Los Angeles herald., 1890-06-30
FREE COINAGE.
Our Silver Output Not Sufficient for
Our Wants.

coinage, which is by no means certain,
it will not only demonstrate that minori-
ties in congress are not without power,
for without the patriotic support of the
Democracy no legislation favorable to
the white metal would be possible, but
an opportunity will be afforded to test
the soundness of the objections and the
truth OF the predictions OF Sherman,
Edmunds and the rest who clamor and
declaim against the dishonest dollar -
for whatever would be the effects of free
coinage will follow in some measure any
increase OF silver coinage.
The principal professed objections of
the anti-silver men to free and unlimited
coinage of silver are:
That the market value of the silver in
the 4121a-grain standard dollar is only
about IS cents;
That to throw open our mints to free
and unlimited coinage would inundate
the country with silver, domestic and
foreign, producing disastrous initiation
OF the currency; and
That the cheaper metal would drive
the dearer one out of the country, and
the government would have no gold with
which to meet its "gold Obligations ="
Such senseless objections have been
urged by these wise and patriotic rascas
of Wall street, these senators of money
monopoly, until they seem to impose
upon their own authors, who really ap-
prehend but one thing, the one thing
sure to follow, viz: The enlargement of
the currency Of the country, which they
fear, not because it menaces the inter
ests of the people, but because it Will
lyao LOTT cl,ri,, ,lyon i,,f ha
bags of the bondholding vampires that
for years have sucked the blood from
the industrial masses until the money
centers are congested with gold and the
country at large atrophied and para
lyzed.
If ''the dollar of our daddies' is not
honest, who but John Sherman, by his
own confession ravished it of honor and
virtue for only by reason of the de-
monetization act of 1878 of Sherman and
his accomplices has silver bullion fallen
below its coin value. The consequences
OF the wrong done then are now pleaded
in justification of the refusal to do tardy
justice to silver and the people.
The price of silver bullion, like that OF
any other commodity, is regulated by
supply and demand, and let there be an
unlimited demand for any commodity at
a certain price and the market can
never go below that price. Under free
and unlimited coinage law, like the SEN
ate bill, our mints would afford a market
for all the silver that could be supplied
at one dollar for every 4121s grains Of
silver, standard fneness, or 37134 grains
pure. Silver bullion of standard fine
ness, would be of the same value as
coin, ounce for ounce, because
it could, without loss or cost to the
owner, be converted into coin of equal
paying and purchasing power with gold.
Upon the enactment of such a law the
price of silver would rise at once to 1.29
per ounce, where it was when it was de-
monetized in 1873. The value that was
legislated out Of it would be legislated
back again, and the first objection to
such law be at once disposed OF by the
law itself.
Let us see about the flooding OF the
country with foreign silver. | appre-
hend that no such fortunate consequence
would flow. No doubt the first effect of
the rise in the price of silver in the
United States would be to draw towards
us silver from abroad; but equilibrium
would soon be established as between
two pools of water connected by canal,
w
there are ready facilities for transporta-
ton, and no restriction on trade, the
price of commodity in two different
places will not ordinarily vary by more
than the cost of transportation. The price
of silver in Europe would rise to the
same height as in America, less the cost
of getting it here, and no great induce
ment to export it woul1 exist; besides,
Europe has no silver TO spare us. She is
not to any greet extent a producer
and with the supply from the United
States cut olf, the trade with India and
the natural consumption in the arts and
for subsidiary coinage, would soon dis
pose of the surplus, and the decrease in
quantity would soon cause a rise in
price, independent of the rise in Amer
lea. There is nowhere in existence any
great stock of silver bullion. Bullion is
not especially productive property, and
has not been produced much in excess
of current demand for coinage and con-
sumption. Europe and India would
suffer a loss by melting their coin to
have it received in America, for we coin
upon higher ratio with gold than they
do. Only from the countries south of
us, if at all, would we attract much sill
yer, and there the present supply is not
great.
But suppose that this were not so, and
that large quantities of silver should
come from foreign countries; unless our
statesmen could arrange to have it
given to US, the ships that brought it
here would carry away American goods
OF equal value in exchange, to which no
one would object except the frantic
champions of the "home market"
The danger Of sudden initiation is a
mere fgment of the goldbug mind. Our
mints have not the present capacity to
pour out any great stream OF coin, and
there is nowhere the available material
of which to make it. 1t must first
be dug from the bowels of our noun
tains, which fact would be one OF the
chief blessings of a free coinage, and
Chat could not be done in month nor a
year. :,
Ever since the demonetization of sill
yer we have suffered relative shrink
age of currency year by year. There
should be net increase OF 500 ,OOO, ,OOO
per wear in order to keep pace with the
growth of population, whereas the in
crease is not more than half that amount,
or about the amount coined under the
Bland BILL the coinage OF gold not more
than making good the loss, by destruction
i 81 In1