The broad ax., 1898-02-26
A LIVE ISSUE

nearly four-ffths OF the silver Of
the world, and he argues that
through The medium of a pam
American agreement, We can regu-
late the price OF the metal so as to
restore It's actual parity at Is to |
OF any other ratio we may see 6t
70 adopt.
An important feature IN Mr..
NeWlands's scheme is the substitu-
ton in all American countries OF
real money for representative
money. He quotes from the mint
directors report for 1895 to show
that the uncovered paper money is
As follows:
The United States slla zoe, 900
G cenltsi American states sSSSO
South American states S0,OU00oO
Total seas, 10000
He then adds:
''We have then nearly $1,000
000,00 of representative money
for which We can substitute metal
lie money, both gold and silver,
and we could so regulate the coin.
age of both as to maintain their
parity. Why should not the
Americans absorb in coinage all of
the $50, 900, 900 of gold and and
all of the Sl44 900 900 of silver
which they producer At this rate
it would take four or FIVE years
before all the uncovered paper
money would be retired, even
though none of the gold and silver
were absorbed in the arts, and this
demand leaves out of circulation
entirely the necessity for increasing
the money volume in proportion to
population or business. Would
this be imitation? Would this be
expansion
cit may be said that with this
stimulation of use production might
be stimulated. Ny answer is that
the American countries can easily
limit production if they wish. But
before entering upon the question
of limiting production / would
like to say a few words as to the
necessity for It."
Mr.. Newlands does not believe
there is any danger Of an over
production of money metals here
or elsewhere, holding that the de-
mand for purposes of retiring un.
covered paper and for meeting the
requirements of increasing CON-
merce and population viii more
than keep pace with the supply.
He shows, however, that the United
States, Bolivia and Mexico, acting
in concert, can limit production to
any needed extent.
"Now as to the question of lin
ting production, we all know that
of old each government had
monopoly of the gold and silver
found within its realms. The
scarcity of production led to the
various governments offering SUBJ
stantially premium for It's pro-
duction by making free grants of
mines when discovered, and so the
custom has existed in the United
States and Mexico of granting
freely to the prOspectors the mines
which they discovered The result
has been, therefore, to subject
these miners to the exploitation of
tremendous energy and enterprise,
and has produced a food of silver
where formerly there was a drouth.
II, therefore, the reason for max
ing free grants of mines no longer
exists why should these free grants
be continued Undoubtedly the
mines of the present, which have
been already granted BY the gov
ernments, are private property and
must be free from government APP
preparation, but they will soon be
exhausted, and even as to their
product the government has per-
feet right to insist upon seignior-
age in return for the privilege Of
mintage, torit is the stamp of the
government which creates the de-
mand that gives their product
valve, and It is q mere question of |
POLICY on the part of the govern
ment as to whether or not il will
,Sxact a seigniorage. Should it be
aSemed wise to limit the produc-
ton Of the existing mines il can be !
accomplished By exacting a seig-
niorsge, greater or less, accord |
ing to existing requirements. |
Bat these mines viii all be ex-
hausted proba5ly in the next Eve
easra The poVarnune,,f aune ~