Omaha daily bee., 1897-08-02
REASON AND ExpERiENoB.


piled to all theories-the test of reason
and the test of experience. The theories
advanced during the presidential cam
I paign by the advocates Of free and un-
! limited silver coinage at the ratio of 10
to 1 when subjected to these tests have
proved erroneous. Measured by the test
of reason they are at variance with the
Interchangeable law of supply and demand.
| The assumption that the opening of
the American miuts to the free and un-
| limited coinage of silver would create a
| demand large enough 10 overcome the
! divergence between the mint ratio and
the market ratio of the two metals is
as fallacious as would be the assumption
that the free milling OF all the grain in
the United States would raise the price
of wheat to 50 bushcl. 1t is contrary
to common sense and sound reason to as
sumo that the owners of gold would ac-
ccpt sixteen ounces of coined silver for
one ounce of coined gold so long as an
uncoined ounce of gold is eXchangeable
for thirty-two to thirty-six ounces of sill
yer bullion. The mere fact that the sill
yer coined at the mint would be legal
tender in payment of debt would not re-
store the value Of gold and silver to the
old ratio any more than the grccnbacks
could be made equal in value to gold
during the war. The srccnbacks were
legal tender, but their purchasing power
went down as low as 16 cents on the
dollar The contention that the green
backs would have been equal to gold If
payable for customs dues is not borne
out by experience. The continental cur
rency of the revolution was legal ten
der for all dues, public and private, in
each of the colonies, but that did not
prevent them from dcpreciating to the
point of absolute worthlcssness. Inas-
much as the most rampant of the free
silver champions does not propose the re-
dcmption or exchange of silver coin for
gold at the ratio of 16 to l by the gov
ernment. it stands to reason that the
coined silver would not be eXchangeablc
for gold, except at the market ratio.
The prediction that silver would rise
in the markets of the world to the ratio
of 1G to | within very short time after
the United States had opened its mints
to free coinage is equally visionary and
basclcss. 1t is contradcted by the stub
born fact that the market price of silver
declined more than 40 per cent within
200 years after the discovery of America
when, during all that period, the nations
of Europe were all on a silver basis and
coinage free in all the countries. In
order to keep the value of their coins
at parity with their metal values, Eng
land. France, Spain, Germany and other
countries We're compelled to change their
mint ratio from time to time to corre
spond with the relative market values of
the metals.
The theory advanced by the free coin
age advocates which drew millions of re-
cruits to their ranks was that the prices
of all products of the farm and workshop
were governed by the price of silver. In
other words they asserted that the de-
cline of prices of farm products and man.
ufactured articles was due entirely to
the fall in the price of silver brought
about by silver decentralization. This
theory is being effectively exploded by |
recent experience. While silver has
steadily declined and is now selling for |
less than it ever did. prices of staple |
farm products ard factory fabrics are
advancing.
The most absurd theory Of all, that the |
money power is conspiring to make |
money dear by making gold scarce. has
also received decisive setback. There
never was time in the history of the
world when gold was being mined in
greater quantities than now, and never
in the history of the world has money
been cheaper in the money centers both
rs relates to volume and interest rates.
While the money power doubtless exerts
4 potential influence in shaping the af-
airs of nations the imaginary conspiracy
to make money scarce and dear was al
ways a myth.