Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1897-08-05
THE FALL or SILVER AND THE RISE
OF WHEAT.


dollar A cents. Nor is it likely the
decline will stop there. The director
of the mint, MIR. Preston, expects the
bullion value of the silver to decline to
about 30 cents within year. The rea-
son for the decline is, Of course, the
enormous production of silver in cx
cess of the demand. So Mr.. Preston
thinks, and there is no other explana-
ton, unless that be considered one
which is given by the free silver apos-
ties, tO-wit: that it is not silver which
has declined in value, but gold which
has appreciated because OF its scarcity.
But of late years the annual produc-
ton of gold has more than doubled.
and its output has been so great as to
largely exceed the coinage demand for
it. Hence it is not because OF the
scarcity and consequent appreciation
of gold that the price OF silver has de-
clined. It's decentralization or the re-
strictions put upon its use by the lead
ing commercial nations of the earth
have undoubtedly been one of the chief
causes of its decline, the other being a
constantly increasing supply in face OF
relatively narrowing market. The
recent action of Japan in adopting the
gold standard, the preliminary steps
which have been taken by Russia
looking to the same end, and the re-
strictions on the coinage OF the Indian
rupee, leave China the only big coun-
standard: and even China, it is said, is
preparing to abandon it. There are,
Of course, Mexico and a few other
minor governments hanging on the
skirts of civilization which still retain
the silver standard, but all of them
together afford only an insignificant
market for silver. In fact, by far the
best markets for silver now are the
gold standard countries. They find a
large use for it as subsidiary coinage,
but the demand for it for this purpose
falls far behind the excessive supply
from all parts OF the world. In spite
of the unprecedentedly low price OF
silver, the United States last year pro-
duced so, 600, 600 ounces-an increase of
100000 over the previous year-and
uct of Mexico. Australia and other sill
ver-producing countries. A consider
able part Of this increase is due to the
fact that silver is large by-product OF
lead and copper mines,
The recent sharp decline in the price
Of silver is said to have been inhuenc-
ed, in part, at least, by the news that
China also is preparing to adopt the
gold standard. This is one OF the
European improve nents which struck
the fancy OF Ii Hung Chang when he
made his tour through Europe and this
country not long ago. But it is very
doubtful whether any Influence Ii
Hung Chang could exercise, even
through imperial decree, could lift
China out of the ruts in which it's mon
ey customs have run for hundreds Of
years. However, there is no knowing
what may happen. 1t is substituting
modern iron-clads for its ancient wood
en- junks; it is building railroads; its
merchants have been quick to adop,
modern methods. 1t is barely possible
that it may drop the clumsy and an
tiquated silver standard for the
more modern machinery of trade, but
it is extremely doubtful.
While silver has been falling to 9
lower point than was ever known
wheat has been rising. Wheat on
Saturday was 20 cents higher than al
the same time last year. Silver was
about s cents lower. The fact is worth
| mentioning, because it shows how com
pletely events have refuted the chic
| arguments of the silverites-that the
price of wheat was governed by that OF
silver and that they always ran in par
| allel columns. 1t was, OF course, easy te
show that the statement was not true
but it so far correspondent with the
facts of recent seasons as to seen
plausible and to carry great weight
with multitudes of people. While that
campaign was in progress a sudder
and rapid rise in wheat while silver
was declining went far to dispel the
delusion that there was any connec
ton between the prices OF wheat and
silver. The silver men tried then tt
| neutralize the effect of this by starting
the story that the rise in wheat was
due to conspiracy OF the gold bugs il
order to help McKinley's election
But there is no election on hand thi!
year and the repetition of the same
| phenomenon in an even more pronounc
ed form--the rise of wheat side by side
with slump Of silver TO the lowes
price it ever reached-will prohabl,