Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1899-03-15
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Variations of ratio.


the worlds history; but such variations
have usually been slow, and have &C.
cured at periods widely separated.
Max Mueller has shown that for cen
turtles, and extending back beyond
written history, the ratio ut which gold
and silver was used as money in Egypt,
IN Babylon and in India, was from 1874
to 14h. There was never any such dis
turbance in the value Of the two metals
IN ancient or modern times rs has
taken place in recent years, for the rea.
son that no such disturbing cause eves
operated before as the legal debarmens
of one of them from monetary use and
Il corresponding extension of the use OF
the other. Such cause would Mt any
time necessarily produce great disturb
ance in their relative value.
The relative value of the metals at all
times must be determined by the sum
of the demands upon each, as compar-
ed with the supply of each. But the
chief source of demand is for money
and. consequently, the chief source of
value for both gold and silver has been
for money. 1t is impossible that the
value of either should be the same with
the demand limited to the arts as it
would be with demand for money add
I'd to the demand for the arts; and, as
there never was time since gold and
silver came into use rs money when
the demand for money was not the
dominant demand, it follows that there
never was Il time when there was Il
the money ratio. AS the value of each
metal Mt all times depends upon the
demand for it for all uses, acting upon
Il given supply, the ratio of one to the
other depends necessarily upon the rel
alive demand for each. Whether one
OF both metals shall be admitted to use
rs money is Il matter of law, and hence
the demand for them for money is n
demand created by law, whether statu-
tory or derived from custom.
If, then, both metals can by law be
endowed alike with the money func-
ton, so that either could be substituted
for the other in all money transactions,
the coming ratio at once becomes the
commercial ratio. 1t is the money ra-
ito, under conditions of free coinage,
that makes the commercial ratio and
not the commercial ratio that deter
mines the money ratio; hence. there is
no insurmountable difficulty in the way
Of having money standard of two
metals, leaving the supply to depend on
the same general law that would
govern the supply of one, if one alone
We're used. Indeed, the experience of
ages in the use OF both metals MS stand
ard money ought TO be enough to settle
that question as practicable one. The
question, then, of the desirablity of q
standard composed Of two metals be-
comes largely one of money supply.
Currency of Banks.
All forms of currency to the extent
that they receive free acceptance and
general circulation by the people of
nation are factors in determining price
levels in such country But the issues
of banks and bank credits, so far as
they do money work and thereby tenn
porarily advance or uphold prices, are
influences in the business
world. They constitute an unfailing
source of panics, and are the origin of
great disturbances in the commercial
world, always resulting in wrecking
the fortunes of those engaged in legiti-
mate industrial pursuits, and enriching
the classes that deal exclusively in
and money futures, such as
and bonds.
In the domain of commerce the con-
trolling factor is price levels. Money
always seeks the market where prices
are lowest. Commodities with equal
certainty seek the market where prices
are highest. The instinct of gain COM
pels this movement with a regularity as
unerring as the magnetic needle points
to the pole Of the earth.
The precious metals distribute them
selves among the nations and people
Of the earth, automatically, through
the movements of commodities to such
markets rs will afford the vendors the
largest return. Under the operation of
this law each nation is said to receive
its distributive share of the gold and
silver of the world. Each nation's
share can only be just sufficient to price
its products ut n point that does not
admit of similar products from other
nations being brought into its markets
and sold ut Il profit, because when this
can be done such nation will be COM
PEELED to yield up its gold and silver u1l-
til prices are reduced to Il point that
will no longer yield Il profit TO outsid-
crs. While prices remain at this point
the nation can retain its gold and sill
yer, having only its distributive share.
it will be seen that any form
of currency receiving free acceptance
and general circulation and operating
to advance prices that is not legal
tender the free acceptance and general
of which depend upon con-
vertibility upon demand into legal ten
der money, is Il delusion and snare.
Such currency aids in making level
of prices, but it is absolutely powcrless
10 sustain tnc Drice-ieNei aItef IL IS
made.
Silver Night school Leaflets.
Campaign workers will find nothing
better for explaining the 16 to Ques-
ton that the silver night school leaflets.
The cause of low prices. the misery and
suffering which has followed among
workingmen, the foreclosures of houses
and business failures, all are shown
step by step. by the familiar rules of
the common school arithmetics No
campaign worker should be without
number of these leaflets to be used in
his meetings.
AN Alderman's Value.
An Alderman in a Western city of
about three thousand inhabitants, hav-
ing made arrangements to remove to
another city. resigned his office.
Such n thing as the resignation of an
Alderman was entirely new i'll the his
tory of the place, and at the next meet
ing of the City Council one of the hon