The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1899-06-30

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gold and silver, demanding gold alone.
AS there has been no corresponding
increase of gold production, a rise in the
value of that metal was inevitable, I'M
less 1t is to be claimed that for some
incomprehensible reason gold is indie
pendent of the great law of supply and
demand No intelligent person who
thinks just a little will ever urge any,
thing so preposterous as that.
Thus we see that while nothing has
occurred with reference to commodities
that tended to lower their value, some
thing of a most unusual character has
happened. peculiarly affecting gold
that Is to say, the demand for it has
greatly increased. This is quite sufficient
to account for the decline in gold
pieces, and it is obvious that the chang
ed relations between gold and goods
have been produced by causes affecting
the gold. From what has been said, it
should be clear that the so called cheap
ness of silver is in reality a dearness of
gold. In the absolute sense it cannot
fairly be said that silver is any cheaper
than it formerly was. In silver standard
countries silver bullion and commodi-
ties have moved on nearly parallel lines
and exchange for each other in about
the same proportions as they did %
years ago. Although some 200, 600, 900
people formerly coming silver freely
have stopped doing so, nevertheless the
employment of the metal in the arts
and the larger demands of silver stand
ard countries have been sufficient to
keep 1t on a ''parity' with other kinds
of property, although it is deprecated
by comparison with gold. If. therefore,
Germany. the United States and the
Latin union had continued to coin sill,
yer 1t is absolutely certain that the two
metals would never have parted com
pany. 1t is true that the production of
silver has largely increased, but the in
crease has been less in proportion than
was that of gold between 1S4S and 1870.
AT that time both Germany and Austria
d%emonetized gold, but the open mints
of England, France and the United
States fully sustained it. and the parity
with silver was unbroken.
Leaving Germany out of considera-
ton, let us now look at the probable
effect Of keeping the American min,
open. On the 18th day of February,
1878, the coinage of the standard silver .
dollar was stopped. AT that time the
silver in the dollar was worth a small
fraction more than the gold in a gold
dollar. Had the American mint remain
ed open, it is not at all likely that those
of the Latin union would have closed.
This is evidenced by the fact that those
mints We're not closed down all at once.
When they found themselves being
crowded by bullion from tho mines and
the melted silver Of Germany besides, ,
they first limited their coinage to a GER
tain amount each year. A few months
later it was limited still more. Other
limitations were imposed from time to
time, but not until 1878 was the coin
age entirely suspended. This plainly in
Dictated an unwillingness to stop the
coinage of silver, and had the United
States mint remained open the Latin
union would have had strong support,
and it is very doubtful if it would have
limited silver coinage at all.
In this connection it must be under
stood that the chief disturbing element
at the time was the melted silver that
Germany was disposing of, 1t was not
known just how much Germany would
sell or how long the sales would con-
tinue, but plainly they could not be
kept up very long, and, as a matter Of
fact, they were stopped in 1879. Very
wild stories We're floating around con-
corning the fabulous richness of the
American silver mines, and when the
United States Joined in the warfare
upon the metal. its own product, it was
but natural that the countries of the
Latin union should take the alarm.
But suppose the mints of the Latin
union had been closed just as they were
and those of the United States had re-
manned openY What, then, would have
been the effect?
AS stated at the outset, no one is
justified in speaking ex cathedra on
such a question. But every reasonable
probability is in favor of the mainte-
nance Of silver on a substantial parity
with gold at the ratio of 16 to 1. That
is the holding of silver at about 81. 80
per ounce in gold. The United States
at that time contained over 40, 900, 900
people, and the population was in
creasing more than /, 600, 600 a year.
1t was a country of high prices, new
and undergoing development on a gi-
gantic scale. No other country in the
world approached it in capacity for the
absorption and use of money. In that
respect it was vastly greater than Ger
many, and free coinage in this country
would have far more than neutralized
the action of that empire. We had very
little metallic money at the time, and
81, 600, 600. 600 In silver could easily
have been taken into our currency
within the next ten years had 1t been
possible for US to get such an amount.
During that time the average annual
production was only about 800, 000, 600.
and of this India alone took an average
Of about $24. 600, 900 a year. At the
outside figure there would not have been
more than S4l, 600, 600 a year left for
III to absorb after all other countries
had been supplied. Probably $50, 00O,-
600 would ha We covered the amount.
That we could have taken $50, 900, coo
Or $40, 00O, 0CJ or $50, 600, coo will
scarcely be questioned by any one ia
miliar with the capacity Of the United
States.
With the American mint open, ready
to take the surplus and coin it at the
rate of &l.29 in gold, every other coun-
try and every individual must neces.
sarily have paid the same price. There
fore the conditions would have been
such that all other countries would