The state chronicle. [volume] (Raleigh, N.C.) 1883-1893, 1886-02-04

Special Cor, STATE CHKoNIcLE.l
HENDERSON, y c., Feb. /, 1886 As the
-il..r question is one Of absorbing interest
IS fue aeople, | beg to submit the result Of
some Investigations lately made with
view of informing myself Of the merits Of
tae discussion in Congress as to whether
the coinage Of standard silver dollars
1l25O erainsJ should be suspended or not;
and if you deem what is submitted Of SUI
Scent value YOU are at liberty to publish
it, First let Us review the
History of 4. 5. Coinage.
Bvt The coinage act of I 1872 (Alex Iamil-
toms Actj there was established free coin
age for gold and silver dollars, which were
to be fun legal tender and joint units of
value The gold dollar was 10 contain
2f75 grains pure gold, the silver dollar
Bal % grains pure silver BY this Law one
grain Of pure gold was equal III value TO
fifteen grains of pure silver; that is, the
ratio by weight was | 10 10. The law
stood thus until 1894. When the number
OF grams in the gold dollar was reduced to
- 20 Of pure 2oId, the silver dollar re
manned unchanged; this net made the ratio
10 Is Why was it made: The gold
dollar Of 193 contained too many grains
81 pure gold 1t was an overrating Of
silver Gold was exported at a profit of
country. as Secretary Manning says in his
report, Tho preponderant coinage Of both
metals by France, whose mlntS We're then
open Hke our own, to AL comerS, at a fixed
..tt!o.,l 10 fJ.5), the United States lost
their gold circulation. The profit III cN-
porting gold waa palpabe." Senator Ben
ton then tried by the said act Of 1884 both
to recall gold and TO keep gold while re-
tanning silver. But he erred as much on
the other side by putting in the gold dol
lar too few grains Of pure gold; TOR now
the silver dollar Of 81. % grains pure sill
yer is more valuable than the gold dollar
of % 70 grains pure gold. 1t was an over
rating Of gold, and again ''the preponder-
nat coinage of France, not TO mention
those of other natious Of Europe being
now more favorable to the owners of silver
than our new ratio Il TO 16) the United
States began TO lose their silver clrcula-
tIon. The profit in exporting silver was
ltalpabe;" this profit was about per cent.
The next coinage act, 1887, added half
grain Of pure gold to the eagle (ten dollar
picce) and made tho dollar contain 23. p
pure grains instead of 1920, as by the act
OF 1881; but the silver dollar remains un-
changed and the ratio is now l to 15.9SS.
But the French ratio and that Of Europe,
substantially, being to 15.5 the silver
dollar continues more valuable than the
new gold dollar Of %. 20 grains pure gold
and silver is still exported at profit.
The act Of 1853 did not affect the gold
or silver dollar, but provided for the coin
age of subsidiary coins to meet want for
small silver coins required IN minor trans
actions, and limited their legal tender
quality TO five dollars. Three years later,
1877. the Legal tender quality which had
been Of necessity conferred upon foreign
Il lii h6pn
ended; and as the silver dollar was more
valuable than the gold dollar Of the acts
of 1894 and 1887, now that they could no
longer be bought up, sent to France, re
coined in French COINS and brought back
here at a profit, about per cent because
the French coins were no longer legal ten
der in this country, the demand tor the
silver dollar practically ceased; but It's
bullion value was greater than that OF the
gold dollar and so continued until 1878
when its full legal tender quality was
taken away by the coinage act Of 1913 and
is further coinage prohibited (Reyised
statutes [. 5. 1910
At the French ratio and that of Europe,
to-Wit 1 to 15.5 the silver dollar of France
contains only 36O grains pure silver,
whereas the United States standard silver
dollar has always contained 311-25 grains
pure silver; that Is, 11.25 more grains OF
pure silver. The alloy which IS 900 tine
brings the silver dollar to 412. 80 grains
standard silver, and the French silver dol
lar to 399. 80 grains of standard SILVER. the
alloy in both, 10 copper, beng the same
70 repalstulate, we have seen that from
1922 to 1878 the monetary units of the
United States were the gold dollar and the
silver dollar equally, the one with the
other. but that while the silver dollar
never was changed, either IL weight OF
tneucsS the gold dollar was changed
twice once, 1894, to give ii fewer mum
Der of grains Of pure gold, and the secOnC
time 1891, to give 1t more, and that II
both instances an error was made. Again
from 192 to 1878, there was free coinage
both for the gold dollar and the silver dol
lar and both were equally full legal ten
der and units Of value, and that the blum
Ierng coinage acts, first of 1892 then 0
1884 and again OF 1888, had resulted III de
nuding the country, first OF gold, whlcl
could b. exported at q profit under tn
ratio iXed by act 1892, and secondly 0
silver. which could be likewise exported a
a profit under the rates fixed by the act
Of 1884 and 1881 We now come to th
coinage act 1878. This act omitted to pro
vide for the coinage of the silver dola
311.25 pure grains; declared that the golt
dollar 1922 grains pure gold should b
tlIc 4lIll Ol NdluG, tlICCUcI ullC IolllttS51 =
half and quarter dollars, dimes and a trad
dollar of 1870. grains standard silver, ant
Sec 35S6, Revised Statutes 1874 prohib
tied these particular coins from being
legal tender for more than five dollars
Sec. II, Act 1913, provided, NO coins
either Of gold, silver or minor coinage
shall hereafter be issued from the min
other than those of the denominations
standard and weights set for in this title.
Thus this Act took from the standar
silver dollar its valuable qualities as
unit of value and full legal tender con
currently with gold and prohibited th
further coinage of them Why was this
This brings us to consider the colnag
laws of Great Britain and Europe.
Coinage of Great Britain and Europe.
In 1916 Great Britain made gold alon
a full legal tender and standard of value
Why was this done
Silver was not then deprecated. 1t wa
high, the ratio to gold was l to 1923. Bu
there was great demand in British lndl
for silver. 1t was then and is now the sol
standard of value and legal tender III tha
pOpulOuS country Great Britain was, an
Is a large creditor Nation ESTIMATED :
$3.50, 600, ,O0O.) by causing all the loar
she makes to be payable in London or else
where III England, she attracts gold froI
all the civilized countries of the Globe
and her policy seems to have been to dt
precIate silver, 50 it can be bought u
cheap TO be sent to British India and }