The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-08-21
AvnagebalE

Horace White, in the Political Eci<nce
Quarterly, states that as early as 1867 the
market values Of the metals had 80
changed that silver instead of gold was
overyalued by the legal ratio, and France
and the Latin Union were forced in 1873
10 close their minis 70 silver, as did Ger
many and all the commercial nations Of
Europe. The intention of Germany and
the rest Of continental Europe 70 close
their minis to silver was known in
America, and 1t was one of the reasons
urged for the passage of the act OF 1873,
that the United States, in this event,
would act wisely TO stop the COIN
age Of the silver dollar. Silver
bullion had for many years gone abroad,
but no dollars were coined, because il
didn't pay; the silver It took TO make a
dollar was worth more than a dollar, but
by 1873 the fall in the value Of silver BULL
ion made the metal in the silver dollar. to
which the minis were still open, worth less
than the gold dollar. This threatened such
an expulsion Of gold as had been suffered
from 1891 to 1884 There were only two
coinage of the dollar or TO limit either the
amount of the silver coinage or its legal
tender power.
From 1873 to 1873 the mints were closed.
Since 1873 We have had limited coinage Of
silver. The United States had to meet
the financial problem that faced the
whole civilized world with the decline Of
silver. If Europe had caught Us
with free coinage of silver in is73 long
before this date she would have dunped
her silver stocks upon us. of which
Germany alone had 100000. Asitis
the silver dollar act of 1878 did make a
market for a portion of Europe's surplus
silver. Free coinage would take up the
surplus of the whole world and make the
United States a silver country with no
gold, as India is now.
The charge that silver was demouetized
I'm 1878 in the interest Of the creditor classez
is utterly secuted by every intelligen.
Democrat and Republican in the land in
Guiding such Democrats as Congressman
Harter and eI-Congressmaa Hurd, of
Ohio The act of 1873 was not the eanse Of
the depression of silver, but it was adop,ed
In consequence of 1t. In the last debates
upon the bill Congress recognized
that in consequence of the accom-
plished and impending demone-
tization of silver by the leading
nations of the world, and the rapid in
crease of the product of silver compared
with that of gold, the two metals were be-
coming separated, and but for this timely
act of 1878 silver would long ago have
been the basis of money, the standard of
value, in the United States Alone the
United States could not maintain silver.
bat would have been compelled by the flight
OF gold under the free silver coinage existing
before the act of 1873 10 have dropped
down TO deprecated silver standard.
Germany demonetized silver after her
last war with France and France met this
soon after by disseminating the purchase
of silver bullion fof coinage. England has
upheld the gold standard since ISIS, after
the close of the great Napoleonic wars.
Under these circumstances il was fortunate
for the United States that the silver act Of
February, 1873. had been passed. Other
wise the rapid depreciation of silver in the
markets of the world would have caused
ihis metal to flow into the United States,
where il could DO coined as full legal ten
Ger money, and as silver came in gold
would have disappeared, for instead Of
taking as we do now only the silver
product Of our own country, We
should have been dumping ground
Cor the silver stocks of the world.
Concerning the ability of the United States
80 maintain the free coinage of silver I'M
der these circumstances singlo-handed
against all Europe, Horace White, an
able and intelligent authority. says:
II sll Europe and America coRjoinei. could
not hold the ratio below ID, what chance IS
there that we should be able, now and alone. 90
turn it back from p 70 l6e Free coinage OF sill
yer means with Us the ratio OF Is toll. The diff
terence between this and the present market