Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-01-05
Article II.
THE SILVER PERn-BUsINEss RE.
vULsIONs.
what the Bland Dollar Is--Its value Kept
Up by Government Power--De.
probation From Continued
Coinage.
By PROF. r. W. rAussIe.
fcopyrlghtcd 1870 /

passed by congress In February, 1878, by
which the coinage Of at least 81, DOC. 600
worth month Of silver dollars was or
dered. These silver dollars contain each
4l23 grains of standard silver, 9-I0 fine;
that is, 81 grains of pure silver. AS the
price OF silver varies, of course the in
trinsic value of these dollars varies.
When the act was passed, in 1878, the sill
yer in each of these dollars was worth
about eighty-nine cents. Since then,
their value has pretty steadily become
less. In 1879 the value was, on the aver
age of the year, about eightv.seven cents.
In 1850 it rose temporarily, and averaged
4 for the year $50 cents Since 1880 the
value has gone down without cessation.
In 1884 it averaged only eighty-six cents.
At present December, 1856 it is only
about eighty cents.
/ Under the steady coinage which was
made compulsory by the Bland bill, silver
dollars have been emitted from the mint
month by month aud year by year, until
! oy December /, 1885, the total number
coined was 2l5,000,000. OF this very
large total, comparatively little Is in ac-
tual circulation. At the date mentioned
! (Dec \ the treasury vault contained no
/ less than l65, 100000 Of silver dollars.
! O1ly about $4,000, 900, or less than quar-
ter of the whole, were actually in the
hands OF the people, and in use as money.
The rest the government cannot
get rid Of But it manages to nav
them out, in part at least, in an
other form. 1t pays them out in the
form OF silver certificates, which are GER
tlhcates OF the deposit of silver dollars,
and which are made by congress practi-
cally equivalent to any legal money. OIL
silver certificates there were issued ON
December about 500, 100000 In this
shape the silver dollars circulate to
much greater extent than in their bodily
form. Adding the silver dollars and the |
silver certificates together, we get SI43.- |
100000 as the total amount of silver mon
ey In the hands of the people. The total
coinage, as stated above, has been S2I5.- |
100000 Consequently the government
mas in its treasury, as pure dead weight |
the difference between these two amounts, |
or 72,OOO,000 silver dollars. That sum
represents a great mass of silver which,
the government has bought, and stamped |
as COIN and stored away in its vaults, and |
Which is OF no earthly use to anybody.
EFFECT OF FREE SILVER COINAGE.
Now what has been the effect of the
coinage of these silver dollars?
IL they had been coined in the way that
governments usually adopt for their coin
age, the effect would have been simple
enough. What governments usually do
is to permit anybody who possesses any
quantity OF the metal which is chosen for
money, TO bring that metal to the mint
aud have it converted into coin. Anv
one can bring an unlimited quantity Of |
gold or silver according as the govern
ment may choose gold or silver stand
m ln int - |
stamped into money. This is what the
United States now does with gold.
Suppose that it had done
the same thing with silver on the plan
of the Bland bill (Which, observe. it has
not done). In that case anyone could
have brought silver without end to the
mint, could have got every 4l21 grains
OF 1t made into dollar, and could have
used the dollars without limit in paving
debts or buying goods. The effect would
have been instantaneous. Gold would
nave disappeared. No one would have
used gold for money. Every one would ,
use the SIS or 90 cent dollars (tbat was
about their value in 1879 in payments.
Every creditor and every seller
would be compelled by law to accent
them. Gold would have been boarded.
or bought and sold as commodity. like :
iron and copper, or exported to foreign
countries. We should have had a silver !
standard Immediately. All debts would !
nave been scaled 10 or 10 per cent, ali :
creditors wronged, all business calcula-
tions upset, all wages paid in depre- .
ciated currency.
THE GOVERNMENT IN A cotN.cr, ,pr,,,,,
TON, 1
BUT the government, by the Bland bill. :
uoes NOT permit unlimited coinage. In
iact, 1t does not permit coinage at Ali n
goes into coinage speculation on it's j
own account. The bill allows no one to
go to the mint and get his silver coined
INTO dollars. The government buvs silver
on Its own account-buys So, 000. 900 n
worth every month-and then converts II i
INTO dollars worth from so to 30 cents
apiece. IL pays out those dollars. All
east, IL has the right to force ANYBODY to !
axe them la payment of any government
leDts. Sooner or later, it has to pay out o
Ill OF them or most Of them. Most of |
hem it has already paid out, as we have !
seen, either directly in actual heavy dol :
airs, or Indirectly in the shape of silver :
;ertlncates. Now why have not these Sill
yer dollars and certificates deprecated. ms
plan? Usual 4
me answer Is, because they have been u
united In amount. The government of a y
'trong country has certain power over D
money. 1t has not unlimited power, il !
'annot by merely saying so, make a
'rass dollar just as good as a gold dollar: I
'ut 1t has certain limited power in max
ng money pass for more thar its intrinsic I
'alne. 1t can issue certain amount ~ i
'oor money,and can keep it in circnlation o
"a par with good money. Exactly how
nuch OF this ii can do, one cannot saw !,
cry precisely in any given case. Much Of
epends ON public confidence in the hon r.
sty OF tae government, and in its not K
money matters. At all events, up TO fhe y
resent time, the United States govern
ient has been able to issue great many 1
these silver dollars, and vet has 4
ept them equal in value to gold dol -
SILVER DEPRECIATION CERTAIN. OF
But the limit OF government mower IN q