People's Pilot, Volume 3, Number 10, Rensselaer, Jasper County, 25 August 1893 — WHY SILVER HAS DECLINED. [ARTICLE]

WHY SILVER HAS DECLINED.

Production Hail Little to l>o with the Slight Change* of Hatlo. Discussing the silver question with the Times, and replying to several questions propounded by that paper, the Kansas City Journal says: “The results of the purchase of silver bullion as a mere commodity prove nothiitfiT- The contention is whether coinage laws hold the two metals to relative steadiness in spite of the fluctuations in production. The Journal has shown that they do, and that since 187 S such coinage laws have not existed. “Production had nothing whatever to do with the slight changes in ratio in 1884 and 1837. These changes proceeded simply from an effort on the part of this government to make its ratio more nearly conformable to those of leading foreign countries. But it left its ratio about three per oent. higher than that of France—ls.93B to 1 here and 15JV to 1 in France—and therefore silver was worth a premium over gold to ship to Europe instead of coining it here, and this accounts for the small coinage in this country after 1887. The silver was coined, but not here. It afterwards returned to this country in large quantities for circulation. “When the ratio of 16 to 1 was adopted, the production of silver waa double that of gold—it has never been nearly that in recent years. “To the question: ‘Why, if tho coinage laws control the price of the metals, why should not the ratio be 10 to 1 or any other lower rate?’ we reply that for hundreds of years, the ripening judgment of mankind had valued these two metals for coinage purposes in the relation of between fifteen and sixteen parts of silver to one of gold. “With such ratio established as, in a sense, a natural basis, it remained unaffected ub against silver, by the excessive yield of silver to gold daring the first half of this century, being from two to four times greater, or as against gold during the next twenty years when the output of that metal was two and a-half times that of silver; and in 1873, when silver was demonetized, the French coinage value was the commercial value and silver was at a premium of three per cent in this country: and it was n6t until after the support of the law was withdrawn that silver began to part compauy with gold, “We believe in the indispensability of bimetallism—the ratio, within reasonably limits is of secondary importance. If freo coinage had not been interferred with the two metals would have remained steadfast to each other to this day at the old ratio. It is easier to tear down than to rebuild. It is an open question whether, under all the circumstances that exist, a change of ratio, say 20 to 1, might not be advisablei. Such a change, if proposed by th* friends of bimatallism in congress, will be considered from an entirely different point of view than that of demonetization. That is a question of detail only.”