The record-union., 1891-02-25
THE POORER MONEY.

The silver question under the adverse
report of the committee of the House, to
free coinage, is relegated to a long period
of months before it can assume again the
form of proposed legislation. Really, the
attempts to initiate the bullion value of
silver began seventeen years ago, and have
been continued with more or less vigor
every since. But the success, such as it
Is, that has been attained, has not salts
fed the promoters of the idea. Nothing
short of free coinage will do for them.
The recognized ratio of value between
the two metals, gold and silver, is not
one of divine revelation, not yet is it the
result of the fiat of creative power-it is
the result of processes neither fixed nor
limited in operation, but which can and
do change so as to make the value more
or less. The parity between gold and
silver is dependent upon the relation that
the commercial value of each determines.
This value is due in turn to the volume
of each, and this again depends upon the
cost of production.
The parity between silver and gold in
the United States is to Isl, so that 81 29l
per ounce of silver is the true parity, or
the worth of an ounce of silver. To Illus
trate, if gold had been discovered in
greater and silver in less quantities, the
parity would have gone, say, to IL to l.,
and if a greater amount of silver had been
produced and less of gold, it might
have gone to 20 to l. Now the
only true ratio between the two
metals is one dependent upon the
ease of their production respectively; or,
to put it in another form, upon the diff
culties attendant Upon their production.
The silver men have claimed that by leg
islative decree the real or intrinsic rela-
ton of the values of the metals can be
avoided, and relation fixed by legis-
lation irrespective of commercial values
The error of this position is in the belief
that legislation can ignore conditions over
which legislatures have no control, and
that legislation can avoid, or safely ignore
commercial changes, or determine COM
mercial values, or control natural causes.
The double standard, concerning which
there is so much ialk, is condition in
which the undisturbed ratio between the
two metals has for long time prevailed
and been acknowledged, and under
which coinage is made upon such recog-
nized commercial value of the bullion of
the two metals. In that condition of
things the double standard obtains. But
just as soon as the conditions which pro-
duced the parity changes, the relation
between the metals is distributed, they
are no longer under similar conditions,
and unless the coinage recognizes the
change the double standard ceases.
The effort of the silver men, to restate
the case, is by legislation to make silver
take on value which is not recognized,
and will not be obeyed by the irrevocable
laws of commerce. The free coiners, in
support of this idea, predicted for The leg
islation had in the way of augmenting
and stiffening the coinage of the country,
marvellous results. They have held that
if we produced 4,500, 600 ounces of silver a
month, the metal would reach the old
parity with gold, i. e. 81 29l per ounce.
But all such predictions have failed, as the
RECORD UNION has believed and said,
and the more silver was bought the
cheaper it became.
The coin value of dollar coined of sill
yer and stamped by the Government, and
having its promise of redemption with a
gold dollar, is dollar for debt and for
taxpaying, because of the promise. But
the commercial value of that dollar in
silver is its silver or bullion value, or
1888, practically IS cents, "a cents of dis
count being visited upon it. That is to
say, change the conditions and circulate
the coin without the stamp of the Govern
ment and it will bring but as cents, its
commercial value. The result, therefore
of this circulation would be to advance
everything sought to be purchased with
it just "a per cent.
Now silver, we were told, was to work
by imitation precisely opposite results;
the predictions were that it was to
cheaper things and make money more
plentiful. There is as much money as
ever, but 1t is more stringent. The pre-