The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1878-03-15

1872 undervalued gold and drove IL 10 for
eign markets 10 get the commercial difference
or premium which was about per cent and
the ratio ofls34, 81 undervalued silver and
drove it to foreign markets to get the com
morcial difference or premium making the
commercial value Of the silver dollar of 4l2A
grains Of alloyed silver 10 1873, at the rate Of
l6 to 10 command premium of per cent
over the gold dollar of % $40 grains of al
loyed gold. Congress in 1873 changed the
unit of value frou the silver dollar of 37li
grains Of unalloyed silver to the gold dollar of
% 22-l00 grains Of unalloyed gold. As this
was designed 10 promote the interest of Bond
holders and Bankers, it requires some expa-
nation, to see why Congress adopted unit of
value, having three per cent less commercial
rdiue than the unit Of value established in
1892 and existing in 1870 under which the
bonds and all public and private debts had
been contracted, and by which they are most
unquestionably payable as no er poet .facto
idw, or law mpairing the obligation of con-
tracts eau be made, by Congress or by the
States.
In 1862, Congress for the first timo made
the interest on bonds payable in coin instead
of with lawful money of the Federal Gov
ernment, as had been usual in all of its legis-
lation on that subject previous to that time
aud also made custom house duties payable
in coin only and not in coin aud Treasury
notes, as required by the Independent Treas
ury Act of 1910 and 1916 which Congress
suspended in 1862. As no provision had
been made for coming silver dollars since
1858, which then commanded a premium
over the gold dollar, the only coin to pay
Custom House duties with, was gold coin,
and as the demand for it for that purpose er-
ceeded the supply it was thus made to COM
mand yfactudting premium, ani that was
what was designed as it increased the inter-
est on the bonds equal to the premium on the
gold coins
Congress in 1873, not only changed the unit
of value, from 81 / grains of unalloyed silver
to 90 22-l00 grains Of unalloyed gold, with in
commerce from to s per cent. less than the
37li grains of pure silver but prohibited
the coinage Of the silver dollar of 4l2l grains
Of alloyed silver, and then in revision Of
the acts of Congress in 1874 the silver dollars
and all fractional silver coin were prohibited
from being legal tenders for amounts over So
and in 1876 all silver dollars were prohibited
from being money or legal tenders for even
one mill, or any amount whatever, by which
the design Of increasing the interest and prin-
cipal Of the public debt due to bondholders
and bankers was increased equal to the pre-
MUM on gold coin, caused by the dishonest
and designing acts of Congress and members
Of Congress in the interest Of bondholders
and bankers have presumed to .denounce the
act restoring the silver dollar to its legal ten
der power, as destructive of the honor Of the
country, whilst it merely overthrew their de-
signs, and will undoubtedly promote the pub
lie interest, and the honor of the country
and the prohibition Of Banks Of Issues.
When U. S. Treasury notes popularity
called Greenbacks are made equal legal ten.
ders with gold and silver coins, and thereby
made pure with them, as will be done, and
the bondholders and bankers begin to lose the
premium on the gold dollar, for which they
have contended the principal and interest of
their bonds are payable in they will very anx-
iously accept Of silver and Greenbacks in
payment in preference to being rendered pay
ment in gold, at ratio Of nearly 16 to1.
As the ratio Of commerce is about l5.
ounces of silver to l of gold, and the legal
ratio is nearly 16 to the gold dollar will not
command 100 cents or dollar in commerce
and is therefore not what the gold coin "bu.
siness" call an "honest" dollar, or dollar
that will command 100 cents in commerce
and as 37li grains of pure silver in the dol
lar Of 4123 grains of alloyed silver is under
valued at the ratio of 16 to l, it contains too
many grains or the gold dollar of 1922 too
few grains, consequently the gold dollar of
37lf grains is worth more in commerce than
the gold dollar; but as both are equal legal
tenders, and the value of all dollars are equal,
by..l law to 25 $40 grains of alloyed gold or
%. % grains of unalloyed gold, 2l 3.5 carats
fine or ten parts fine, one alloy, 9 parts pure
metal, it is with legal and not with CONNER
cial dollars, with which we have to deal
therefore the cant about "honest" money is
all "humbug," and nonsense.
When all debts public and private, con-
tracted under legal dollars, not worth 100
cents in commerce are paid of, it will be en-
inently proper to make the unit of value or
all dollars worth 100 cents, in commerce, as
well as in law. The silver dollar of 4I2.
grains having been restored to its legal tender
quality, will enhance the value of silver |
and soon place it at the premium over
the gold dollar which it had in 1873 namely !
4 to 5per cent. The use of gold and silver as
money gives them their clue of value. If they
were not used as money by the commercial
Nations of the World, they would not pay the
cost of mining and refining them. Expert.
ence has shown that the main thing to be
considered in selecting meterial for money
is the question of its convenience in use or
handling. Money is not wealth nor is it
representation of wealth. it is purely repre-
sentative Of value-"a tool of trade" The
length of this article prevents my discussion
at this time, of the remaining subject in re-
lation to money and trade.
WASHINGTON LETTER