The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-03-17

gold and silver are consumed within
a short period after they are produced.
Either because they are perishable, or
because there is no advantage in ac-
cumulating them, they are quickly
consumed No great stock of them
| remains. Neither does the law confer
upon them any privilege or attribute
which renders it actually or expect
antly profitable to accumulate them.
The worlds stock OF breaistuffs,
meats, fruits, textiles, iron, copper,
paper, or any other commodity except
gold and silver, is probably not suf-
fcient for two years consumption.
Hence the values of these commodities
must conform more or less closely to
the cost of their production or re-
production; because unless the pro-
Queer was able or expected to be able
to cover the cost, he would soon cease
to produce. But with gold and silver
(as commodities) the circumstances
are entirely different. These SUB.
stances are imperishable. Therefore
there is nothing risked in keeping
them. The law confers upon them ex-
traOrdinary attributes and functions.
1t permits them to be fabricated, sub
stantially free of expense, into coins;
and upon such coins 1t cOnfers the
power to pay taxes and debts-in
word, the power of legal tender. 1t
also authorizes paper notes to be is
sued upon reserve" Of coins; and 90
renders the latter liable to be sudden
ly demanded in payment for the notes.
Here is a motive and reason for ac-
emulation. In period of panic the
value Of coins has risen %, so and
even 100 per cent in the course Of a
day. In point of fact the accumula-
ton Of coins has been very great. The
stock of coins in the CONNER cial world
a century ago barely exceeded 300
millions OF pounds sterling, or fifteen
hundred million dollars; It is now es-
timated at 1000 millions sterling.
With cumulative stock there can be
no conformity of value to cost of pro-
duction, seeing that every addition to
the stock must necessarily fall in
value as compared with the whole
stock. A century ago gold dollar
formed one tWelve-hundred .millionth
of the whole metallic measure Of val
ue. 1t took its value not from the
cost of production, but from such. pro-
portion. Today, gold dollar forms
but one six-thousand millio1th Of the
metallic measure of value and but one
twelve-thOusand millionth of the
whole measure Of value, if regarded as
consisting OF metal and paper notes
combined. 1t therefore fetches the
miner far less of other commodities
in exchange than 1t did before. Not
outstanding the enormous fall OF
prices since 1873, commodities and
services are far more costly today
than they were a century ago. Dol
lars are lower in value and commodi-
ties higher.
Does it pay to produce the precious
metals? This question has been an
swered by practical men in the mega
tive. On the whole it not OILY does
not pay, but it has ruined every coun-
try that prosecuted the industry. Why.
then, has gold continued to be pro-
duced? Because mining is gambling;
because gambling is fascinat ting; and
because the law has made it fascinat-
ing by opening the minis to the pur-
chase at fixed price measured in
themselves) of an illimitable quantity
OF the precious metals, which it then
gratuitously turns into Legal tender
money. If it did the same for wheat.
and wheat were indestructible. that.
too, would have to be produced. if 1t
were produced at all, at loss to the
producer. The evidence as to the un-
profitable character of gold and silver
is regarded as overwhelming; and I'M
I'll that evidence is invalidated 1t is
quite useless to insist upon the dogma
that the value of the precious metals
conforms In fact to the cost of their
production. 1t does nothing of the
sort. II conforms TO the dimensions
OF the whole stock in hand each frac-
ton of which has a tendency. when
not disturbed by such legislation as
that OF 1879. to fall in value or pur-
chasing power.
The law OF supply and demand Is as
little applicable to the precious metals
as that OF cost OF production. This
law holds that supply viii Always seek
10 conform 10 demand, and demand 10 |
supply. Quite correct "a Ia other eom-