The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-07-06

American public, and while doubling my
ability to throw the needed light upon the
subject l have consented TO make the
attempt promising that this article is for
the lay reader alone and not for those who
have made a study Of the subject and are
familiar with the terms employed in the
discussion Of it.
People often ask what is bmetallism,
what is recommendation, and what is meant
by the ratio between gold and silver.
The money metals now recognized are
gold and silver Formerly co PIPER was re-
garded as a money metal and used for small
coins, and while it is still used for small
coins, it is no longer regarded as money
metal. Those who think both gold and
silver should be used as money are called
bimetallists. or two-metalists. Those
who think but one Of the money metals
ought TO be employed are called mono
nletallists, or one-metallists. Those who
think gold alone should be used as the legal
tender money of the country are called gold
mOnometaillsts, and those who desire to
use silver only are called silver mono
metaliSts.
The gold monometallic countries make
gold legal tender for the payment of all
debts, while silver is used only as sub
sidiary coin. Silver monometallic coun-
tries make silver the only legal tender.
Great Bfitdiu since 1916 has been q gold
monometallie country silver being used
for small money and as legal tender to the
amount of $40, or e.
India is a silver monometallic cou ntry,
gold being an article Of merchandise and
not legal tender.
France is a double standard or metallic
- country and has gold and silver in about
equal quantities, havinglS900, 100000 of gold,
while Great Britain has only $3.50, 10000.
Great Britain has 100000 600 of silver, and
France has between $780, GOO 600 and $780,
oOO00O and some claim even more than
that amount.
The population of Great Britain is Sc, 241,-
$50. France has population of 49, 216, 500.
The United States has always been
double standard country, except during the
period between February II, 1873 and Feb
Tuary IS, 1878. The United States has about
1854, coco Of gold and about S435, 600, 600
OF silver.
About one hundred and thirty to one hum
bred and forty millions Of the people of the
globe are Inhabitants OF gold mOnOmetallic
countries, and the rest Of the world either
belong TO the silver uncomfortable countries
or to bimetallic countries. So 1t will be
observed that about nlne-tenthS OF the pop
ulation of the world that use money use
silver, or silver and gold as legal tender.
Many of even the gold monometallic
countries must use silver as subsidiary
money, gold not being tit TO make small
coins Of, like half dollars, quarters and
dimes.
BY ratio between gold and silver is meant
the relative value that one kind of metal
bears to the other. When We say the ratio
between gold and silver is as one to fifteen
and one-half. we mean that fifteen and one
half ounces OF coined silver will exchange
for one ounce of coined gold. This relative
proportion or ratio was first fixed by the
merchants and traders, and was afterward
established by law. The first accounts of
the fixing Of the ratio are somewhat con-
fused. But we know that the ratio was
fixed in England as early as 1857, and at
different times later by royal proclama-
ton, and in France in 1855 and 1903 The
ratio fixed in France in 1875 and 1903 was
that of one to fifteen and one-half, and this
has been called the French ratio. 1t was
the prevailing ratio of Europe for legal-ten-
der silver but not for subsidiary silver.
For this the ratio has been less, as low as
one to thirteen and one to fourteen, and in
some countries even still less. India has
large amount of silver, and its ratio there
is fifteen to one.
The ratio In this country was first fixed
at to H. and that being too low, was an
generalization of silver and an undervalu-
alton of gold. Consequently the gold went
to the countries where it was valued more
highly when compared with silver, and we
were, in fact, On silver basis, while, ac-
cording to the law, we employed the double
standard. In 1887 we changed our ratio to
! to 10, or, to be exact to l to 1898 Then
we uDdervalued silver and oVerYalued
gold, and the silver went where it was more
valuable, and gold was the only metallic
money we had left in circulation except
foreign silver coins, which continued to
circulate.
1t is supposed that the amount of gold
and silver in the world in use as money is
about equal and the amount has been vari-
Ously estimated. The exact amount is not
material, for, with both metals in use as
money, it has been found necessary to re-
sort to paper because of the lack of gold
and silver to meet the demands for money,
and the paper money in the world at large
now exceeds the amount of either gold or
silver
1t is now proposed by the geld monomet-
allists TO discard silver except for minor
coin or subsidiary money, and to do the bust
ness of the world with gold alone. The
history OF this movement is both interest
ing and Instructive.
1t was proposed in 1856 and 1857, when
the production of gold from California and
Australia was nearly S200,000,000 per an
mum, and silver only about one-fourth that
amount, 20 demonetize gold, and Germany
did demonetiZe gold.
In 1867 conference OF the representa-
tives of various nations met in Paris and
proposed to make gold the sole standard
and to demonetiZe silver. A bill was in
troduced into the Senate of the United
States in 1868 for the purpose Of demone-
tlZing silver, a favorable report was made
by Hon. John Sherman of Ohio, from the
Committee on Finance, and Mr.. Morganl of
New York, made an adverse report for
the minority of the committee. No action
was taken on the bill beyond what | have
stated. In 1871 Germany took the first
decisive step and dem0netlZed silver ana
declared gold the sole standard, providing
that silver should be used only for minor
coin.
In 1872 bill was introduced in the House
OF Representatives OF the United States 10
amend the coinage acts of the United States.
IL passed both houses and became law by
the approval of President Grant on Febru-
AIRY II, 1873. BY this bill the gold dollar was
made the unit Of value and the legal-tender
silver dollar disappeared from among the
COINS OF the country. This feature of the bill
does not appear to have attracted the atteu-
Ton OIL the members of either House OF
l.0lHrRaa and Gnrarnl Grnr, 4 Ii ON