Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-01-13

time, namely, that India and other sill.
yer standard countries enjoy 100 per
cent advantage by the difference in ex-
change over gold standard countries.
1t is out of the question for the farmers
OF the United States to produce on the
gold basis and successfully compete in
the Liverpool market with the Indian
farmer who produces on silver basis
The Indian farmer is enabled to under
sell the American farmer 100 per cent.
He produces on u silver basis aud sells
in Liverpool for gold, which gold
when taken to India can be converted
into silver and coined into double the
amount of the money of his own COZ n.
try with which he can pay his take
aud debts, and have a surplus profit
remaining; whereas the American far.
mer produces on the gold basis, sells at
the same price in gold ut which the
Indian farmer sells, and when he
brings his gold to America he finds
that the debt-pay ing power of his mon
ey is only half of that of the Indian
farmer.
After reviewing the findings of the
Royal Commission on gold and silver
of 1887, and weighing the whole evi.
dence adduced on both sides of the
question, the majority arrives at the
following conclusions:
If it be true that an increase of mon
ey raises prices, and diminutlon low
ers them-and we are not aware that
anyone disputes that proposition
then it seems to us that prices must to
some extent have been affected by the
changes which rsulted in the closing of
the minis to silver, and that prima
facie has been established in support
of that contention.
Neither do we think that the views
which have been urged upon US, with
regard to the effect of the divergence
of the metals, in the case of articles,
like wheat, for instance, which are
exchanged between gold and silver
using countries, have been successfully
disputed; and upon both these points
we are supported by their report, by
the unanimous opinion of the members
of the gold and silver commission, who
expressly refer to the disadvantage
under which the English grower of
wheat for the time is placed. as COM
pared with the Indian producers.
This is strong argument in favor OF
the contention that the demonetiza-
ton Of silver and the consequent d.
intuition of the circulating medium
are the direct causes of the fall in pri-
ces which began in 1873, when silver
was demonetized, and which contin-
ues up to the present time. Since 1873
there has been fall of at least fifty
per cent in the price of all commodi-
ties measured by gold. If the demon
citation of silver by the United States
and Europe caused the fall in prices,
as is amply shown by the reports and
conclusions of the Royal Commission,
it stands to reason that by taking
away the cause, by remonetizing silver
and giving it the same rights and priv
ileges which is enjoyed prior to 1873,
prices will again rise and become sta
BILE.
Nothing can be surer than that
like causes bring like effects. By de-
creasing the volume of money as was
done in 1873, prices have continually
fallen. By increasing the volume of
money through the reconciliation of
silver and reversing the ill-advised leg
islation which reduced the volume of
money, there will gradually be rising
prices of all commodities. When prices
are rising everybody is anxious to in
vest in property, but when prices are
failing everybody is reluctant ar afraid
to engage in new enterprises, because
on a failing market there is no assur-
anee of reasonable return of the
money invested, put on the contrary,
there is every danger that the money
so invested will be wholly lost. No
one will question the advantage to be
derived from rising prices incident to
an expansion Of the volume of money.
Free coinage of silver will enlarge the