National Republican., 1877-12-04

The fractional silver coin now 10 circulation,
though the silver OF which II Is composed u
Of less market value than the paper money,
passes readily among all classes Of people and
answers all the purposes for which Il was DO
signed. And so the silver dollar, II restored
to our coinage, would greatly add to the con-
yenienco Of the people. But this coin should
be subject 10 the same rule, as 10 issue and
convcrtibility, as other forms Of money. IL
the market value Of the silver In itwere less
than that Of gold coin Of the same denomina-
tion, and II were issued in unlimited quanti-
ties, and made legal tender for all debts, IL
would demonetize gold and deprcciate our
paper money.
value Is conceded by all. Since 1884 II has
been practically the sole coin standard Of tha
United States, and since 1915 has been the solo
standard of Great Britain. Germany has re.
Gently adopted the same standard. France
and other Latin nations have suspended the
coinage Of silver, and, 1t "a supposed, will grad
ually either adopt the sole standard OF gold OF
provide for the convertibility of silver coin, on
| the demand of the holder, into gold coin.
In the United States several experiments
have been made with the view Of retaining
both gold and silver In circulation. The
Second Congress undertook to establish tho
ratio Of fifteen Of silver to one Of gold, with
free coinage Of both metals. By this ratio
| gold was undervalued, as ono ounce Of gold
was worth more In the markets Of tho world
than fifteen ounces Of silver, and gold, there
fore, was exported. To correct this, In 1897
/ the ratio was fixed at sixteen to one, but six
teen ounces Of silver were worth in the mar
kct moro than one ounce Of gold, so that silver
was demonetized.
These difficulties in the adjustment of gold
and silver coinage were fully consider ed BY
Congress prior TO tho passage Of the act ap.
proved February21 1853 By that act q new, and
II was believed permanent, policy was adopt
ed to secure tho simultaneous circulation Of
both silver and gold coins In the United States.
Silver fractional coins were provided for at .
ratio of 14.sS In silver TO one In gold, and were
only issued In exchange for gold coin. The
right Of private parties to deposit silver bullion
for such coinage was repealed, and these coins
were issued from bullion purchased by the
Treasurer Of the mint, aud only upon tho ac-
count and for the profit Of the United States.
The coin was legal tender only in payment
Of debts for all sums not exceeding $5.
Though the silver In this coin was worth In
the market 3.13 cents on the dollar less than
gold coin, yet its convenience for uso a.
change, Its issue by the Government only In
exchange for aud its practical convertibility
into, gold coin maintained II In circulation ~
par with gold coin. If the slight error in the
ratio Of 1872 prevented gold from entering into
circulation for forty Ave years, and the slight
error in 1887 brought gold into circulation and
banished sjlYer until 1853, how much more oers
tainly willh error now Of nine per cent.
cause gold 70 be exported and silver to become
the sole standard Of valuef Is II worth while
to travel again the round of errors, when ex-
| perience has demonstrated that both metals can
only bc maintained in circulation together by
adhering to the policy of 1882
The silver dollar was not mentioned In the
act Of 1853, but from 1872 until 1874 1t was
worth more in the market than the gold dollar
provided for in the act of 1897. 1t WIS not
current coin contemplated ~ being In circula-
| nm Mt ba mn af ha ort af Eah
| 1873. Tho whole amount of such dollars, is
sued prior to 1853 was 81 $50, 600. Subsequent
TO 1853, and until II was dropped from our cain
age in 1873, the total amount Issued was
s., ,402, ,s35, or an aggregate of $685. g Is, and
this was almost exclusively for expectation.
By the coinage act, approved February l2,
| 1873, fractional silver coins were authorized,
similar in general character to the coins of
1853, but with slight increase of silver in
them, to make them conform exactly to the
French coinage, and the old dollar was re-
placed by the trade dollar Of 400 grains Of
STANDARD silver.
Much complaint has been made that this
YVES done with the design Of depriving the
people Of the privilege of paying their debts
in cheaper money than gold, but 1t Is mani
fest that this is an error. No one then did or
could foresee the subsequent fall in the market
value Of silver.
The silver dollar was an unknown coin to
the people, and was not in circulation even on
the Pacific slope, where coin was In common
use. The trade-dollar Of 420 grains was sub
stituted for the silver dollar of 4l21 grains
because 1t was believed that it was better
adapted to supersede the Mexican dollar in the
Chinese trade, and experiment proved this to
be true. Since the trade-dolar was authorized
$50, ,7l0, 400 have been issued, or nearly four
times the entire issue Of old silver dollars since
the foundation of the Government. Had not
tho coinage act of 1873 passed, the United
| he nnafi tn EltsI
free coinage of silver dollars, as the Latin ma
tions did, or to have silver rs tho sole coin
standard Of value.
Since February, 1873, great changes have oc-
Cured In the market value Of silver. Prior to
that time the silver in the old dollar was
worth more than gold dollar. while at present
it is worth about ninety-two cents Ii by law
any holder Of silver bullion might deposit il
in the mint and demand full legal-tcnder
dollar for every 4l2l grains Of standard silver
deposited, the result would, be inevitable that
as soon as the mints could supply the demand
the silver dollar would by a financial law as
fixed and invariable us the law Of gravitation,
become the only standard Of value. All forms
of paper money would fall to that standard or
below it, and gold would be demonetized and
quoted at q premium equal to its value in the
markets Of the world.
For q time the run to deposit bullion at the
mint would give to silver an artificial value, Of
which tho holders and producers of silver
bullion would have the sole benefit. The ut
most capacity of the mints would be employed
for years to supply this demand at the cost Of
and without profit to the people. The silver
dollar would take the place of gold as rapidly
rs coined, and be used in the payment Of Gus
toms duties, causing an accumulation Of such
coins In the Treasury. Ii used in paying the
interest ON the public debt the grave questions
already presented would arise with public
creditors seriously affecting the public credit
1t Is urged that the free coinage Of silver in
tho United States will restore its market value
to that of gold. Market value is fixed by the
world, and not by the United States alone,
and is affected by the whole mass Of silver in
the world. As tho enormous and continuous
demand for silver in Asia has not prevented
the fall In silver, II Is not likely that the lin
tied demand for silver coin in this country,
where paper money is now and will be tho
chief medium of exchange, will cause any
considerable advance in It's value. This ad-
vance, If any, will be secured by the demand
for silver bullion for coin to be issued by and
for the United States, as we'll as if it were
issued for the benefit Of the holder of the bul-
lion