The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1897-08-21
ENHANCED VALUE OF GOLD.

neapolis Tribune does not entertain that
opinion, but believes in the cumulative
theory of money, as may be seen from
the following extract in replying to
the Irish Standard: while gold as tie
measure OF values, has apparently re-
manned stationary. the prices of other
articles, measured in gold, have decin-
ed, making gold practically higher in
price. Thus the act of legislation has
been unable to legislate single cent of
value out Of gold. but gold has been ad
vanced (virtually) in price by the in
creased demand for it,
AS we stated last week the govern
ment has made the price of gold $2O.67
free and unlimited coinage on private
account. The price of gold will not fail
below that figure; but it may go be-
yond it in the market, according to its
ourself are in perfect accord on that
point. But we cannot agree with it.
when it says: 'In like manner the
coinage value of silver was fixed by law
this day; but that has not prevented the
commercial value Of silver declining to
SIS cents an ounce. Thus the act of
legislation has not sufficed to legslate
a single cent of value into silver"
The government does coin silver at
S1.29 per ounce, but not on private ac>
count as formerly; and it denies it the
privilege accorded to gold, namely free
and unlimited coinage The govern
ment. instead of admitting silver to it's
minis from private individuals, DIS it
does gold, buys the silver itself in the
market for limited coinage. and hence
the discrimination against it has
brought down the price from Sl.29 to 65
cents per ounce. Had the surrep.itious
act Of 70 not been passed the price Of
silver in the market would not be less
than $l.29, but perhaps more. Like god,
its price in the market would depend on
its production, and the demand for it.
AT one time. on account of the great
demand for silver, in the market, the
silver dollar was worth three cents more
than the gold dollar. and the result wa:
that the owners OF silver bullion sold
it in thenarket instead Of sending it
to the minis for coinage
The Tribune sticks to it's statement
that mo cent of valuation can be direct
ly legislated into Or out of a dollar" Ii
what we have already said does not
change that expressed view of our con-
temporary. we will further illustrate
that legislation does add to and take
from the value of a silver dollar.
In 1878. when the Sherman bill passed
the price of silver Immediately went up
in Che markets of the world from tho
fact that our government agreed to pur-
chase so many million ounces per month
from the owners Of silver bullion, and
give them in exchange what is known a.;
the sherman notes." The increased
demand for silver bullion in this way
enhanced its value. as can be seen from
referring to tabulated statements giving
it's price at diffenet times. In 1909,
when the Indian mints were closed to
silver. the price Immediately fell all
over the world: and in September of
that same year. when Grover Cleveland
and his gold Democrats repealed the
Sherman act the price fell still lower
and has been gradually falling lower
and lower ever since. The Tribune
will not deny that. for it candidly says:
The law has unquestionably affected
the value of both metals indirectly by
creating an increasd demand for the
one. and by lcssening the demand f6..
the other"
Gold is therefore higher, and silver
lower. and legislation is mainly lc-
sponsible for 1t. because it has enlarge.
the demand for gold and lessened the
demand for silver.
Tho Tribune declares that it fayors an
of its Republican contemporaries do
They favor the continuance of the exist
ing gold standard. and only smile at the
international bimetalism. Very few
efforts of Mr.. McKinley's ENJOYS
to bring about an International
agreement on the silver question. The
United States can adopt bmetallism.
and will do so when the present admin
istration is ousted from power. The
country will not rest contented unit,
both debtor and creditor have an honest
dollar as a true standard of value. The
purchasing power of the gold dollar is
increasing. and will continue to in
crease as time goes ON. The govern
ment may declare that so many grains
of the yellow metal shall constitute a
dollar. but it has no power to regulate
its purchasing power. that depending
altogether on the law of supply and de-
mand. When one of the precious metals
is deprived of it's monetary functions by
excluding it from coinage, and the other
is doing the duty of both metals, with
an increased demand it will undoubt-
eddy enhance in value and cause all
commodities exchanged for 1t to fail IN
price.
Some gold organs assert that gold Is
cheaper now than 1t used to be, for the
interest to the borrower is lower. If