New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-29
FREE COINAGE.


"What harm could free coinage of silver do ?"
Ii is question often answered, but late events
show that multitudes yet regard all answers
as unsatisfactory. The TRIBUNE Will freely
admit that many expectations regarding silver
have been disappointed by events, ana VIII
therefore recognize that inquiring voters are
entitled to reasons rather than dogmatlc predic-
tons of evil
If any holder could take his bullion TO the
Mint and for 81 IA grains OF pure silver
could obtain silver dollar, and at every Sub
Treasury the paper note which now clrcuates
and is recognized as o dollar in all accounts, 1t
would necessarily come to pass that the notes
would buy Just what that quantity OF silver
would buy. no less and no more But the value
OF products which we have to sell, over
$3.50, 900, 900 during the last year, is mainly
fixed in foreign markets where gold is the
only accepted standard. The men who have
| these products to sell in this country ii they
wish to prosper are obliged to keep that valua-
ton i'm view. Some of the most powerful COM
binations ever formed have tried to compel
other countries to accept our valuation OF wheat,
or of cotton, or of other products, but the end
has almost invariably been disastrous. The
shrewd business man no longer tries to ignore
| foreign prices in his dealings, knowing that
this country mus. go to the other country to
sell its surplus but they are not obliged to
come to this country for the supplies they need
at any particular time.
The rate of exchange on London Is also
fixed by the foreign houses, through which we
pay for more than $500 90 0, 600 worth OF i'm
ported goods in a year. When they decline to
| I.Il, thn npf nf n
in gold, there is instantly a premium bid for
gold by those who must have it in order to
make payments, and demanded by those who
have the gold. In January, 1862, the paper
dollar would buy about SO cents in gold; IN
December of the same year only about 70
cents of gold. The paper for which the silver
bullion exchanges Is liable in the same way
to deprecate, and as rapidly If silver bullion
called worth 81 in paper here is not worth 81
in gold elsewhere All the power of the Gov
eminent could not in that case prevent men
paying premium for the gold who may need
it in foreign settlements.
Thus the whole matter seems to turn upon
tie accord of foreign markets for bullion with
the American market. If foreigners let New
York make the price without dispute, as they
did substantially in August last, well. But if
they say, when free coinage is enacted "pay
so cents per ounce in paper ii You like; but
we will pay no more than 40 cents in gold for
an ounce of silver" then how could men help
valuing $50 of the paper as equivalent 10 only
S45 gold in all settlements with foreigners?
But that would mean instantly a premium of
33 per cent on gold 1t would mean that the
paper would suddenly cease to have as much
| buying power by ope-third as it previously had.
The wisest man is not he who undertakes
to predict dogmatically how the markets would
act at first or how long before a divergence
between gold and paper would come. 1t gbt
come in single day it might be delayed. But
the speculative spirit is so active that one can
hardly believe some operators would not quick
ly begin to prepare for a high premium by buy
ing gold at small premium. The conviction
of business men abroad, that silver bullion can
not be permanently advanced by free coinage is
so general and SO deeply rooted that in all
probability some would at once risk large
amounts in that belief. 1t would be strange
indeed if the London market should not re-
fleet these influences. When the present Sill
YER Act was passed competent English au-
thorties predicted that silver would probably
riso IT, 81 90 per ounce and then drop back
again. 1t actually rose to 81 81, and dill drop
back The same authorities hold that free
coinage here would make so quick separation
between gold and paper that the price of bullion
in London would not advance but would
quickly decline. BY holding and acting upon
such belief men are quite likely to bring about
Just the thing they expect.