The weekly herald. [volume] (Cleveland, Tenn.) 1876-1888, 1877-12-06

vision a. will main tain its current value at par
A gold con Of the denomination Of one dollar Il too
small for convenient circulation, while such a coin
q silver would be convenient Tor a multitude OF
natural instinct Of boarding.
OF the metals. silver Is OF most general use for
coinage. It's a part OF every system Of coinage
even IN countries where gold 10 the sole legal
standard. II best measures the common wants OF
life, but, from its weight and bulk, Is not g conve-
hltht medium IN the larger exchanges OF com
lneree. us production 10 reasonably steady IN
amount. The relative market value OF silver aud
goid IS FAR mere stable than that Of any other two
cOnnodltes-stlll, II does vary. IL 10 not 10 the
power OF human law 20 prevent the variation.
THIS Inherent difficulty has compelled all Nations
70 adopt one or the other ns the sole standard Of
value, or 20 authorize an alternative standard Of
either. or TO coin both metals at an arbitrary stand
ard, and 20 MAINTAIN one at par with the other by
limiting It's amount and LEGAL tender quality. aud
receiving or rcdeeming II at rar with tue other.
IL has been The careful study OF statesmen for
many years 10 secure a bi-metallic currency not
subjected TO the changes Of market value, and so
adjusted that both kinds can he kept IN circulation
together, not alternating with Caolr other. rbe
growing tendency has been to adopt, for coins. the
principle OF 'redeemability" applied 70 different
forms OF paper money. By limiting tokens, silver
and paper money 10 the amount needed for bust
ness, and promptly receiving or Tedceming oil that
may az any time be 10 excess. oil these forms Of
money can be kept III circulation ~ large amounts
at par with gold. In this way tokens OF inferior
Intrinsic value are readily circulated, but do not
depreciate below the paper money into which they
are convertible. The fractional silver CON now 10
circulation, though the silver OF which It Is
composed 10 OF less market value than the paper
money, passes readily among all classes OF people
and answers all the purposes Tor which II was de.
signed. Ana so The silver dollar, " rCstOred 10 our
coinage, would greatly add TO the convenience Of
the people. But this coin should be subject 10 tho
same rule, as 20 issue aud cOnverubilitY, as other
forms OF money. II the market value OF the silver
IN II we're less than that OF gold coin Of the same
denomination, and 1t were issued in unlimite /
quantities, nud made a legal tender for all debts,
II would demoneiizeg gold and depfeeiate our paper
money.
The importance OF gold as the standard Of value
is conceded By oil. Since 1884 IL has been prac.
tcally Tho sole coin standard OF the United States,
and since 1875 has been the sole standard OF Great
Britain. Germany has recently adopted the same
standard. France ana other Laun Nations have
SUSPENDED the coinage OF silver, and, II is supposed,
will gradually either adopt the sole standard OF
gold or provide for the c9nverubility 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 ConRreSs
undertook 10 establish the ratio Of fifteen Of SILVER
to one OF gold, with tree coinage of both metals.
BY this ratio gold was nndcrvalued, as one. ounce
of gold was worth more in tue markets Of the
world than fifteen ounces OF silver, and gold,
therefore, was XpOrted. 70 correct this, Ia 1887
the ratio was fixed at sixteen TO one, but sixteen
ounces Of silver we're worth in the market more
than one ounce Of gold, 80 that silver was demOne-
tized.
These difficulties in the adjustment of gold and
silver COinuge were fully considered by Congress
prior to tho passage OF the act approved February
a. 1853. BY that act q new, ana IL was believed o
permanent pOlCY, NHb adopted 10 secure tue
simultaneous circulation OF both silver ana gold
coins in the United States. Silver fractional coins
were provided for at a ratio Of Ass In silver to one
In gold, and were only issued Ia exchange for gold
coin. The RIGHT of private parties 10 deposit silver
bullion for such coinage was repealed and these
coins were Issued from bullion purchased by the
Treasurer OF tho Mint, and only upon the account
aud for the profit Of the United States. The coin
was q legal tender only In payment OF debts for all
sums not exceeding five d3ilnTs' Though the silver
cents on the dollar less than gold coin. yet its con-
vCnlence for use as change, Its issue by the Gov
eminent only in exchange for, and its practical
converibility into. gold ocin maintained it in cir
c~ulntion at par with gold coin. II the slight error
in the ratio OF 1892 prevented gold from entering into
circulation for forty tive years, aud the slight error
In 1887 brought gold into circulation and banished
silver until 1858, how much more certainly will an
error now of nine per cent. cause gold to be ex-
ported and silver TO become the sole standard OF
valuel Is IT worth while to travel again the round
or errors, when experience has demonstrated that
both metals,can only be maintained in circulation
together by adheriug TO the policy Of 1851
The silver dollar was not mentioned IN the act
Of 1853, but from 1872 until 1874 II was worth more
in the market than the gold dollar provided for in
the act of 1857. IL was not u current com COntem-
plated as being in circulation at the passage of the
act OF February IL, 1873. The whole amount Of
such dollars, issued prior TO 1858, was S2,553, 600.
