Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1900-08-09
The Monetary Problem.

OF March ID. as e q large
increase in bank currency.
Consequently the total amount of
such uncovered or credit money in
the world indicates the existing
shortage of metallic money. We
know that there is in existence in
the world at the present time, ac-
cording to the last report of the sec
rotary of the treasury, 1856, SOC, 600
of such uncovered or credit money.
With such an enormous shortage in
the precious metals. you can readily
see that a powerful nation would nave
much greater influence in establish
ing their parity of value than If there
was an abundance or an o~versupply
of the same.
1t is conceded on all sides that IL
the United States can make a greater
demand upon silver than there is
silver available for coinage in the
world, the parity of value between
the metals will be established. In
other words, if we can make a great
err demand at the mint rate than
there is silver to supply that de-
mand, then the mint rate will be
established. The question, then,
must be determined by the great
ness of the demand which h United
States can create for that metal.
It was estimated by the secretary
of the treasury, Mr.. Gage, in his
statement of March 1, 1900, that there
existed in the United States $1,025,-
s25,162 of gold coin-an enormous
amount. What effect would the
withdrawal of that gold coin from
the United States produce? There
would be instantly created thereby
a demand for 81. 025 10000 of silver
coin or silver certificates to take its
place. From where would the sup
ply of silver come to satisfy such an
enormous demand? You must re-
member, what is conceded. that IL the
demand which the government can
make is greater than he supply, 1T
win establish the parity of the metals
in value.
There are but tour sources from
which it is possible that any silver
can come. The first source is from
silver bullion; no man can point to
where any considerable quantity IL
located. From the arts? The cost
of skilled workmanship upon the sill
yer articles adds such value to the
articles as makes them worth more
than the coinage value of the silver
contained therein. From Europe?
The holder of European coins tina
are circulating upon a gold valuation
could gain nothing by having them
stamped at our mints. In fact. he
would lose enormously by the trans
action. From silver standard
tries? Is it possible that those silver
standard countries, with a shortage
of circulating medium now, would be
willing to part with hat circulating
medium in order to food h United
States with silver? The supply of
silver in each nation is no more than
it's requires, and hence
there is no great amount in a
world available for coinage. /
Great as the government is, there is
something still greater, and that 10
the people of the United States. We
are the greatest people on earth. We
are the greatest producers and con-
sumers on the face of the globe. Our
"a, OO0, 600 people are equal to 100000
600 of the average of the balance Of
the world. It is strange. but never
theless true, hat many Americans DO
not appreciate the great power and
wealth of this country, and it is re-
markable that in order to prove our
high position among tne nations we
have to quote from foreign authori-
ties. Mr.. Mulhall, an eminent statis-
tician of England, a few years ago,
in an article in the North American
Review, made the startling statement,
that in power and effective force the
United States was nearly equal to
Great Britain, France and Germany
combined. He said: eff we take a
survey IF mankind in ancient or mod
ern times as regards the physical, me-
chanical and intellectual forces of ma
tons, we find nothing to compare with
the United States"
In determining VIII: : powerful eff
feet such a nation as the United
States would have in establishing the
parity of the metals you must take
into consideration the pivotal position
which it occupies as to the monetary
systems of the world. The silver
standard nations, which make their
demands upon silver alone for cur
rency. constitute one-foCrth of the
nations of the world in commercial
Importance The world il then d.
vided into nations, one-fourth of
which are on the silver standard and
three-fourths of which are upon the
gold standard. Even this is stating
it very strongly in favor of the gold
standard nations, as many are upon
an irredeemable paper currency and
have the gold standard only in name,
| and most of them ave large quanti-
| ties of silver, which they still treat as
basic money, IN thereby relieve the
| stroin o gold.
It must be remembered that when
YOU elevate silver to the value of gold,
you do not have to elevate the silver
that is contained in our own currency,
as hat is already upon a gold valua-
ton. You do not have TO elevate the
| great mass of silver coins in Europe,
because they are upon a gold yalua-
ton. You do not have to elevate the
silver in the arts, because hat silver,
by reason of the cost of workmanship,
is now worth more than the coinage
value of silver. The only silver In the
world that must be elevated in price
is simply the quantity of silver in the
| si-lver-standard countries, which those
nations wl.4 assist in elevating by
their own increasing demands upon it
as primary money.