The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-12-31
A NEW COINAGE MEASURE.

THE Calls special Washington CORE
sp0ndent outlines a new coinage measure
which Chairman Bland of the Coinage COM
mittee proposes to introduce. The new idea
is that silver bullion presented at the mint
shall be reserved, regardless of the amount,
and that there shall be issued against it
certificates emitting the holder to the value
of bullion in standard dollars, the basis of
valuation being 81 1929 an ounce. Under
the present act 4, 500, 900 ounces of silver are
purchased by the Government each month
at the market value. Under the proposed
Bland bill the limit would be removed and
the basis OF valuation changed from current
commercial value to the ratio as established
by law. At present current commercial
value is nearly enough, 90 cents per ounce,
but If Mr.. BANDS new measure becomes
law the Government would be required to
purchase all the silver that may be offered
at 81 % an ounce. The bill does not say in
so many words that the Government shall
purchase all the bullion that may be offered.
but it says that the Government shall
receive it and issue coin certificates
against it. Under the presen! act silver
dollars are main tained at par with gold.
Dollars of the two metals are interchange
able. But if the Government should issue
coin certificates against the worlds stock
of silver on the basis of valuation
of ST 90 an ounce there would be
parting of the current values of the two
metals. With unlimited coinage of silver
or an unlimited issue of coin certificates
against silver bullion the current value and
the commercial value would be the same.
In other words, dollars that now have a
current value of 129 cents would then have
current value equal to their commercial
value which at present is % cents an ounce.
This difference in the current value of dol
lars of the two metals would be expressed
by premium on gold. The silver dollar
would possess the current value of 100
cents and the gold dollar the current value
OF about 1874 cents. Fluctuations in the
market price of the two metals would ap-
pear in the increase or decrease of the
premium on gold. In a recent speech in
review OF the Presidents message Senator
Stewart said: mo power on earth can
maintain the parity of the Two me tails
while one is excluded from the mint and
subject to fluctuations in the market and
the other is not" This is true. 1t is
equally true that no power on earth can
maintain the parity of the two metals by
simply admitting both to the mint. so long
as there is any considerable difference be-
tween the commercial value of the two
metals on their legal ratio that difference
will appear in the current value of the dol
lars of the two metals. BY making one the
stand I'd the other is thrown into the mar
ket and subject to fluctuations. Mr.. Stew
art says also that '25. grains Of standard
gold are always worth Il dollar, because
they can be exchanged at the mint for a
dollar" and he argues that if 4125 grains
of standard silver could be exchanged at
the mint for dollar the silver dollar would
also be worth dollar. But there is diff
terence OF about 81 cents in the commercial
value of 25.S grains of standard gold and of
4121a grains of standard silver What is to
become of that difference? Win opening
the mint to bullion Of both metals cause it
to disappear?