Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1898-01-07
COST OF SILVER BULLION.

states for the purpose OF helplng 10 XIII
it again. He imagines that he has
dealt it terrific blow in demonstrate
ing Ito his own satisfaction that two
of the best silver mines in the world
have been able to produce silver at
cost of from 25 to As cents an ounce.
He does not attempt to give the cost OF
production by the multitude Of other
and less profitable mines in the world.
In fact, he says: "There is no method
of determining what are the conditions
in other mines in this country" and
again: at is impossible for private
person to get the data necessary to the
solution of this problem, either in re-
gard to the great mines of Mexico,
South America or any other silver-pro-
ducing country, except New South
Wales"
He acknowledges that he knows
nothing of the thousands of sources OF
silver production, except of two mines,
one in the United States, and one in
New South Wales. His evident inten-
tion is to start the cry of low cost OF
producing silver bullion. He Is more
than willing that this sophistry should
be used as bludgeon in the hands OF
the gold standard men. Not word
does he say about the silver mines that
are closed because the price of silver is
below the cost of production; not a
word about the mines that bankrupted
themselves producing silver at great
loss in hopes that the price would i'm
prove.
His estimate is worth about as much
as would be an estimate on the average
cost of raising wheat based on the
largest acre yield in state. The av-
erage yield of corn per acre last year
was 1872 bushels. Yet man In llli-
nois this last season raised 166 bushels
/ on an acre. Figured on the latter
yield, the cost per bushel of raising
corn would have been very small, and
every farmer could have made profit
on 10-cent corn. But the absurdity OF
both estimates is apparent.
But after all, the cost OF producing
a thing has no bearing whatever on
its market value. This is regulated en-
tirely by the quantity obtainable and
by its use. We call this principle 1.-The
law of supply and demand" 1t really
makes no difference whether silver
costs rs cents an ounce or nothing. Its
value will depend on its quantity and
use.
Mr.. Atkinson seems to be figuring
out that silver is cheaper than twenty
five years ago because it can be pro-
duced at less cost. Apply the same rule
to gold; gold can be produced at less
cost than it could be twenty-five years
ago, and, according to the reasoning Of
Mr.. Atkinson, should be worth less II
the products of the world But gold Is
more valuable than ever.
That cost of production does not reg.
ulate price is shown by many articles
of commerce. Ambergris is very val
liable substance, single Jumps OF it be-
ing sold for fortunes. Yet it is largely
a find. 1t is valuable as it Is scarce
II it were priced according to its cost
it would sell for about nothing. The
writings of some men have high mar
ket value simply because there is
demand for them that exhausts thu
supply. And that is all there is to the
silver question. Allow 1t its legitimate
use and the demand will exhaust thu
supply. Pass law prohibiting any
certain newspaper from using tint
mails, and see whether you cannot leg
islate value out of anything. You hav'
not lessened the cost of producing thu
newspaper, but you have interferef
with it's use and lessened the value O
it as a property.
This latest attack on silver by Mr.
Atkinson is puerile. 1t is all based OF
the assumed lessened cost OF produc
ing silver. His argument applies equal
" as we'll to gold as to silver.
If the low price Of silver were due u
the low cost of production, then tn
value Of gold would have fallen in tn
same proportion, due to low cost o
producing gold, and both metals woult
still, be near their old par OF IL to
That silver has fallen in value and golt
risen nroyes the fallacy OF Mr.. Atkin
sons argument.-H. F. Thurston.
The Nineteenth Century.
} This is the nineteenth century. w
live in America, "the land of the fret
!. and the home of the brave" so-called