their wheat clop this year
Sc veral hundred millions more than they
received for last years crop, and points
out the stimulating effect of this amount
of money on other branches of industry.
This is another confirmation of the argu-
meDts made by the bmetaiists. A large
part of this money comes from abroad
Wheat is not only higher. but more Of it
is being exported. If we had enough
money in this country, its increase in
volume would be an injury. II the in
crease in the volume OF money, secured
by the expectation OF higher wheat, gives
cause for rejoicing, is il not evident that
we now have an insufficient quantityP If
farmers are constantly reminded OF the
large increase of this years crop, will they
not be able 10 calculate their loss more
easily when wheat goes down2 Is it not
possible that the pleasure experienced
from the rise in wheat will lead farmers to
desire an increase in the price of other
farm products? When they learn the ad
vantages of restored prices will they not
seek some more durable means Of sustain
ing prices than drought or famine2
The department official has also con-
tributed to our cause by emphasizing the
benefits received by other ind ustr1es from
the farmers prosperity. The President
during the last campaign gave utteranCe
10 very effective phrase when he sug-
gested the opening of the mills instead of
the minis, but he was answered by :he
statement that the mills would open when
the people were able to buy the products
of the mills. When a Government Off
cial points ont the advantage accruing to
the country from the fact that farmers
have several hundred millions OF addi-
tional money to spend in paying debts
and buying merchandise, he strengthens
the position taken by the bimetallIst. If
the rise III wheat will enable farmers to
pay their interest more promptly and
have money left to buy merchandise, how
much greater would be the general benefit
if the rise extended 10 all agricultural
products?
In calculating the political effect OF the
rise in wheat it must be remem bered that
many farmers were threatened with fore
closure during the last campaign, and
that considerable part of the money re-
ceived for wheat Will be employed in pay
ing off mortgages. Thus intimidation will
be somewhat restricted, but the demand
for merchandise Will be less than 1t would
be under ordinary circumstances.
The reasons given above for believing
that bimetallists will find encouragement
rather than encouragement in the present
conditions are the same which have been
given by other advocates of bimetallism.
Those who advocate free coinage may be
wrong, but they agree upon the principles
which underlie the money question, and
they are not likely to be frightened away
from their position by events which ell
force their arguments.
The law of supply and demand explains
the fall in silver as we'll as the rise in
wheat. To what extent the fall III silver
may have been accelerated by speculation
IN silver bullion l cannot say. 1t would
be possible for bears to run the price of
silver down TO some extent, just as they
sometimes lower the price of grain, and it
would be much easier to manipulate the
silver market, because both the demand
and supply are more limited than the de-
mand for or supply OF grain; but without
considering the effect of speculation both
legislation and circumstances have tended
to lessen the price of silver. The action
OF Japan has lessened the demand for sill
yer, and the United States has not yet
made sufficient progress toward inttrna-
tional bimetal!ism to strengthen the mar
ket. Added TO this the short wheat cop
in silyer-using countries has lessened the
demand for silver for the purchase of
wheat.
For many years the price of wheat kept
company with the price of silver. do
not mean to say that fluctuations were al
ways simultaneous, but they were meas
urably so. This relation between silver
and wheat was commented upon by Mr.
Rus&, Secretary of Agriculture. In his
report OF 1890, page s. he said: "Recent
lesisla don looking to the restoration OF a
bimetallic standard of our currency and
the consequent enhancement of the value
OF silver has unquestionably advanced the
price of wheat in Russia and India, and
in the same degree reduced their power of
competition. English gold was formerly
exchanged for cheap silver and wheat pur-
chased with the cheaper metal was sold
in Great Britain for gold. Much Of this
advantage is lost by the appreciation of
silver in those countries. 1t is reasonable,
therefore, to expect much higher prices
for wheat thar have been received in re-
cent years"
The above quotation explains why
wheat and silver kept together, and also
supports the proposition that legislation
can raise the nrica of siIvsr nv in craas;rc