The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-09-07

because both the demand ana supply are
more limited than the demand for or
supply of grain; but without consider
ing the effect of speculation, both legis-
| lation and circumstances have tended to
lessen the price of silver.
| The action of Japan has lessened the
demand for silver, and the United States
has not yet made sufficient progress to-
wards international bimetaalism to
strengthen the market Added to this
the short wheat crop in silver-using
countries has lessened the demand for
for silver for the purchase of wheat.
| WHEAT AND SILVER HAVE
PARTED COMPANY.
| For many years the price of wheat
kept company with the price of silver.
| | do not mean to say that the fluctua-
tons were always simultaneous, but they
were measurably so. This relation be-
tween silver and wheat was commented
upon by Mr. Rusk, Secretary of Agri-
culture. In his report of 1890. page 8.
| he said: 1.-The recent legislation look
| ing to the restoration of the bimetallic
standard of our currency, and the conse-
auent enhancement of the value Of sill
yer, has unqestionably advanced the
price of wheat in Russia and India. and
| in the same degree reduced their power
of competition. English gold was
formerly exchanged for cheap silver, and
wheat purchased with the cheaper metal
was sold in Great Britain for gold. Much
of this advantage is lost by the appre-
| citation of silver in those countries. 1t
is reasonable, therefore, to expect much
higher prices for wheat than have been
received in recent years"
The above quotation explains why
wheat and silver kept together. and also
supports the proposition that legislation
can raise the price of silver by increas-
ing fine demand for it. When Mr.. Rusk
made this comment India had free coin
age. and. the whea t-growers of the
United States had to meet the COMPETE
ton by reducing the price of wheat as
the price of silver fell.
WHY SILVER COUNTRIES UN-
DERSELL US.
In 1893 free coinage was suspended
|
could no longer have their silver con-
verted into rupees. The Indian govern
ment, however, according to the report
issued by the Director Of the United
States Mint in 1894, undertook to furn-
ish fifteen rupees in exchange for one
pound sterling gold. This fixed the
ratio at about "a to /, and gives the
Indian farn,or adyapta 90 'nf a hout IN
per cent over the American farmer
The fact that silver and wheat have
parted company will cause no dismay
to those who understand that the law
of supply and demand regulates the
price of both. 1t is the contention of
bimetallists that the opening of our
minis to the free and unlimited coinage
of silver at the ratio of 16 to l will
fix a mint price for silver, just as the
mint price is now fixed for gold. They
further contend that the demand thus
created by law will be sufficient to util-
ize all the silver presented and thus the
bullion value will be raised to the coin
age value.
Some of our opponents have insisted
that silver at $1.29 an ounce would
make the silver dollar as hard to obtain
as the gold dollar is now, but they ig-
more the fact that an increased volume
Of standard money will lessen the pur-
chasing power Of dollar, whether it be
of silver or gold, and thus restore prices
to the bimetallic level.
WHAT HAVE THE REPUBLICANS
DONE?
What has the Republican party done
to bring prosperity to the American peO-
pie? 1t cannot be said that the mere
election Of a Republican President upon
Republican platform brings prosperity,
because business failures and bank fail
ures increased after the election. In
ternational bimetallism cannot bring
prosperity until an international agree
ment becomes more probable than it is
now.
Since the Republicans have contented
themselves, for the present, with legis-
lation on the tariff question, they must
look to the tariff law and to that alone
for such aid as political action can
give.
any good which it brings, and justly re-
sponsiblc for any injury which it in
fiicts.
The opponents Of the Dingley bill de-
scribed it's principal features when they
called it Legislation of the trusts, by
the trusts and for the trusts" That the
beneticiaries Of such a law will rejoice
is to be expected, but can the Republican
party show that the law has brought or
can bring advantage to the people in
general?
Nothing can better disclose the weak
ness of the Republican position than the
joN manifested by Republicans over
events for which their Administration
and their politics are in no way re-
sponsible.
w. J. BRYAN.