Journal: Bibliotheca Sacra
Volume: BSAC 53:212 (Oct 1896)
Article: What Government Cannot Do
Author: Z. Swift Holbrook

BSac 53:212 (Oct 1896) p. 719

What Government Cannot Do

Z. Swift Holbrook

[The substance of the following article has been put out by the Republican National Committee as a campaign document in the form of a catechism, constituting Leaflet No. 7. The present more elaborated form has also appeared substantially in the Advance, for August 13th. But it seems desirable to put it in the more permanent form of reference which it will have in the Bibliotheca Sacra.—G. F. W.]

There are some things no government can do. It cannot change the laws of nature, the laws of mind, nor the laws of markets. It cannot make milk out of water, alter the principles of Euclid, nor fix the values of commodities in the markets of the world. The utilities and their relative power to satisfy human wants are not matters controlled by-legislation. Eternal laws and principles defy governments as easily as they do individuals.

Supply And Demand

fix the relative values of gold and silver in the world’s markets. The fact that these metals are used for money as well as in the arts, seems to confuse many good people who imagine that gold and silver have some quality of magic in them that makes them different from ordinary products like wheat, oats, eggs, or iron. But the fact that gold and silver are the most convenient to be used as money enhances their value as metals only because it increases the demand for them.

The value of these metals is twofold: the intrinsic or bullion value, called the market value; and their value as legal tender, called their money or mint value. Silver is dug and

BSac 53:212 (Oct 1896) p. 720

smelted at a profit, at the market value—53 cents for 371 \ grains, which is our silver dollar. If it were not profitable to produce it at that price its production would gradually diminish instead of increasing as it does. Mine owners would not continue to produce it at a loss.

The Cost Of Gold

on the contrary, is relatively 100 cents for each 23.22 grains, our gold dollar; otherwise miners would not produce silver, but would mine gold because it would be more profitable. The former director of the mint made exhaustive calculations from the statements of 155 mines in California, Arizona, Colorado, Montana, and Utah, and found the cost of producing silver was about 52 cents for each ounce, or 480 grains. This was exclusive of all allowances for capital account or for amortization. This would make the real cost of our silver dollar about 40 cents, measured in units of labor and compared with gold.1

Professor Austen Of England

made a searching and exhaustive study...