The Wichita daily eagle., 1891-10-09
VALUE VERSUS FIAT DOLLARS.
To the Editor of the Eagle.

August 18th under the heading, The
Silver Dollar" brings before the people
the vital points of the money question.
This speech was evidently delivered
by man who is honest and earnest In
his Investigations and efforts to arrive al
and obtain solid and substantial system
of money for the people of this country.
The closing paragraph of the article in
your paper, which, trust, every reader
of the Kansas Farmer will endorse, is as
| follows:
THE whole subject, to my mind, is a
very important one and should be dis
cussed without bias or prejudice, We
should always be open to conviction when
arguments are brought to bear upon any
given subject, whatever our preconceived
notions on that subject may have been"
As l have for many years been giving
considerable attention to the subject
of money and other economic ques-
tions, 1 trust you will permit me
to point out the fatal errors in the theo-
ries and doctrines found in Mr.. Rey-
nold's speech and indicate to your read
ers where the truth lies. There is little
to criticize in the first part of this speech.
After referring to the amount of pure
silver and alloy in the standard dollar,
and to the formation of silver bars, he
says:
''These bars of pure silver are sold in the
| markets of the world like wheat, corn, or
any other product the price being gov
erned by supply and demand"
Had the author of this statement made
a similar one in regard to gold bars, or
bullion, it would have been equally true;
and it is just here where the great obsta-
Gle rests which always has prevented
and always will prevent, the mainten-
ance of double standard, or two kinds
of metallic money as coin, when the free
and unlimited coinage of both metals
prevails 1 lay down this proposition,
and challenge any one to prove it incor-
rect:
No nation on the face of the earth
ever has or ever will keep two metals in
circulation at par with each other, with
the free and unlimited coinage of
both metals, when the bullion in the
dollar of one metal is at premium over
the bullion in the dollar of the other
metal in the markets of the world"
From the organization of the mints in
1898 to the year 1878, when silver was
demonetized, we had substantially the
free and unlimited coinage of both gold
and silver, yet during all this period of
eighty years gold coin was the standard,
and less number of silver dollars were
coined than are now coined In two
months time under compulsory coinage.
There was thirty years of the time when
not single silver dollar was coined, and
three more years when only 81 600 was
coined. In 1872, the last year of free
and unlimited coinage, only 296, 900 silver
dollars were coined. The largest amount
coined in any one year was only 81, 1,11o,-
900, and the total amount of silver dol
lars coined during eighty years of free
coinage was only about 9,045. 900.
Now, contrast these figures with those
obtained since compulsory coinage was
adopted. Silver was demonetized in
1873, and was restored to the money
standard by the act of 1877, establishing
compulsory coinage, and during the first
year of compulsory coinage the govern
ment gave the people q, ,495, $50 silver
dollars-nearly three times as many as
free coinage gave them in eighty years.
During the year 1890 about 80, ,922, ,S16
silver dollars and silver certificates were
put in circulation, and under the amend
ed laws of last year about 54, 600, 900
silver dollars will be added to our cur
rency during the next fiscal year.
Do not these facts show that so far as
giving the people more money is con-
cerned the free and unlimited coinage
stands no chances whatever in competi-
ton with compulsory coinage. Now
why has such results followed
free and unlimited coinage, if that
measure is to be Of such wonderful bene-
fit to the people? 1t was because during
all the years we had free and unlimited
coinage of silver, the bullion in the sill |
yer dollar was worth more in the
worlds market than the bullion in the
gold dollar; and so long as the holders of
silver bullion could get more for it by
selling it in the market than they could |
by having it coined, they would sell it |
instead of taking it to the mints to be
coined. The premium on the silver |
dollar, as compared with gold, varied |
during these years only from one-tenth |
Of one per cent to s. % per cent, yet that |
was sufficient to prevent the owners of
silver bullion from having it coined.
Now why was silver bullion at pre- |
MUM over gold bullion in the worlds !
market? The principle of supply and |
demand, referred to by Mr.. Reynolds,
will answer this question. Previous to
the discovery of gold in California in
1S43 but little of either gold or
silver was produced in this country, |
that of gold being only $24, ,536, 76O and
silver only about $400. 900. From 1S4S |
to 1878 this country produced 81, ,240, $780,
O00 of gold and $169, ,050, 900 of silver,
showing that during that period of 20
years we produced $1,051, zoe, 900 more
gold than silver.
The production of gold in the world
previous to 1878 also surpassed that of
silver; but not to as large an extent as in
this country. In 1873 the worlds pro-
duction of gold was SOC, 100000, while
that of silver was SS1, 500, 900, gold thus
silver by S14, 0,000 The
small supply OF silver produced in this
as compared with gold and the
arge demand for it in the arts explains
why silver was at premium previous to
1878. In 1878 the premium went down
10 46-100 of one per cent But what a
change has taken place since then.
Mr.. Reynolds makes the discount on
silver as compared with gold at the pres
ent time, about 24e per cent That is,
he bullion in the silver dollar IS now
worth in the markets of the world only
81 cents, while the bullion in the gold I
dollar is worth 100 cents.
Now let me ask your readers this ques-
ion: If the holders OF silver bullion
lnder free and unlimited coinage Of
silver would not take their silver TO the
nints to be coined, because they could
;ell il for from 1-10 OF one per cent 20
J. y hundred per cent more { an gold,
What will the holders Of gold bullion be
ikely to do, with free coinage OF silver,
xhan the hulIion in the pOid dollar Is