The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-08-02
a grooming rin.nci.l I..ue.
WAoHIVUIOlN, I1NI7si . ulJ 10 IvIV'
To the Editor of the sentinel:
WAsHINGroN. INp.. Jul

Sir-Will you be kind enough Through
the columns of the Sentinel) to give brief re-
silver status was during the anIe,beilum days;
when and to what extent Its LEGAL tender
qualities were abridged. and the substanc and
SUBSCRIBER.
The wish expressed by our correspond
emit is doubtless that of a large number of
reac ers, and illustrates the extent to which
public interest is awakening on this new
feature in the financial question. The OPP
portunity will be taken to combine
q rough historical outline of the
former position of silver coin In
our monetary system, and in that OF the
civilized world generally, with a view of
the present status of the question and of
existing and proposed legislation which
bears upon 1t. Various considerations OF
fitness have conspired to make coins of
gold and silver the currency of the world
ever since the necessity for a currency his
existed, and the United States In adopting
them simply took that standard of value
upon which the world had agreed. Com
mercial embsrrassmepts, more or less seri-
Gus, have at various times arisen from the
presence OF two standards, subject to vary
ing degrees of huctustion, but these
have been obvisted by varying
the relative weight and fneness
of the two coinsges. Thus, pre-
vious to the discovery of America, the
intrinsic value of silver relative to gold was
from one-eighth to one-tenth. The sddi-
ton of the immense product of the silver
mines of New Mexico and Peru to the
worlds stock In the sixteenth century,
changed this relation and a movement to-
ward the depreciation of silver set in
which necessitsted material changes in the
coinage to prevent the cheaper metal driv-
ing the desrer out of circulation into the
melting pot. A similar movement, but in
the opposite direction, took place upon
the opening of the California and Australia
gold mines, the increase in the worlds
stock of gold somewhat apprecisting the
relative value OF silver, though it
nsver reached the old height. Twenty
years ago, the Proportional value of silver
and gold, weight for weight, was about as
one to hiteeD. Two causes, the demoneti-
cation of silver by several European ma
tons and the opening Ofthe Bonanza mines,
have conspired to cheaper the former
metal until now the relation stands one to
Q ghtesn.
The equilibrium of our own monetary
system was disturbed by the two latter OF
the changes referred to and several read
justments of the relative weights of gold
and silver coins have been necessary.
The first silver dollar of the United States,
authorized by the act of 1892, contained 4I6
grains OF standard silver, and was
to the gold dollar in weight as
fifteen to one. This was, however,
slightly above the intrinsic value OF
silver, and and an act of 1887 changed the
relation to about 10 to L by reducing tue
weight OF both coins, the new silver d l.
lar weighing 4l2H grains. This relation
endured up to 1873, but the silver dollar
appreciated somewhat in value alter 1850
in consequence OF the increase In the qusn-
tity of gold, and gradually passed out of
In 1872 it was worth 81 03 Ia
standard gold coin. An act of 1853 ms
,erlally reducsd the weight of subsidiary
coin. but as these were only legal tender
20 the amount of IS 90, the act hes little
Significance. 1t must be remembered that
he old silver dollar was full legal tender
without limit.
We now come to the legislation by which
he silver dollar was removed from the coin
age of the country and all this subs quent \
discussion provoked. Following move
ment for the demonetization of silver,
" nich was commenced by G reat Britain in
1906, but which was not marked In its ef-
ecis until joined by Germany in 1870,
Congress enacted law stopping the COIN
,ge OF the silver dollar and furnishing |
lothing to supply its place, the trade dol
ar having merely local and restricted |
,ffice. This law, In effect, abolished silver |
IS legal tender and declared gold the |
ole monetary standard. That such q |
weeping and radical change should take |
place without attracting more attention is |
attributed to the fact that neither gold nor |
liver were in circulation in 1873. |
With the discussion of proposals for |
eturn to specie payment, however, the |
ull force of this legislation becomes sp-
parent, aud its hardship is felt. This
PRACTICAL demons,izstion of silver in effect |
orbids the United States 70 employ the |
,roduc. OF its mines in the payment OF its
leb,s, and, in mbination with similar
movements elsewhere, has forced down |
he relative value of silver to gold from |
,ne-sixtt enth to about one-eighteenth.
The legislation which is proposed to
ectify this error in finance and govern.
mental economy is extensive and various,
md IL does not appear TO which bill our |
rafaro Tho oiluor hill IF Il