THE FARMER AND THE (TRRENCY. 3()7 



It is also proposed by some that if the United States alone 

 should undertake to find sufficient use for silver to materi- 

 ally raise the ])rice of the world's stock of silver, it should 

 not attempt to raise it to the ratio of sixteen to one, which 

 very few believe it can do, but that it should expend its effort 

 towards something easier, in which, as they claim, there is a 

 fjiir chance of success. They tlierefore propose that we estab- 

 lish free coinage of silver at a ratio of twenty to one, or even 

 twenty-four to one. If in this manner, as they claim, the 

 United States can raise the market price of the world's stock 

 of silver even to one of those ratios, we shall have gained 

 much while still retaining the advantage of an international 

 currency. This proposal, however, has so far received little 

 indorsement in this country, although in the discussions relat- 

 ing to international currency it has strong advocates. It is 

 possible, at any time, that the discussion may center on this 

 proposition even here, but at present the advocates af silver 

 say "sixteen to one or nothing," and their .opponents oppose 

 any action whatever by the United States alone. And so the 

 issue is made up. 



The imi)ortant arguments on both sides of this question 

 can be stated quite briefly, but their proper apprehension 

 requires the presentation of one or two other matters not yet 

 alluded to. It may be assumed that as the world's stock of 

 money increases, prices, other things remaining equal, will 

 rise; and that if money decreases, or even remains stationary 

 while commodities and exchanges increase, prices will fall. 

 While assuming this, however, I have hitherto made no dis- 

 tinction between money used to pay, on the spot, for purchases, 

 and promises to pay money in the future. In transactions of 

 this latter kind money is said to be a "standard of deferred 

 payments." It is obvious that when money is received on 

 delivery of goods, and immediately, or soon, paid out again 

 in other transactions, the rise or fall in the value of money is 

 of slight importance in the deal, although it is true that 

 when prices are believed to be steadily falling the number of 

 transactions will be less, as men tend to stop production of 

 goods on a falling market; but considered merely as a meas- 



