The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1878-09-19
FREE COINAGE.

THE law remonetizing silver, limited
the amount to be coined each month
and gave the government the exclusive
power Of coming, l. G. it is Only that sill
yer which is owned by the L. S. that can
be coined. La the standard silver dollar
there are 81! grains of pure silver, or
with the alloy used to make it Of sufficient
hardness, 4l2t grains. The trade dollar
contains 37S grains of pure silver and
with the alloy weigh 400 grains. In
foreign markets both coins have only a
bullion value, and the standard dollar is
worth between one and two cents more
than the trade dollar. In the United
States on account Of the standard dollars
being made legal tender by Legislative
enactment, it is worth 10 cents more
than the trade dollar as a medium Of ex-
change. Let us examine how this value,
apparently so contradictory, IS MAIN
tanned.
l. The standard silver dollar is re-
ceivable for all debts, including custom
duties. The trade dollar is not legal
tender for any debt.
2. The standard silver dollar can
only be received from the government at
its full value, 100 cents. There is free
coinage of the trade dollar.
To simplify the calculation, let Us as
sumo that the alloy used in silver coins
is valueless. The owner OF silver bull
lion wishing to have it converted into
standard dollars, gives 42O grains of bull
Ion in exchange FOR 81 gains in the
form of a standard dollar. The govern
ment thus clears 49, grains or almost y
cents worth Of bullion, or little over 10
cents Of a standard dollar, by the legal
tender character Of the dollar Of the
daddies.
It is quite evident then, that with free
coinage, the owner Of silver bullion by
having it coined can get a silver dollar
for 81! grains when now it Will cost
him 420 grains, or his silver will bring
him - cents per 81, grains, more than
it now does, without at all enhancing
tho value of the silver dollar BY free
coinage the people must pay the owner
Of silver bullion - cents more than its
value for 81! gains. At present they
have a coin which passes for 100 cents,
though really worth about SO cents, but
the government makes the difference be-
tween the legal and the real value. By
the free coinage system the individual
who owns the bullion makes tie differ
ence.
One other effect free coinage will have:
all the silver in the country will be sent
to the mint. Silver will flow in from
foreign countries, as here the coin passes
for much more than lis bullion value
All other money viii be driven out as it
is too costly to compete with this cheap
money, made plentiful by the free coin
age system. If 81 grains Of silver will
l,r;,, 70 .,-,-L- :: - 49,, = III
III manufactured articles, it viii DO sure
to find its way to the mint rather than to
the market whore its value is so much
less. In intrinsic value the silver dollar
is worth Is cents less than the gold dol
lar BY law Of congress the silver dol
lar will pay as great debt rs the gold
dollar. Free coinage Of silver will be Il
virtual prohibition on the coming Of gold
and it viii be driven to some countrv
whose laws do not discriminate against
it.
The trade dollar is at present an IN
mitigated nuisance, circulatingat its bull
hon value, 80 cents. If it were what il
purports to be, dollar IN ualttc it would
make 10 difference whether the govern
mcnt left il optional with the creditor to
receive it for debt, il would be taken
rs it had gal1c. The trouble with our
standard silver dollar will be much moro
annoying in time.
Granted, that in the event Of free coin
age, value OF commodities will rise and
thus preserve the proper ratio with the
measure Of value. But there are debts
which may bc paid in this deprecated
dollar. \ debt Of 81 may be paid with
coin worth IS cents. Laborers may get
a greater number of dollars per month,
but those Will be dollars worth IS cents.
and not 100 cent dollars.
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