Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1899-07-12
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COlIcSDULucul dShS US " SNliuih
how the silver would get into circula-
ton if 1t were coined without limita-
ton. The underlying thought with
those who ask this question seems to
be that inasmuch as there Is large
amount of money lying Idle now there
is no occasion to provide for any more.
That idea carried to its logical conclu-
stoh would also require the minis to he
closed to gold, for 1t is Il well-known
fact that but very small proportion
of the gold now In the country Is In
actual circulation. Hence, we might
Inquire. why coin any moreY New
ertheless, n proposition to stop coming
1t would bring Il storm of protest at
once. The fact is that whether coun-
try has much money or little there Is
always some of it lying idle. In India
and China. where the money In actual
use is very scarce, there are vast sums
boarded away. And, strange as 1t may
appear at first glance, it is nevertheless
true, that where the supply of money
is insufficient to keep pace with the
wants of trade the amount unemployed
will be larger in proportion than where
the supply is ample.
A very little intelligent thought will
disclose the reason. When the money
supply is diminishing, either actually
or relatively, it means lower prices for
products. Lower prices mean smaller
profits, no profits at all, or actual loss.
Hence people having money will not In
vest In productive enterprises. They
will buy gilt-edged securities, employ
1t in purely speculative ventures in
stock exchanges and boards Of trade,
or If conditions become too bad they
will lock 1t up for safe keeping. These
are the conditions which now exist in
the United States. For many years,
ever since the demonstration of silver
In 1873, business has been done on
falling market, and more and more
money has been Withdrawn from actual
employment. Now for the effect of
free coinage upon the circulation. The
first effect of opening the American
mint would be to raise the gold price
of silver to $1.29 per ounce. Leaving
out of consideration the question of
whether parity could be permanently
maintained. 1t is perfectly plain that in
the first instance silver would go up to
the mint rate in gold for the simple
reason that no man in his sane mind
would take any less for it. The Sec
ondary, almost coincident, effect would
be to raise the prices of all those prod
ucts such as wheat, cotton and pc
troleum that are sold in the European
market at silver prices. This means
corresponding rise in the American
market, to be closely followed, as is
always the case, by sympathetic rise
in the prices of other things of SIM
liar eli. 'acter and occupying common
field, rs, for example, a general rise of
wheat would undoubtedly be accom-.
panied by rise of corn, rye, barley,
buckwheat, etc. So the price Of cotton
has its effect upon the price of wool.
If the price of cotton goods takes n
sharp and long continued decline 1t is
Inevitable that wooden goods will fol-
low. more or less closely, because cot
ton goods and wooden goods in meas
ure compete with each other. So do
great many other things, and subject,
of course, to exceptional influences,
there is general tendency of all prices
to rise and fall together.
So the mere rise in the market price
of silver bullion consequent upon the
opening of the American mint would
give general upward movement to
prices, and especially to the prices Of
our great agricultural staples. This
would necessarily bring out for invest
ment large sums of money now lying
idle, for investors always seek a rising
market. Again, the silver deposited at
the mints would be struck into coin
and the coin handed to the owner, who
in turn would pay it out to others with
whom he has business. Thus 1t would
find its way into general circulation,
swell the volume of money, stimulating
prices and business at the same time.
There is never any trouble about get
ting money into circulation when bust
ness conditions are healthful, and an
abundant supply of good money is al
ways productive Of healthful condi-
tons One thing should be entirely
clear. If silver cannot be coined 1t ia
utterly impossible for it to get into cir
culation. If 1t can be coined there ia
certainly chance for 1t to find its way
into the channels of trade. Let lis give
1t that chance. If 1t do not circulate
1t will at least do no harm, while II 1t
do circulate 1t will be productive of
great good. 1t is strange what n prom
lnent place the negative has in the
goldite's discussion of the money cues.
ton. Colby meets almost every argu.
ment in favor Of the coinage of silver
either by n trade of abuse or by con.
jugation of the verb "can't:'
First person. can't.
Second person-You can't.
Third person-He, she or 1t can't.
Plural:
First person-We can't.
Second person-You can't.
Third Personal---very. can't.
Suppose we lay aside "can'ts" for n
while and substitute few "trys."-
Exchange.