Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1880-12-08


age of the silver dollar was to secure to the
people OF the United States the benefits Of s.
binetac standard of value. 1t forcibv
urged that to demOnetize silver would increase
the burden of debts, and rest the value Of all
DrOperty upon the quantity on hand of sin
gle metal. 1t was not the intention Of the
trainers Of the act to demonetize gold but to
maintain both gold and silver as standards of
value. This has been done for thousands Of
years; but only by adopting, as nearly as posi-
bic, the relative market value of the two met
ais as the ratio for coinage, and by changing
the ratio adopted whenever for period Of
years it was demonstrated that the market ratio
had changed. The United States has con-
formed to this custom of civilized nations, and
the Constitution recognized it by authorizing
congress to com money, and to regulate It's
value.
Under this authority congress provided, in
1898, that the ratio should be one ounce of gold
to fifteen ounces of silver; and on the 2Sth Of
June, 1884, it changed the ratio to one ounce Of
gold to sixteen ounces Of silver.
Itwould appear that congress oyerrated silver
In 1898, and moderated it i'll 1884, but it is now
certain that sixteen ounces of silver are not
worth one ounce of gold, and if silver were
coined without limit on that basis. it would
eventually bring US to single silver standard,
and reduce gold to commodity, or drive it to
foreign cOuntl1es-a result not intended by the
act OF February %, 1878.
The average cost of the silver in standard
dollar, as shown by the purchases for the gov
eminent from the date of the resumption act to
this time, measured by the gold standard. is
S0.9O6, or III ratio of 1 to 17.64. Upon this
ratio silver dollar, in oruer to be of equal
value to gold dollar, should contain 1853
grains. As the expense Of coming q silver dol
tar is equal to the value of about five grams of
standard silver bullion, it is confidently believed
that silver dollar containing $50 grains; based
upon 3 rrtiO of one of gold to about l7.5 of
silver, could be safely coined, demanded for
use Or expectation, without demonetzing GOLD
or q disturbing contracts or business, and with
great advantage TO the silver mining interests
Of orr country. Upon the facts stated, it would
seem to be Wise policy now, IN the spirit Of the
constitution, to regulate by law the coin value
Of the two metals so as to conform to the
market ratio.
The costof recoining the silver dollars already
issued into dollars of the weight suggested is
estimated at about one per cent, or SIPS AT so.
Much confusion and deIusiOn have arisen from
treating profit the difference between the
cost of the silver bullion coined into silver dol
lars and the face-value of the dollars coined
therefrOm. This difference, from February %.
1873, the date of the act authorizing their coin
age, to November. 1880, is SO, 520. 81 Is. From
this should be deducted the expense already in
CURED IN distributing the coin and by Hastage
which amounts 10 $500, 008 Oh, leaving as the
net nominal profit the sum of s., 258, 863 A. of
which 81, 1913, 294 Sc have been deposited in the
Treasury, and $1,060,E68 88 remains in the
mints. This nominal profit is burdened with
the necessity OF receiving, and thus practically
redeeming, these dollars at their nominal value
IN gold coin, and of reissuing, Transporting, and
maintaining them in ejaculation. This burden
will soon exhaust the nominal profit. When
held by the government the coins are of no
more real value than an equal weight of
standard silver bullion. To the extent
of the difference between their bullion
and nominal value, they are purely fat
o11ol
chase of silver bullion would be sufficient to
meet the entire cost of converting the present
dollars into an equal number of the proposed
dollars; or, in other words, If the present dol
lars were converted into the less number OF the
proposed dollars, the nominal loss would be
fully covered by the nominal profit now in the
treasury and the minis
1t may be better for congress at the present
time to confine its action to the suspension of
the coinage of the silver dollar, and to await
negotiations with foreign powers for the adop-
ton of an international ratio; but, compelled
by official duty to report upon this subject, The
secretary feels bound to express his conviction
that it is for the interest of the United States
now as the chief producer Of silver, to recognize
the great change that has occurred in the rela-
tive market value Of silver and gold in the chief
marts Of the world, to adopt ratio for coinage
based upon market value, and to conform all
existing coinage to that ratio, while maintaining
| the gold eagle of our coinage at its present
weight and fneness. He confidently believes
! that the effect of this measure would be to
| make our gold and silver coins the best
! international standards Of value known. Al
ready the double-eagle, issued without cost of
! coinage, and in greater sums than any other
| gold coin, and Of equal value to any other coin,
whether measured by weight OF tale, Is received
without question in all commercial countries as
| the most convenient medium of exchange. It
| Is believed that silver dollar of the weight and
ratio of the proposed coinage would be the best
| silver standard for international exchange and
! that it would tend to fix the market value of
| silver bullion at the ratio proposed. and would
! thus, as far as practicable, avoid the charging
| relative value Of the two metals, while giving a
! steady market for the silver product of our
| country.
| In this come ction, the attention of congress
| is respectfully invited to the operation of the
| act approved June 9, 1879, requiring the re-
| dempGon III lawful money, at the Office Of the
| treasurer or any assistant treasurer of the Uni
! ted States, of the silver coins of the United
States Of smaller denominations than one dollar.
| When fractional silver coins were authorized
| by the act approved February q, 1853, they
were made to contain 384 grains of standard
silver to one dollar. This was subsequently
changed by the coinage aot of 1873 to IS
grammes or 1858 grains. Thus they contain
| 26.7 grains, OF nearly 61s per cent. less
than the standard dollar. Prior to
1858, by reason of the large production
silver dollar and its fractional parts had risen in
market value aboue par in gold, and were
largely exported. To prevent their expectation,
| and In accordance with the example Of Great
Britain, the policy was adopted, by that act, of
reducing the weight of the min I silver coin,
and this policy operated well unil IN the spring
of 1862, both gold and silver ceased to circulate
as money. During the suspension of specie
payments a remarkable decrease in the value of
silver occurred, and now the market value of
the silver in dollar of the fractional coin is
only 621s cents.
The amount coined prior to November 1, 1896,
under the provisions Of the resumption act.
which substituted silver coin for fractional cur
rency, was $42, 974, 931. To this has been
added very large issued before the war,
and again introduced into circulation since
the resumption of specie payments. 1t is diff
cult to determine the amount of such old coin
age IN circulation, but it is believed to exceed
$22,000,O00. Prior to the act of June 9, 1879,
this fractional coin filled the channels of circula
ton, especially in commercial cities, and gave
rise to the passagae of that act. At that date
there was in the treasury Sc S13 $50 fraction