The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-07-15
SETTLE. WEDNESDAY,. JULY rs
METALLIC FACTS.


ture value of which is so doubtful. and
the purchases of which have so far
been losing speculation" And then
Subscriber" asks us to explain why I'M
certainty does not also attach TO the fixity
of gold for the future. Supposing the dis
covery of some vast gold field. Would that
not disturb the fixed value of gold, Just as
1t has done of silver, only in less degree
Did not the discovery of gold in California
and Australia have this effect?" No ex-
PLANTATION would seem to be necessary of
what lie as obvious as the conclusion that
family relations would be reversed Mr..
Carnegie of course is speaking of the ac-
tual and probable situation, not of the pos
sibilities of the future.
OF course the cheaper metal when freely
coined always drives out the dearer. Sill
yer was overvalued in the first coinage law
enacted under the constitution as it is over
valued now, and 1t drove gold entirely out Of
circulation for forty years. By the act of 1884
gold was overvalued and consequently the
silver dollar was driven out of circulation.
because having higher value as bullion
than its nominal value, it ceased to be a
coin of circulation. Through the enor-
nous addition to the worlds production
of silver during the last fifteen years, gold
has higher value than silver and has dis
appeared from circulation wherever its
sale is unlimited, as in Mexico, South
America, India and China, as ex-Sec-
rotary Fairchild of President Cleve-
lands cabinet points out in his
discussion of the currency question.
The cheap currency. whether it be silver
or gold drives out the dearer, and this is
why the Republican party in the last Con-
gress, after full discussion, while it con-
scented to increase the coinage of silver,
insisted upon limiting its volume, as does
every nation in Europe. Under our first
coinage law, which was repealed in 1884.
the gold dollar was worth more in the
melting-pot than the silver dollar, so peo-
pie paid their debts with the cheap silver
dollar and sold the gold, which was worth
more than its face, to jewelers., and SO gold
took to flight as fast as it was coined and
left us with silver.
Then the act of 1884 was passed, which
overvalued gold, as the first act had over
valued silver, that is. silver was worth
more In the melting pot than gold, so
people paid their debts with gold and
silver disappeared from circulation. Up
to 1873 we had nominally free coinage of
both metals. but really for one only, be-
cause only one could be kept in circula-
ton; the cheap currency, whether gold or
silver. stayed with rs, while that in
which the value Of the pure metal was
the greatest went abroad or to the melt
ing pot. That is. gold took to fight from
1871 to 1884. silver in its turn took to
fight from 1884 to 1873. The increased
production of silver all the world over by
that time caused the price of silver bullion
to tumble so rapidly that we were threat
ened with such a flight of gold as we had
from 1894 to 1884. To prevent this silver
was demonetized from 1873 to 1878, and
since 1878 we have opened the minis to
silver but have limited its coinage.
England, Germany and Russia demone-
tized silver, while the Latin nations keep
it as part of their circulation, but have
limited its issue, so that no civilized
nation of Europe today has free coinage of
silver. We have been compelled to do as
we have done, because the action of Europe
has made gold the accepted standard of
value of the civilized world, and until the
great trading nations of Europe join US in
win &c
gold and silver, the Republican party holds
there is no prudence in free coinage of
silver.
This is the story of silver, an old story;
twice-told tale, but told again for the
benefit of Subscriber" The situation
was forced upon US by the fall of silver in
1873 and we have settled il as all the rest
of the civilized world was compelled to
settle it. All Europe has stopped the free
coinage of silver because il did not
believe that il could maintain the
old ratio of the precious metals. and
as long as these nations despair of
maintaining this or any other ratio. al
they do at present, we are compelled in
prudence to do as we do and limit the
coinage of silver. These are the facts. and
the conclusion we have reached is in
dorsed by every able statesman in either
party. East or West. Against the civilized
world we cannot have free coinage of sill
yer and maintain the parity of both gold
and silver. for. as we have said, the cheaper
metal, upon being freely coined, always
drives out the dearer. This universal rule
asserted itself IS between gold and unlim-
tied inflated paper issues during the war,
and j. ~ould ultimately assert its elf be-
tweenS tbs1 and unlimited inflated silver.
Free coinage of silver would not helm sill.
yer mine-owners in America particle
for Europe holds an enormous amount of
silver which ii would dump upon our
treasury. and this with opening or reopen
ing Of mines that do not now pay, would
knock the price of silver bullion still lower
and force down the wages of every miner
The miners in Montana see this already
and are content with our present law of
1890, under which already We absorb more
than the entire silver product of the
United States. Ii is enough tina. the
American silver product should be con.
sumed in our coinage; this much is now
being done, and to so further would he
90 make the United States a drumming
ground for foreign silver.
A SECOND aUIrEAU.
The attempt on the life of President Car