subsequent TO 1853, ana until II was dropped from
our coinage in 1873, the total amount issued was
s6, 4g9, e38, or an aggregate OF SS,O45 ,SS8, and this was
almost exclusively for expectation.
By the Coinage Act, approved February II, 1873,
fractional silver coins were authorized, similar In
! general CDardctef 10 tue COINS OF 1900, DuL WIN q
slight increase OF silver IN them. TO make them
conform exactly TO the French coinage and the old
dollar was replaced by the trade'dollar OF 400
grains OF standard silver.
Much complaint has been made that this was
done With the design Of d%eprivlnG the people of
the privilege of paying their debts In q cheaper
money than gold, but 1t is manifest that this is an
errCr. No one then did or could fOreseo the Gubse-
qnent fall IN the market value Of silver. The Sill
yer dollar was an unknown coin 10 the people, and
was not in circulation even on the Pacatc slope,
Where coin was In common use. The trade-dollar
OF 400 grains wss substituted for the silver dollar
of 4l2R grains because II was believed that it was
better adapted TO supCrsede the Mexican dollar in
the Chinese trade, and experiment proved tins TO
be true. Since the tradedOllar was authorized
$50, 10000 have been issued, or nearly four tunes
the eutiTe Issue OF old silver dollars siuce the
foundation of the Government. Had not tie
coinage act of 1878 passed, the United States would
now be compelled TO suspend the free coinage OF
silver dollars, rs the Latin Nations did, or to have
silver rs the 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 a gold dollar, while OF present 1t is worth
about nineiy-twO cents. II by law any holder OF
silver bullion might deposit it in the mint and do.
maud q full lecaltendcr dollar for every 4l2b
grains OF STANDARD silver deposited, the result
would be inevitable that MS soon as the minis
could supply the demand the silver dollar
wonld, by q tnancial law as fixed and lnvariaOle
as the law OF grGViiatlon, become the only standard
Of value. An forms OF paper money would fall to
that standard or below 1t, and gold would be de-
mOneti2ed and quoted al a premium equal 10 It's
| NAlut III lUt uNIkttb VI INK NVIlls Iui U illIb II
run to deposit bullion ut the mint would Give TO
silver an artificial value. OF which the holders
aud producers OF silver bullion would have
the sole benefit. The utmost capacity OF the mints
would be employed for years to supply this de-
mand at the cost of and without profit to the poo
pie. The silver dollar would take tho place OF
gold us rapidly 0s coined, and be used In the pay
ment OF customs duties, causing ON accumulation
of such coins in tho Treasury. II used in paying
the interest on tho public debt the grave quotations
already presented would arise with public credit.
ors, seriously affecting the public credit.
II IL urged that the free coinage of silver IN the
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, nnd is affected by
enormous md continuous demand for silver In Asia
has not pre- vented the fail In silver, IL IL not likely
that the limited demand for silver coin In this
country, where paper Is now and Will be the chief
medium of exchange, Will cause any considerable
advance IN ats value. THIS advance, II any, will
NC secured by tho demand for silver bullion for
coin TO he issued by and Tor the United
States. rs well "a il It were Issued for
the benefit OF The holder OF the bullion, II
tho financial condition Of our country 10 so griev-
ous that we must at every hazard have q cheaper
dollar, in order 10 lessen the burden of debts al
ready contracted. II IL far better, rather than TO
adopt the single standard Of silver, to boldly re-
duce the number Of grains In the gold dollar, or
TO abandon and retraco all efforts 10 make United
States notes equal to coin. Either eXpcdient will
DO greater harm to the public az large than any
possible benefit to debtors.
The free coinage OF silver viii alsO impair the
pledge made OF the customs duties, by the act OF
February, 1852, for the payment OF tho interest or
1.-The public debt. The policy thus far adhered TO,
q & collecting these duties In gold coin, has been
N-he chief cause Of uphOlding and advancing the
! fhe nnhlic credit. and making IL UOasiblc To lpHsgn