Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1891-09-17
1t Would Stop Gold Coinage.

| t'Ds
SENATOR SHERMAN.
1t Would Stop Gold Coinage.
But they say with free coinage the
price of silver will rise to its old ratio
with gold. The experience of all the
world bellies this statement. In no coun-
try in the world where free coinage ex-
lists is sixteen ounces of silver equal to
one ounce OF gold. France and the
United States maintain the parity be-
tween the two by carefully limiting the
coinage and receiving and redeeming
silver coins as the equivalent of gold.
But wherever free coinage exists that is
impossible. With free coinage the mar
ket value of the bullion fixes the value
of the dollar The Mexican dollar con-
tains more silver than the American dol
lar, and yet the Mexican dollar is worth
about seventy y-eight cents, because in
Mexico coinage is free. And the Amer
ican dollar is worth 100 cents, because
in the United States coinage is limited.
So in all free coinage countries where
silver alone is coined, it is worth its mar
ket value as bullion. In all countries
where gold circulates, the coinage of
silver is limited, but is used as money in
even greater amounts than in countries
where coinage is free. This Is the case
in France and the United States. The
free coinage of silver in either would
stop the coinage of gold.
Silver Would be Substituted.
The immediate effect would be to give
to the producers of silver bullion S1.29
for each ounce of silver, now worth 100
cents, but the certain result, and that
right speedily, will be to demonetize
gold and substitute the single silver
standard, and gold will be boarded or
exported and held at premium. This
is denied by the advocates of free coin
age. General Warner, one of the most
intelligent advocates of free coinage,
told me that if such would be the effect
of free coinage, he would oppose it. The
only wonder is that so intelligent man
can doubt it. Silver has been declining
in relative value to gold, though more
than two-thirds of mankind use silver
as their only money. France and the
Latin nations have maintained their
chief silver coins at par with gold by
coming more and receiving their old
coins at par with gold, but if we will re-
ceive their silver for gold at the rate of
sixteen to one, they will eagerly present
all of it to US, except such as is needed
for minor coinage.
Gold Would be at a Premium.
The United States maintain silver at
par with gold by scarcely limiting the
amount to be purchased, but our large
purchases brought foreign silver to US at
market price. How much more will it
bring if we offer twenty-nine cents an
ounce more than the market price2 To
assume that the United States alone can
maintain silver at the old ratio of sixteen
to one of gold is wilder delusion than
ever filled the brain of believer in fiat
money. The fear that we would at
tempt it, carried ST, 900, 900 of gold from
the United States within four months. |
What gold do we have to draw upon
We had on the 9th of July in the
Treasury $236, ,S59, 1854. Of this we hold
in trust SIG, 1914 ,9S9 for the payment of
gold certificates. This is not the money
Vi IIlt Ol1Ocd DbctbCS, Dub IL ID buO 11lOllCg
of the depositors and can only be used in
redemption of their certificates, leaving
in the Treasury only $119, 1854, 175 as the
property of the United States. One
hundred millions of this gold is, under
existing law, held for the redemption of
the S546, 100000 of United States notes. |
AS long as the United States maintains
the gold standard no one will present
these notes for redemption, but the free
coinage of silver, or the purchase of all
the silver offered, will create the doubt, |
yea, the certainty, that the gold stand
ard cannot be maintained, and the
United States notes will be presented for
redemption. If only silver is offered the
immediate effect will be that gold will
be at premium. to be measured by the
difference in market value of gold and |
silver. All the labor and productions of
our people will be measured by the silver
standard. The United States will be de-
tached from the money standards of the
great commercial nations, and will take |
its place with China, India and the un-
developed South American States.
The Loss Would be Upon Labor.
But it is said if we adopt the silver
standard we will get more money for
our labor and productions. This does
not follow. but even if it be true the |
purchasing power of our money will be
diminished. All experience proves that |
labor and the productions OF the farm
are the last to advance in price. Even
if, after a long struggle, wages and
wheat should advance as silver falls,
what benefit does the farmer or laborer
get? None whatever. He will get more
dollars with less purchasing power. Sill
yer dollars worth seventy-seven cents in
gold will buy no more food and clothing |
than seventy-seven cents of our money |
now. The capitalist and speculator Can
protect themselves from loss by stipulat-
ing for gold payments. This is almost
universally done now in California and
other silver countries, and is generally
done in all railroad and other securities
running for long time. The owner of
land and other property can advance his
price as the silver falls. The whole
burden of this policy falls upon those
who depend upon their daily labor for
their daily bread and for the benefit of
those who hope, by cheapering money,
to pay their debts with money less valu-
able than the money they agreed to pay.
The people of the United States are re-
quested in this way to participate in y
fraud. I cannot believe, if they under
stand it, they will do it.
Keep Both on the Same Footing.
But it is said we want more money to
transact the business of the country. Do
we get more money by demonetizing
one-half of all we have, for the gold now
in circulation Is more than one-half of
the coin in circulation? 1t is now the
basis of all the great transactions of for