Hutchinson gazette., 1897-08-19
WHY SILVER GOES DOWN
THE GOLD ORGANS SEE BUT ONE
SIDE OF THE QUESTION.
Ifthe Closing OF Japan's Mints to silver
Decrease the Price OfsLlv r., Win Not
the Op ming Of the Unltee States Mints
Increase 1t?

Every time mint closes to silver OF
a country limits the use of the metal
as money, down goes the price. Japan,
which is certainly not more than a
third-class nation in financial and in
dustrial strength, shifts from silver to
the gold standard and in a month or
two silver drops seven or eight cents
an ounce, and is still going down. The
closing of the East Indian mint to sill.
yer in 1893 caused it to drop nineteen
cents an ounce in three or four days.
And yet the gold men continue to ar
que the silver question npon the theory
that the opening of the American mint
would have no effect whatever upon
the value of silver.
But for unadulterated "rot" com
mend us to tho following from the
London Globe:
San augmentation of the worlds
gold yield could not fail to increase the
value of silver. When California and
Australia poured their auriferous riches
into the market, silver, like all other
commodities, acquired an enhanced
value. But the United states then had
no accumulations of the white metal
whereas now these have become SC
enormous that silver sales can only be
effected at sacrifice.
"This weeks collapse would have
happened some time back but for the
con tinuous purchases on japanese ac-
count That demand has ceased, and
China and India are supplied. What
steps ;he American silverites will pro-
pose to counteract this disastrous state
of things remains to be seen. Theil
attitude is specific threat to tampel
with the currency
This utterance shows either blank
ignorance or gross dishonesty.
1t is very true that an augmentation
Of the worlds gold yield, if sufficiently
great, would make gold cheaper and
raise the price of everything which
gold measures, silver included, because
silver is now essentially a commodity
the same as iron. But it is absolutely
untrue that that the gold discoveries
Of California and Australia enhanced
the value of silver. On the contrary
they cheapened silver just as gold it.
self was cheapened. Why? Because
silver was then potentially, ard in fact
money" Every ounce of it could be
coined at the ratio of 15L to l. Gold
and silver thus linked together consti
tuted the worlds supply of metallic
money When great quantities o
gold were discovered, it largely increas
I'd the stock of money, and every unit
Of that money, whether of gold orsilver
became cheaper. Gold prices rose
about 20 per cent, but silver prices rose
the same. 1t made no Difference in
which metal the prices were rated.
But" says the Globe, "the United
States then had no accumulation of the
white metat, while now they are 81
enormous that sales can only be effect
at a sacrifice" AS, during the former
period, silver did not rise but fell, al
though there were no Accommodations
Of it, the application of the Globes lat
ter statement is not clear 1t is, of
course, endeavoring to convey the idea
that silver will continue to fall even
though there should be n largely in
creased production of gold.
This is possible. If the silver cannot
be used, of course it will not be worth
much. A metal that can only be en-
ployed as commodity, cannot be ex-
pected to maintain its value by the
side of metal that can be used both
as commodity and as money.
If silver continues to fall it will not
be by reason of enormous accumu!a.
tions," but because its most important
use has been taken away. Gold will
probably not come down any, for the
simple reason that its production is not
likely to increase as rapidly as the de-
mand for it.
The Globe admits that the recent
collapse of silver is owing to the fact
that the japanese demand has been
taken away.
1t is most singular thing that talk
ing away the Japanese demand will
lower the value of silver, while restor-
Ing the American demand" for it,
WEIGH is many fold greater, will not
raise it any. Yet such appears to be
the Globes view, for it assumes that as
silver is as cheap now, it will remain
cheap after we have remonetized it.
That is what it means when it speaks
of "tampering with the currency"
Suppose Japan should now take steps
TO restore silverl Would thatibe tam
pering with the currency? Yes, ac-
cording to the Globe, but no upon every
principle of common sense and common
honesty. National Bimetallist.