Arizona silver belt., 1897-09-02
THURSDAY. SEPTEMBER 2, 1897.
THE THEORY NOT DESTROYED

The divergence of wheat and silver has greatly elated the gold standard press, as they affect to see in it the complete overthrow of the theory Of bimetallists that the price of wheat moves in sympathy with the price of silver. That, however, is not fair statement of the contention of bi- metallists. They maintain that the general course of prices of all com modities has been downward since the characterization of silver in 1873. In support of this theory, wheat, being a staple article of export, has been oftener referred to than any other commodity. The price of cotton, of corn, or of any other article which the United States exports largely tends to confirm the theory with as much force as does the course of wheat. Our agricultural products furnish from 65 to 70 per cent of our total exports; therefore, the rise and fall of bread stuffs and other products of the soil seriously affect the prosperity of the whole country and to great extent control the prices of manufactures. It is admitted that supply and demand influence values the world over, which accounts for the fluctuations from year to year, but a study of the statistics of crops and prices during the past 20 years shows conclusiyely that the gen eral course of values during that period has been downward.
 The fact that we have dollar wheat this year in no way wcakens the theory. Next year the cereal may sell at 90 cents. In 1895 the average price was 49.1, and last year 50.9. In 1881, with small crop and active export de- mand, wheat averaged for the year S1.19.2, while the year following under the influence of an enormous crop and q light foreign demand the average price was but SS.2, and in only two years since QSs3 and 1883 has it aver eraged as high as 90 cents. Cotton in 1873 brought 1915 cents per pound, and its course since has been steadily downward, until last year the average price was 6.26 cents. Likewise the hay crop, one of our most important products, has depreciated more than third in value per ton since 1873. So it has been with almost all other products of the farm.
 Nor doee the heavy decline in the price of silver disturb the theory of the correlation between the price of silver and the value of commodities. It is possible to depress any commodity by removing the demand for it. Since England demonetized silver in 1916 her tremendous influence has been ex- erted to debase silver and elevate gold, with the result that all the na- tions which count for anything in the worlds commerce, if we except Mex ico, have adopted the gold standard. The consequence is therefore plain and inevitable-the demand for silver as money having been almost entirely destroyed and its use confined to the arts, its depreciation was inevitable.
 England's purpose in debasing silver is plain. She is the great creditor nation, holding against the balance of the world demand for Sl0, ,000,- 900, on which she is receiving S500,- 900, 900 annually in interest, and of this vast sum the United States has to pay S150, ,000,00 or more each year. By accomplishing the overthrow of silver England has enhanced the value of her holdings 50 per cent. Destroy half the money of the world and the value of what remains as money of ultimate redemption appreciates &C., cordingly. The more you bid for gold the more wheat, the more cotton and the more labor you must give for it, and consequently by adopting the gold standard the United States and other creditor nations have enriched the money lenders of England and Europe.
 It is no new theory, and it is one accepted by the best writers, that gen eral prices are determined by the volume of money, that all the money on one side and all the property offered for sale on the other arc reciprocally Q demand and supply of each other. If the money is doubled, prices will rise; if the volume of money is reduced one half, general prices will fall one-half. Particular prices will vary according to demand and supply, but the general range of prices will follow the general volume of money. This has always been the contention of the bimetallists, and monometallists have never been able to disprove it. While the United States will enjoy occasional seasons of prosperity, the history of events dur ing the past 25 years point unmis- takably to the mora frequent recur- renee of periods of violent commercial disturbance and gradual decline of