The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1886-03-23
THE SILVER QUESTION.

THE SILVER QUESTION.
Written by John Roemsr Of Clarindtoul, nd4s |
If Marietta College. for the Mafissta Leader. |
"Shal the coinage Of the silver dollar
be suspended" is the great que -tion
the immediate consideration OF
Congress. The nation ID experiencing
another ono 6t those financial deptes.
sions arising from al unstable basis 10
the metallic currently OF the couhtry.-l
Crises resulting ffom this cause have oc.
Cured at intervals since the coinage Of
the 6rst money under the Act Of Con-
eress OF April 81. 1892. In 1894 the
drst money coined under this act vas
the silver dollar OF 4l6 grains weight. ~
The following year the gold eagle vas
coined Weighing 270 grains. eleven
we|fths due, and the ratio n the valuesl
OF the two coins fixed at Is to 1.
1t was an error on the part Of the
Government, at the very beginning OF
our 5i.metsllic currency to overrate the
silver coin for at that time the market
ratio of gold TO silver was Isl to l.
This unjust ratio had tendency to drive
gold ont of circulation, as was the case
In 176l, when Massachusetts overrat. d
gold coin. and thereby drove silver ont
The fact was that gold Immediately dis
appeared, and in 1905, when the banks
Of Massachusetts we're allowed 10 is,u'
frsc'ional paper currency as email ss
twenty-five cents, silver also following
the. Law, that the overrated currenc,
drives from circulation the underrated,
disappeared in the New England States
and paper formed the circulating medi
um Silver was still in abundance in the.
Western States, especially in Ohio, Ken
tuckv and Tennessee, where there we're
no banks. being imported from Mexico !,
bat gold was no more thought OF Now
the specie began TO now from the coun-
try-it was exported to England where
there was stable monetary basis and
low prices. or the 8l,709. .0O0, 600 In
coin in the banks OF Massachusetts in
1911, there Was LETT bat Sl, ,27C 600 10
1916. Such is the history OF q crisis
arising from the overrating OF either
species OF the circulating currency.
Silver became the standard by which
gold Was measured ct. tue beginning OF
the bi-metsllic system.
Gold bore premium OF Eve per cent.
10 1880. and yet the excess OF imports
OF gold coin for that vesr was 1881 600
and OF bullion sl0A,600 In conse.
quence OF the premium on gold. Con-
gsess passed q bill June 20, 1884, redu.
cling the weight Of the gold dollar to
25.6 grains, and fixed the ratio at l6 to
l. At this time the market ratio vas
only 1876 TO 1. This Prof. Sumner
says, was fixed upon in hlass OF ex-
ultation about the recent discoveries o.
gold in North Carolina. which, though
known TO exist since 1901, had only de
veloped since 1928, and extrxyagant
hopes we're entertained OF finding new
Peru in the mountains Of Georgia and
the Carolinss.' Asa result OF this error,
silver obeying the law OF money, wac
retired from circulation. and, in 1851.
bore q premium; in consequence OF
which the silver dollar was virtually de.
monetized by an act Of Congress, Feb
2lst, 1853. reducing the weight OF sub
eidisry coins to 3S4 grains per dollar.
and making them legal tender for FIVE
dollars only.
Do Feb. 18th. 1873, the coinage Of the
Ala grains silver dollar bearing the
ratio to gold OF 16 to |, was prohibited,
and gold made the unit Of value by q
general coinage act, which aided in q
great measure the financial panic OF that
year. This is the first act restricting the
coinage Of either dollar in the history Of
the government, and il is to be hoped
that it will be the last. Three years Ia
ter. the silver dollar was worth only 794
cents IN gold. This Was the result OF
the concurrent decentralization of silver
by Germany, the Scandinavian countries
and the Netherlands, across the Atlantic,
and the United States on this side. 80
An argument used in favor Of sus.
pending The coinage Of the silver dollar
at the present time Is, that it is driving
gold from circulation, and gold is being
exported. Tae truth of the matter il
that gold is h,wing into the United
s ates and silver out. Daring the last
fiscal year the excess OF gold imported
was s18, 900 900. and the excess Of ell
ver exported was 83,000,00 The ma
tion never had too much coin the dc.
mand has always been greater than the
supply; of our circulating currency ell
yer and gold at no time have formed
more than ons.hith.
The bond.holder says there IS no equi
librium between the gold and silver dol
lars; they stand In market value In tht
ratio Of Is to l, and the Governmen
cannot make the ratio Is to l by lecis
lation. When In the history OF The Gov
eminent has there been true eqnilibri
um between the two coins9 Itisa po~
er OF sovereignty to regulate the valu'
of coins, and the Government canno
discriminate between them when she ha'
once fxed their values without impair
ing moral obligation.
A member of the New York Produc'
Exchange, few days ago. in speecl
on resolution protesting against q fur
ther coinage OF the silver dollar, said
the dollar meaning the Bland dollar
is worth only 80 cents, and that ever!
such coin issued from the mint has at
tached to 1t the taint OF nstioDa al theft.
II the Government made any discrimin
stion in favor of the gold dollar In re
ceipt of duties. taxes, de-, then thi
statement would be true. but since tn
gold and silver dollars are legal tender
for all sums, aud equal in value, It !
false. The Government would not b
dsfrauding her, creditors il she shoul'
paw them partly in gold and partly i
silver, bat at the same time would b
stimulating the business interests OF tn
country by paying ont money tbs
would not be boarded, but would 60 int
circulation. Gold would not hear
premium in consequences, hut rather tn
values of the two metals would approac
nearer an equilibrium.
The preaidonf was certainly riQt