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The Commoner.
DECEMBER 11, 1903.
MR, BRYAN ON BIMETALLISM
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Mr. Bryan has written for the Encyclopedia
Americana, now being issued by the Americana
company of New York, an article on bimetallism.
This article gives in condensed form the prin
ciples involved in the discussion of the subject,
and will bo 'reproduced in The Commoner by
courtesy of the publishers. Papers quoting from
this article will please give credit to the Encyclo
pedia Americana. v
The second chapter Is presented in ihis is
sue and other chapters will be reproduced until
the entire article has been printed In The Com
moner: The advocates of bimetallism not only con
tend that the law of supply and demand regulates
the value of the dollar an increase in tho de
mand, the supply remaining the same, raising tho
purchasing power of tho dollar, and an increase
in tho supply, the aemand remaining the same,
decreasing the purchasing power of the dollar, but
they also believe that supply and demand regulate
the market price of the metals.
The contention of monometallists that it is
impossible" to fix a relation between two metals
is met with tho reply that the relation between
two things of limited production, such as gold
and silver, can be fixed by any nation or group
of nations whfch can furnish a use for so much of
both metals as is available for coinage. Gold
tmd silver differ from agricultural products in
that they must be found before they can be pro
duced. If gold and silver could be raised from
eed and cultivated practically without limit, as,
for instance, corn and wheat can bo, It would
be very difficult if not impossible to fix a relation
between them, but they 'are called precious metals
because they are scarce.
The demand created by the government must
be considered as added to the demand created by
tho arts. If the demand created by the govern
ment is sufficient to utilize tho surplus over and
above what the arts require, the commercial value
can be kept up to the coinage value for the rea
son that each owner will seek the highest possi
ble price, and so long as the government stands
ready to convert a given amount of metal into
a given amount of money, he will not have to dis
pose of the metal to any one else for less than
the government price. If the government, in
stead of standing ready to convert one metal into
money, stands ready to convert two metals Into
money, it can make, tho commercial ratio and
the coinago ratio identical, if thero is a use-for
tho money. Tho changos in relativo production
would not affect this condition so long as the gov
ernment was able to utilize all of tho surplus of
both metals.
Tho influence exerted by the legal ratio on
tho commercial ratio Is woll described by tho
royal commission of England, which in its report
of 1888 said: "Nor does it appear to us a priori
unreasonable to suppose that tho existence In tho
Latin union of a bimetallic system with a ratio of
15 to 1 fixed between tho two metals, should
have been capable of keeping tho market prlco
of silver steady at approximately that rate. Tho
view that it could only affect tho market prico to
tho extent to which thoro was a demand lor it
for currency purposes in the Latin union, or to
which it was actually taken to the mints of those
countries Is, we think, fallacious. Tho fact that
tho owner of silver could, in the last resort, take
it to those mints and have It converted into coin
which would purchase commodities, at tho ratio
of 15y2 of silver to 1 of gold, would, in our opin
ion, bo likely to affect the prico of silver in tho
market generally, whoever the purchaser and for
whatever country it was destined. It would en
able tho holder of tho silver to stand out for a
price approximating to tho legal ratio and would
tend to keep the market steady at about that
point."
Independent bimetallists and international bl
metallists agree as to tho. theoretical and practi
cal benefits of the double standard, but differ as
to the ability of tho United States to maintain
the parity alone, the former believing, and tho
latter denying, that under conditions as they now
exist our nation is able to utilize all the silver
that could come to our mint.
If our government offered to coin into money
at a fixed ratio every ounce of gold and silver
presented at the mint, the supply brought to
the mint would necessarily come from one of
three sources that is, from silver bullion already
in existence, from silver coin of other countries,
or from tho annual product of the mines.
As there is no considerable quantity of silver
hold in the form of bullion, thoro could be no ma
terial Incroaflc In our coinage from that source.
Whether sliver coin would come to our mint
from other countries would depend ontlroly upon
tho ratio. Tho foar that, under bimelnlllbin, our
country would bo flooded with tho coined silver
or tho world, Is entirely without foundation, for
tho reason that our ratio, 10 to 1, Is more favor
able to gold than tho ratio existing botwnon gold
and silver In tho nations that have a largo quan
tity of silver coin. Franco, for lnatanco, is tho
largest European holder of silver, but as her sli
ver now circulates on a parity with gold at a
ratio of 15 to 1, it could only come here at a
loss equivalent to about three cents on tho dollar.
Whether tho mines would furnish an exces
sive amount of silver Is a question nhout which
no one could speak positively, becauso no one
can foresee now discoveries or estimate the pos
sible exhaustion of mines now being worked,
Thero Is, however, nothing In tho past to justify
a fear of overproduction.
Raising tho government prlco of a prcciouB
metal docs not necessarily Increase the produc
tion of it, neither docs tho. lowering of tho price
necessarily reduco tho production. For instance,
the law of 1834 reduced the government prlco of
gold, and yet soon afterward thero was a wonder
ful increase in the production of gold. Tho dis
coveries of silver following 1870 wero not brought
about by an increaso In tho prlco of silver, and
for several years tho production of silver In
creased, even with a falling market. The mone
tary use of gold and silver Is the controlling uso.
If, by agreement among all tho nations, tho legal
tender function was withdrawn from both gold
and silver, and other money substituted for them,
both. would fall In value, just how much no ono
knows, because a fall In the prico of either of tho
metals would develop new uses and thus increase
the demand, which, In Its turn, would act with
tho supply In determining the ultimate price.
