The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-10
AN ABSURD IDEA.

The local organ of free-silver coinage at
the obsolete ratio of 16 to l admits that
the present commercial ratio of silver to
gold is 80 to l, but says that is just where
the trouble lies. 1t declares that value has
been legislated out of silver and into gold,
che effect of our coinage having been to
make silver less valuable and gold more
Continuing, it says:
The Journal says that Jefferson was in
favor of making the monetary ratio the
same as the commercial ratio OF course
he was. AT the time when the government
was formed legislation had not as yet dis
criminated in favor of gold, and the two
metals stood on their true merits in the
markets of the world The rehabilitation of
silver as real money woul1 at once alter
the relative demand for the TWO metals and
the commercial ratio would necessarily re-
turn 10 where 1t was prior to the enactment
of gold legislation. The ratio of SO to / is
due TO law and not to natural conditions.
Take away the law and natural conditions
would again regulate the ratio. AS there is
practically sixteen times as much silver
in the world as gold, and granting that they
both possess the same utility money,
the natural law of supply and demand
would produce the ratio of 10 to l.
This doctrine was promulgated by Bryan
in many of his speeches during the last
campaign. He asserted over and over again
that the decline in the price of silver was
due to the fact that it had been demone-
tized, and that if restored to its former
place as standard money it would at once
begin to appreciate and would continue to
do SO until it reached the old ratio of 16
to 1. THE ratio of SO to L. says the Bryan
organ, us due to law and not to natural
conditions. Take away the law and natur-
al conditions would again regulate the ra-
to-" 1t would be difficult to conceive any
thing more illogical and absurd than this.
1t shows how completely the free-silver
Democracy of the present day has faced
about since Jeffersons time jefferson held
that the commercial ratio between the met
ais was the starting point in any attempt
to fix their coinage ratio and that, the
commercial ratio being ascertained, the le
gal ratio should be made to conform to it.
1t never entered his mind that legal ratio
could be maintained different from the COM
mercial ratio that the latter was in any
way dependent on the former on any leg
islative enactment Now we find party
calling itself Democratic and even claiming
political descent from Jefferson insisting
that there is no such thing as a commercial
ratio between silver and gold, but that the
whole thing is regulated by legislation, IA
voring one or the other or putting both on
an equality. Jefferson held that the COM
mercial ratio is the whole thing; the Bry-
antics hold that the law is the whole thing.
They evidently think Jefferson lived a hun
dred years too soon to know much.
1t is asserted that the rehabilitation of
silver as real money would at once alter
the relative demands for the two metals,
and the commercial ratio would necessarily
return to where it was prior to the enact
ment of gold legislation. This implies
that the demand for and consumption of
silver have decreased since it's so-called de-
monetization. This is not the case Since
1873 the net increase of the silver circulation
of the world has been $2,49S 900. The
worlds stock of silver coin is 100 per cent.
greater now than it was in 1873, yet, in the
face of this immensely increased consump-
tion the price of silver has continued to
fall. The claim that the fall in price is
due to legislation has no more foundation
than the claim that the price of wheat is
dependent on that of silver. The latter has
been exploded and the former has no foun-
daton in reason or experience. Concur
rent legislation by all the governments in
the world could not restore silver to the
commercial ratio of Il to l.