San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1878-03-09
THE BI.MEfAbLiC OPTION. =
Ir,om the Chicavo rrtbune.li .

.''' from the Chicago Tribune.l. 40
The standard dollar of the United States
from 1902 to 1878 was one containing 81 Id
grains of pure silver. This standard dollar
was not established under any assurance
that II was to equal the gold dollar, or to
metal in the United States or In foreign
countries. A dollar of 81 IA grains Of silver
had been In universal use In this country for
u century; 1t was the old Spanish dollar,
which had q worldwide circulation. That
dollar was known to the American people,
and the dollar Of that same weight was made
the unit and standard of American coinage.
In preparing the weights of metal for the
gold coinage, the gold was underyalued;
gold coin than Was required to equalize
II with the silver, So the American silver
being cheaper than the American gold coin,
the latter was melted and exported. After
an experience of forty years, Congress,
with view Of equalizing the values'Of gold
and silver in the coinage, reduced the num-
Der Of grains In the gold eagle, making that
coin worth about 1915 In silver dollars. The
gold coin, being thus made the inferior coin,
got into general circulation, the silver dollar
remaining the standard and the unit The
purpose Of those who adopted the bi-metal.
Tic currency was to prevent any disturbance
in the values of property by any sudden ~.
crease in the value Of either metal While
both gold and silver were made a lsgai,ten-
der, 81 la grains OF silver remained the
standard dollar, II thegold coin were the
bearers as it Twas from 1902 to- 1884, then
gold coin was quoted Mt Q premiums because
worth more than the standard dollar. From
1894 to 1873, gold coin being the cheaper, It
was quoted as greenbacks are now, as worth
from 90 to 81 cents in silver dollars. The
silver dollar was always the standard by
which foreign as well as American coins,
gold'an silyer,.were measured and valued.
The policy OF making the two, metals legal
tender was to protect the people from any
metal. Thus in the case of the rise In the
value Of silver metal the country could at
once resort To- gold, which, being u. legal
dearer silverg This was practically the case
from 1884 to- 1873. On the other hand, II
gold should have advanced in value beyond
IitsOrdinary relation to silver, then the cpun /.
Try could resort to silver coin, which could
be legally substituted for the dearer gold.
In 1875 this contingency Occurred: Gold adj
vanced largely in consequence Of 2 sudden
demand for, $400, 900, 600 by Germany The
occasion for the exercise OF the bi-metallic
OPTION had arrived, and then 1t was discov-
cred that two years previously the standard
dollar and the, bi-metallic system had both
been abolished, and that Congress had pass.
ed law providing for the payment Of all
debts, public and private, in gold coin ex-
clltsively, after.the 1st. Of January, 1871, go
The loss to,the country resulting fromthi
legislative action can hardly be measured.
In the first place, it has prevented the coin
age and the addition to our ctirrency of over
100, 600, 900 OF silver dollars; 1t has prevented
the deposit with the Treasury OF another
500 ,000, 900 Of silver in bullion form repre-
sehted by outstanding coin certificates. 1t
has contributed to the great advance In the
market value of gold, and to the consequent
depreciation of the value of all kinds Of
property. 1t has reduced the value ofiall
the accumulated savings of labor, and added,
without any consideration, largely to the
burden of debts. 1t will require 80 per cent.
more labor and of the product OF labor to
satisfy debting gold than would be required
to satifsy such debt had silver not been de-
m0netized. The injury to business and pro-
ducton by the destruction of the value of
property, which was only possible by the
repeal of the by metallic system, is family
represented by failures of banks, corpora
lions, and individuals all over the country,
and the continued depression and stagnation
in production and trade. "