Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1897-09-23
merchandise, how much greater wouIa
De the general benefit if the rise extend.
81 TO all agricultural products?

merchandise, how much greater -won,s
DC tne general benefit if the rise extend.
81 TO all agricultural products?
Political Eject of the Rise.
IN calculating the political effect Of
rise IN wheat it must be remembered
that many farmers were threatened with
foreclosure during the last campaign
ana that a considerable part of the
money received for wheat will he EN-
proved IN paying off mortgages Thus
intimidation will be somewhat restrict.
ed, but the demand for merchandise
VIII be less than it would be under Or
illnary circumstances. The reasons Civ
en- above for believing that bimetallists
VIII find encouragement rather than
encouragement in present conditions
are the same which have been given by
other advocates of bimetallism. Those
VINO advocate free coinage NAV be
wrong, but they agree upon the princi
pies which underlie the money uues
ton, and they are not likely to be fright
ened away from their position by events
which enforce their arguments.
The law Of supply and demand OK.
plains the fall in silver as well as the
rise in wheat To what extent the fall
in silver may have been accelerated by
speculation in silver bullion | cannot
say. 1t would be possible for the bears
to run the price of silver down to some
extent just as they sometimes lower
the price of grain, and it would be much
easier TO manipulate the silver market
because both the demand and supply
are more limited than the demand for
or supply Of grain; but, without consid-
ering the effect Of speculation, both leg.
islation 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 prog
ress toward international bimetallism
to strengthen the market. Added TO this
the short wheat crop in silver using
countries has lessened the demand 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 fuctua.
tions were always simultaneous, but
they were measurably so This relation
between silver and wheat was comment
ed upon by Mr.. Rusk, secretary Of ag-
riculture. In his report of 1890, page
s, he said: 1.-THE recent legislation look.
ing 20 the restoration of the bimetallic
standard of our currency, and the con-
sequent enhancement of the value of
silver. has mquestionably advanced the
price Of wheat in Russia and India and
in the same degree reduced their power
of competition. English gold was for
merly exchanged for cheap silver, and
wheat purchased with the cheaper met
al was sold in Great Britain for gold
Much of this advantage is lost by the
appreciation 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 al
so supports the proposition that legisla-
ton can raise the price of silver by in
creasing the demand for it. When Mr.
Rusk made this comment India had free
coinage, and the wheat growers of the
United States had to meet the competi-
ton by reducing the price of wheat as
the price of silver fell
why silver Countries Undersell Us.
In 1898 free coinage was suspended
in India. so that British purchasers
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 fur
nish is rupees in exchange for 81 (gold).
This fixed the ratio at about "a TO !
and gives the Indian farmer an advan-
tage of about 90 per cent over the
American farmer.
The fact that silver and wheat have
parted company will cause no dlsmay
10 those who understand that the law
If supply and demand regulates the
nrice of both. 1t is the contention OF
that the opening OF our
mints 10 the free and unlimited coinage |
If silver at the ratio of l6 to Will NIX
, mint price for silver, just as mint
,rice is now fixed for gold. They fur
her contend that the demand thus
by law will be sufficient to
utilize all the silver presented, and thus
he bullion value will be raised to the
coinage value.
some Of our opponents have insisted
hat silver at S1.29 an ounce would
make the silver dollar as hard to obtain
= the gold dollar is now, but they ig
,ore the fact that an increased volume
f standard money will lessen the pur-
,hasing power of dollar, whether II
i Of silver or gold, and thus restore
,rices to tho bimetallic level
what Have the Republicans Done9
What has the Republican party done
q bring prosperity to the American
,oonle2 II cannot be said that the mere
lection Of a Republican president upon a
platform brings prosperity
,ecause business failures and bank fali-