While it Is probable that a higher prlco for sil
ver bullion would cause the reopening of some
mines which have been abandoned becauso. of
the low prijo of silver, the production of silver
would not be likely to bo increased to any such
extent as has been Imagined.
(To Bo Continued.)
. THE PRESIDENT'S MESSAGE .
The president's message to congress was de
livered Monday, December 7. In the beginning,
tho president congratulated tho country "on the
amount of substantial achievement which has
marked the past year as regards our foreign and
as regards our domestic policy." He said that
"the country is especially to be congratulated on
what has beep, accomplished in the direction of
providing for the exercise of supervision over
the great corporations and combinations of' cor
porations engaged in interstate commerce." He
pointed to the creation of the department of com
merce and labor, including the bureau of corpora
tions; the enactment of a law providing for the
expediting of suits for the enforcement of the fed
eral anti-trust law, and the enactment of the law
providing for equal treatment of all producers in
the transportation of their goods, as showing
marked progress in dealing with the trust pro
blem. He said that the department of commerce
is not designed to restrict the fullest liberty of
-legitimate business action, but to secure authentic
information "which will aid the executive .in en
forcing existing laws and which will enable the
congress to enact additional legislation if any
should be- found necessary in order to prevent the
few from obtaining privileges in diminished op
portunities for tho many." He laid great stress
"upon the importance of publicity, and said that
honest corporations have nothing to fear from
supervision, and added that the purpose of the bu
reau of publicity is "to aid in bringing about a
better industrial condition a condition under
which there shall be obedience to Jaw and rec
ognition of public obligations by all corporations,
great or small." He said that congress, in enact
ing the laws enumerated, proceeded on "sane and
conservative lines;" that nothing revolutionary
was attempted, but "a common sense and success
ful effort was made in the direction of seeing
that corporations aro so handled as to subserve
the public good." He referred to this legislation
as being "moderate," and said it was 'character
ized throughout by tho idea that we were not at
tacking corporations, but endeavoring to provide
for doing away with any evil in them; that we
drew tho line against misconduct, not against
wealth; gladly recognizing the great good done by
the capitalist who alone or in conjunction with
his fellows, does his work along proper and leg
itimate lines." He said that the purpose of tho
legislation was "to favor such a man when ho
does well and to supervise his action only to pre
vent him from doing ill."
Referring to capital and labor, the president
said: "The consistent policy of the national
government so far as it has the power Is to hold
in check the unscrupulous man, whethci em
ployer or employe; but to refuse to weaken in
dividual initiative or to hamper or cramp the in
dustrial development of the country. Wo recog
nize that this Is an era of federation and com
bination in which great capitalistic corpoiations
and labor unions have become factors of tremend
ous importance in all industrial centers. Hearty
recognition is given the far-reaching beneficent
work which has been accomplished through both
corporations and unions and tho line as between
different corporations, as between different unions,
is drawn as it is between different individuals;
that is, it is drawn on conduct, the effort being
to treat both organized capital and organized la
bor alike asking only that the interests of each
shall be brought into harmony with the inter
ests of the general public,, the conduct of each
shall conform to the fundamental rules of obed
ience to law, of individual freedom and of Justice
and fair dealing towards all. Whenever either
corporation, labor union or individual disregards
the law or acts in a spirit of arbitrary and tyran
nous interference with the rights of others, whe
ther corporations or individuals, then, where tho
federal government has jurisdiction, it will see to
it that the misconduct is stopped, paying not the
slightest heed to the purpose or power of the
corporation, the union or the individual, but only
to the one vital fact that Is, the question whether
or not the conduct of the individual or aggregate
of individuals is in accordance with the law of
the land. Every man must be guaranteed his lib
erty and the right to do as ho likes with his
property or his labor so long as ho does not in
fringe on the rights of others. No man is above
tho law and no man Is below It; nor do wo ask
any man's permission when we require him to
obey it. Obedience to tho law is demanded as a
right, not asked as a favor. We have cause as a
nation to be thankful for tho steps that have
been so successfully taken to put these principles
into effect. Progress has been by evolution, not
by revolution. Nothing radical has been done;
the action has been both moderate and resolute,
therefore, tho work will stand. There shall bo
no backward step. If, In the working of the laws,
It proves desirable that thdy shall at any point
bo expanded or amplified, the amendment can bo
made if its desirability Is shown". Meanwhile,
they are being administered with judgment, but
with insistence upon obedience to them; and
which need has been emphasized in signal fashion
by the events of the past year."
Referring to government receipts and ex
penditures, tho president said that from all
sources, exclusive of the postal service, the re
ceipts of the government for the last fiscal year
aggregate $5G0,39G,674. The expenditures ior the
same period wero $500,099,007, tho surplus for tho
fiscal year being ?54,297,GG7. He added that "the
indications aro that the surplus for the present
fiscal year will bo very small, If indeed there bo
any surplus." He pointed out that from July to
November, the customs receipts were approxi
mately $9,000,000 less than the receipts from tho
same source for a corresponding portion of last
year, and he said that if this decrease should con
tinue, at the same ratio, the surplus would be re
duced' by approximately $30,000,000, and should
tho revenue from customs suffer much further
decrease during the fiscal year, the surplus would
vanish. Ho said that "a large surplus is cer
tainly undesirable," and pointed out that two
years ago the war taxes were taken off with tho
express Intention of equalizing tho governmental
receipts and expenditures. He added "it now
seems likely that a substantial equality of rev
enue and expenditures will be attained." At tha
same time he emphasized the Importance of exer
(Continued on Page 11.)
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