The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-03-08
AND COMMERCE,
FINANCIAL.


IN discussing the coinage bill now before
congress the Chicago Times gives some
very interesting information regarding
prior congressional legislation establishing
a legal ratio OF silver and gold 1t says un.
III 1893 the law with respect to the frac-
tohal silver was substantially what the
committee now propose to make il; the
fractional silver coins were legal tender for
all sums, and dollar in these coins weighed
the same as silver dollar piece. This was
all very well until 1884, for, until that time,
silver was practically our standard, except
Tor few years. Our gold coins were
worth more than our silver coins OF
the same nominal value, and were,
therefore, exported, while the silver coins
remained in the country. Congress had
made 10 to the legal ratio and in so doing
had oyervalued silver. However, for thir-
teen of the first twenty-four years after
the establishment Of this legal ratio the
market ratio averaged below Is toll. The
average was above that ratio in only one
year from 1902 to 1909. The consequence
was that silver coin instead of gold was
exported. In 1906 the coinage of silver
dollars was discounted by order of Pres
ident Jefferson without asking permis-
sion of congress. The reason assigned for
TINS rather arbitrary act of "demonetiza-
ton was that the silver dollars were ex-
ported about as fast as they were coined.
Though the coinage Of silver dollars was
not resumed for thirty years, yet the rea-
son ior not coming II practically disap-
peared III 1909, for from that time for
ward, except in 1913 and 1916, the average
ratio was above Is to /, and the tendency
was to export gold instead of silver nin.
80 strong had this tendency been from 1916
TO 1884 that IN the year last named congress
changed the ratio from Is to to nearly rs
TO !, Tor the purpose of stopping the export
of gold.
Congress accomplished its purpose, and
something more. 1t had before rated silver
at more than il was Worth; it now raed
silver at less than it was worth. The re-
suit was that silver was exported instead of
gold The iractionals took their departure
along with the dollar pieces, and soon there
was very, annoying scarcity of change
ms was relieved at times, as the market
ra.io ana the legal ratio, approached each
other, but in 1853 the inconvenience
had become so great that eon.
gress reduced The weight If
the fractional silver coins nearly per cent.
Silver OF the nominal value of a dollar was
then. worth 1926 in gold. The lighter
iractlonals were, therefore, worth about OF
cents in gold. Ofcourse, they were not ex
ported, and from that time forward until
our deprecated paper had banished coin
from circulation there was no lack of change
IN the country. But the legislators of 1865
did not propose to give debtors, public and
private, license to repudiate 5 per cent of
their obligations. Accordingly, they en-
acted that the subsidiary silver should be
legal tender to the amount of So, and no
more, IN any one payment. In all this con-
al mo- tra, II -.
countries had done; it insured q supply OF
change by reducing the fractional
silver below standard, and at the
same time avoided any degra.
dation Of the standard or injury of credit
ors by limiting both the total amount and
the legal-tender capacity of the fractionals.
since the summer of 1879 these coins have
been legal tender 10 the amount of $40 in
single payments but they are also redeem.
able in full legal-tender money, so TINT
creditors are fully protected, exCcp. against
silver dollars.
THE debt of Charleston, South Carolina,
| is over Si,O000OO.
| Il. c. Weeks has handed over 1908 600 to
the directors of the Pacific National bank
OF Bostsn, thus completing the fund re-
quired for the resumption of business.
The savings bank deposits in New York
city have increased within a wear $1,000,
0OO-more taan halfth total gain of ali The
savings banks of the state. The interest
paid out in New York city last year was
over 81 100000. The depositors in that city
are grand army, the open accounts mum.
bering 10000.
A bankruptcy bill has been agreed upon
| by the senate committee and will be re-
ported Monday next, if opportunity offers.
Members Of the committee are practically
unanimous in favor of the bill to be re-
ported, and it will be vigorously pressed to
passage. Senator Ingalls, will have charge
of the bill.
The Wall Street News says; On Wash
ington's birthday Jay Gould sent for several
capitalists, so We are told, and, after showing
them what a desperate plight the market
was in and what widespread ruin would
result unless moncyed men came to the as.
sstance, borrowed several million dollars
from them to use In buying stocks enough
to check the tide. The curious maniprla.
ton OF the market since then has been due
to the liberal use Of this borrowed fund in
the purchase of stocks. AS long us this
money holds out stocks will be strong,
When 1t gives out there will probably lea
reaction. Everybody of sense is selling ont
now as last as prices get up where cost can
be dragged out of The whirlpool From
time to time, for months past, these che
mata have been administered to the sink
ing patient, but the lapse of time finds him
in a still weaker condition. and more pow
erful enemata are required at each opera
ton TO prolong life.
DALLAS EXCHANGE AND COIN.
Buying Selling, Buylng. Selling
n, Y. Ex, SGsPar@l st. Louis .Saapara
Chicago, .hG5aParaA N, o.. hepN Pare
Galveston y Par@A IIouston..k ParGt
,,i GHMos ~ points % discount s'crlin
Trade dollars. ,pOcts. | Mexican dollars, scot
Mexican halves. ,40cts. Mexican quarters. i5ct
COMMERCIAL