The herald., 1897-09-07

disadvantage, ana CelndHu an iiAci eaSe
in wages Labor organizations, aided by
an increased demand for labor, WouIo
obtain this increase and thus secure
protection from harm. The good effect
of a general rise and subsequent Level
of prices would be widespread and per-
manent. The owners of money and hold
ers of fixed investments are the. only
ones to whom rising prices bring general
| injury, and this injury is partly remedied
| by the greater security given to invest
| ments.
If it could be said that rising prices do
| injustice to the owners of money and
| those enjoying fixed incomes let it be re-
membered that the restoration Of BIZ
metallism can only take away the ad-
vantage which the gold standard gave
1t is a choice between falling prices in
definitely continued and return to the
| bimetallic level. The gold standard gives
| a perpetual advantage to the money
| owning class and works perpetual in-
Justice to producers of wealth, while BIZ
metallism gives a temporary advantage
to producers Of wealth at the expense of
money-owners, and then establishes
Justice between all classes by preserv-
| ing stability in the purchasing power OF
/
| a dollar.
| Those who understand the cause of the
| recent rise in wheat know that the price
| will fall when the foreign crops again
| become normal; in fact, wheat has al
ready receded twice owing to fear that
the first reports of the foreign crop fail
IRE were exaggerated. The export price
Of wheat for the year ended June 30,
ha
was so cents, and by the 1st OF Novem-
ber, 1898, the price had fallen pelow ~
cents.
What will be the political effect OF this
temporary advance? That 1T must pe
adverse to the Republican party is GER
tain. If any are foolish enough to creolt
the rise to the new tariff law, to the COLO
standard or to restored confidence,
the spell will be broken when wheat
returns to the level of the last few years.
The disappoin tment will then be more
intense because of the temporary de-
fusion. and the Republican papers, whicn
are today calling attention to the price
of wheat, are simply laying up for them
selves additional trouble.
Advocates of bimetallism can rejoice
| in the rise while it lasts. and when 1t
| is over they can contrast the advantages
of higher prices, due to the increased vol
ume of money, with the short-lived bene-
fits of a spasmodic famine so distressing
as to appeal to the sympathy and char
ity of the American people.
| An official in the agricultural depart
ment has already issued a statement
estimating that the farmers of the United
States will receive for their wheat crop
this year several 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 conf1rma-
| ton of the arguments made by the bi-
lmetallists. 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,
the increase in volume would be an
injury. If the increase in the volume of
money. secured by the expectation of
higher wheat, gives cause for rejoicing
| is it not evident that we now have an
insufficient quantity? If farmers are
constantly reminded of the large in
crease of this years crop, will they not
be able to calculate their loss more easily
when wheat goes down? Is it not posi-
i bic that the pleasure experienced from
the rise in wheat will lead farmers to de-
; sire an increase in the price of other
farm products? When they learn the
advantages of restored prices, will they
not seek some more durable means of
sustaining prices than drought or fam
| inc?
The department official has also con-
| mi 70 hxyo int I,
! benefits received by other industries 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 mints, but he was answered by the
statement that the mills would open
when the people were able to buy the
products of the mills. When a govern
ment official points out the advantage
accruing to the country from the fact
| that farmers have several hundred mil
lions Of additional money to spend in
paying debts and buying merchandise,
he strengthens the position taken by the
bin metallist. If the rise in wheat will en-
able 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 ex-
tended to all agricultural products?
In calculating the political effect of
the rise in wheat, it must be remem bered
that many farmers were threatened with
foreclosure during the last campaign,
and that considerable part of the money
received for wheat will be employed in
paying off mortgages. Thus intimida-
tion will be somewhat restricted, but the
| demand for merchandise will be less
than It would be under ordinary circum-
stances
The reasons given above for believing
that bimetallism will find encourage
ment rather than discoura cement in the
present conditions are the same which
have been given by other advocates OF
bmetallism. 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 theirposi-
| lion by events which enforce their ar
gnments.
The law of supply and demand ex-
plains the fall in silver as we'll as the rise
in wheat. To what extent the fall In
silver may have been accelerated by
speculation in silver bullion canno;
say. 1t would be possible for bears tc
1 run the price Of silver down to some ex.