The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1891-09-09

How IL WOrks-ThG Difference between
1t and tho Free Coinage Policy.
Chicago Tribune
By the silver bill of July, 1890, the
Secretary OF the Treasury is required to
buy ilfty-four million ounces Of silver
per year. He pays for it in treasury
notes representing the gold value of the
bullion. Tho average price has been
about q dollar IN ounce. The total
yearly addition to the circulating me-
dium may be called, therefore, S54,OOO,-
900 per year in the shape Of certificates
paid out in exchange for silver ut Its
gold value, but which the Treasury can
redeem in silver dollars worth now
about 20 cents apiece.
What is the effect OF this legislation,
taken us u whole, on the stock OF gold
in the United States? Adverse bal
ances OF trade with Europe, however
created, must be paid in gold or silver,
or both. II one OF these metals is re-
tanned at home, necessarily the other
must do singly the work previously
done by both. If the government had
not purchased an ounce OF silver during
the part year the result would have
been that fur less gold would have been
exported, while great puantityot sill
yer bullion would have been sent
abroad. During the fiscal year $50
the net exports oil silver amounted to
SlS,O00,OO But ever since the summer
of 1890 this country has been an i'm
porter OF silver, much TO the benefit OF
1.-THE financial institutions OF foreign
countries. During the last twelve
months the three banks OF France, Eng
land and Germany have added $4,000
900 to their gold reserves, and lessened
their silver reserves SlG, 100000.
The practical working OF the present
silver law is to take silver out OF the
list OF commercial exportable articles,
to pile it up in the treasury vaults, pay
balances OF trade, and to send gold
abroad instead In course OF time
every ounce OF gold mined in the United
States will find its way across the
ocean to the vaults Of Europeon bank
ers, with the exception of what is used
in the filling OF American teeth and the
manufacture OF American jewelry. The
quantity OF gold coined at United
States mints has been decreasing
steadily. In 1881 it was $50, 600, 900.
During. the fiscal year ending July l,
1890, It was $l2,000,0O0.
Thus the country is working steadily
towards single silver standard. 1t
may take number OF years to get there,
but that it will reach the goal is as sure
as death under our present fiscal policy.
In two years more, at the present rate
of progress, the paper money OF the
United States will consist almost exclu-
sively of certificates which must be re-
deemed in silver dollars, because even
If the government should wish to re-
deem them in gold, it would not have
the gold with which to do it, If the
balance OF trade should happen to run
against this country pretty strongly,
the arrival OF silver monometallism
would be hastened even without the
free coinage" OF silver, for an addi-
tional impetus would be given to the
expectation OF gold, and the last re-
naming portion OF the supply held by
the United States would be drained
away to Europe to join the II millions
which have gone there this year.
Hence, tho difference between free
coinage" and the silver accumulation
policy OF to-day is in the velocity with
which the change from the dual to the
single standard will take place. The
''free.coinersn want the country to
abandon gold as money and adopt the
single silver standard at q jump. They
wish to 20 from the top to the bottom
of the stairs in one bound. The men
who favor the piling up OF bars OF
silver bullion in the Treasury vaults
wish to 20 downstairs slowly step by
step towards the inevitable adoption OF
the Mexican money system OF silver
only, putting off the evil day as long as
possible and pleading with the silverites
TO grant them yet n littlan time for
tho retention OF gold as money OF &C.
count.
But there is no necessity for either a
swift or slow change TO the single silver
standard. That evil can be prevented
il the government, when it redeems its
certificates in silver, gives the holder q
gold dollars worth OF silver instead OF
10 cents worth Of silver, Gs at present.
When it issues a certificate it gets silver
worth 100 cents in gold. When it re-
deems that certificate why should not do
so on the same basis of equivalent value!
That would DO honest. Then there
would be an actual bi-metallic standard,
with a dollar OF one kind OF money
worth always o dollar Of the other kind.
| Then one metal would not run the other
out Of circulation.