Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-08-22
FREE COINAGE

FREE COINAGE
MI Edward Atkinson's Paper BEFORE the
Economic Science and Statistics Section.
The economic science and statistics section
held by far the most interesting session THU
morning. Free coinage was the topic and
savants from all parts of the country wrestled
with it. A paper by Edward Atkinson entitled
Free Coinage-Why Not?" was first read by
Secretary Fernow.
The paper stated that the question cannot be
answered. and no definite conclusion can be
reached upon the policy Of free or unlimited
coinage, either Of silver or of gold without
treating separately the two functions which
national governments have assumed in the
matter of directing the supply Of coins which
may be required to serve the purpose of ex-
| change.
There has been much confusion in treating
OF this question because Of the various detni-
tions OF the word money" but all writers
| concur in one respect. Coined money il the
instrument by which the exchange of services
or products is facilitated. It is admitted by
all that one kind Of money may be good and
| another kind bad.
| FRAUD PERFORATED.
When government attempts to make bad
money legal tender it perpetrates the worst
fraud that can be inflicted upon trusting peo-
pie, whether the money consists Of discredited
| paper or coin. In either case it is beyond the
| power OF government to maintain any kind
| OF bad money in circulation to which the peo-
pie refuse to give credit. II lies with the COM
munity which uses the money, and not with
Congress, to determine whether it is good or
bad.
| In order 20 find out what kind of money is
worthy of credit 'hefunction Of the government
| In respect to coinage must DO dealt with sepa-
rately from the enactments Of statutes of legal
| tender.
The paper defined coinage as merely pro-
cess of making pieces Of metal OF given sizes,
weights and fneness. The word ''fine" in con-
| nection with coinage was also defined. The
paper showed that the gold dollar is nine-tenths
of pune gold and the other ten alloy. In the
same way the silver dollar contains nine parts
of pure silver and one part Of alloy.
WHY GOVERNMENTS MANUFACTURE COINS.
The question Of why governments assume
the duty of manufacturing coins and why they
forbid it to private persons is often asked. 1t
| is simply to protect the people who use the
money from being defrauded in the weight and
fineness OF the coin. Governments assume the
manufacture of coin only that they may MAIN
tain the credit Of the coin and in order to give
confidence to all the people.
The usefulness of coin rests upon the conf
| dence which may be placed in the government
| which makesit The credit of the government
and the coin are bound together. 1t is evident
that 80 long as each coin remained true to its
name 1t required no act of legal tender to keep
1t In circulation. Any one holding an obliga-
ton OF another to pay him SO many grains Of
gold or silver requires no act of legal tender to
weight of metal which he has a right to expect.
HOW TEE CONCEPTION OF LEGAL TENDER
ORIGINATED.
The innuirv fhep engooo{ad t., %bo ,,r,,
Of how the conception Of q legal tender
originated. The author of the paper then said
that he had never been able to get reply to
the question, I'm what country, at what tim I,
and under what circumstances the first con-
ceptlon OF legal tender arose" but asked il the
very conception of a forced circulation of any
kind OF money under an act of legal tender had
born In fraud In this view doesn't the at
tempt to force a silver dollar into circulation
| by an act Of legal tender when it is worth less
than gold dollar become a fraud unless silver
dollars are named in the contract?
Continuing, he said that no act illegal ten
der was necessary to the commerce of the
country. The international commerce of the
world needed and had no legal tender law. He
estimated this commerce Al equal to all the
commerce between the people of this country.
international commerce had adjusted itself 10
| gold standard, the pound sterling. There is
no such coin, the term simply meaning SO many
grains Of gold. Balances only are settled in
money. If there were no act Of legal tender -
and, he said, there is mona in China-inte rstate
and individual contracts would be mado and
business carried on just as effectively and just
as freely as at present. To protect the old sill
yer dollars he suggested this clause in a free
coinage act: Subsequent to the date OF this ac
the United States will receive payment Of all
duties or taxes or obligations owing to it in coin
made Of gold or in dollars made Of silver which
Fhad been coined prior to the date of this act"
SUGGESTION AS TO SILVER.
He says that if provision was made tina. silver
dollars coined free should not be received by
the government, but should only be used in
contracts naming silver. all depreciation of
such silver dollars as are now outstanding
would be done away with. This would be the
only change necessary to existing legal tender
acts to make free coinage perfectly safe and
| free from objection. Dollar would mean q
gold dollar SO many grains fine, unless another
dollar was specified.
Two parties, he said, were engaged in the
effort at free colnage-Owners of mines and
their advocates in Congress who want to sell
their bullion to the government at 20 to 80 per
cent more than it is worth, taking the people
for their own profit, and the misguided people
who think it may be more profitable. especially
| to farmers, to deprive them of any further
credit by enabling them to pay their present
| debts in cheap money. deprecated coin. With
these might be classed the politicians
votes. II, when this danger becomes
apparent, the administration does not have
| sufficient courage to prevent the country being
| precipitated upon the single silver standard Of
deprecated silver coin, "a partial remedy lies
within the power of each state" he said. ''Ihe
Constitution provides that state shall make
| anything but gold or silver coin legal tender
for the payment Of debts. 1t follows that the
| states have reserved to themselves the
power OF deciding what shall be legal
tender in the contracts made among
| their own people. 1t WILL therefore, rest with
each state to decide this matter with respect to
| its own citizens. Each state may enjoy the
| benefit of a just and single standard on the
| gold basis. As matter Of course capital will
flow from the dscredited states to the states that
retain safe and staple standard on a gold
| basis" Continuing. he said that this might be
| called a threat. But If it was a threat for a
| state to protect its own citizens it was whole
| some threat. Concluding he said, 1T is quite
| time to denounce those who promote the free
coinage OF silver dollars Of the present stand
ard without change in the present acts Of legal
| tender destroyers Of credit, and persons
| who would impair contracts and who would
| take from the business community its liberty
to make use Of either metal, gold or silver, ac-
cording to the will, judgment and discretion OF
each of its members"
| COINAGE RATIO AND OUR SILVER POLICY.
| The paper by E. T. Peters on on the "Coin-
age Ratio and Our Silver Policy" began with a
| A.. l.. l.