The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-02-16

II
that powerful and universal agency through
which the wants and the pleasures of man
kind are ministered to. But what is the
exact way In which this question affects the
dollar? In what manner does free coinage
OF silver differ from the present coinage
which gives us so many of the large round
medals bearing the head of the goddess and
that wonderful eagle of distressing attitude
| l.
Free coinage" may be explained best by
an example. The laws of the United States
have established for many years that 90 2 10
grains of pure gold shall be dollar; and
that 37l Ia grains of pure silver shall be a
dollar also. The law also provides that who
ever has % 2-lo grains of gold may take it to
the United States mint and have it stamped
into dollar at nominal charge, and take
| that dollar away. This is the free coinage
of gold. Whoever digs % 2-10 grains of gold
out of the ground knows that he has dol
lar.
Less fortunate is the holder of 3713 grains
of pure silver. He shas enough silver to
make dollar if he could get it coined le-
gally and freely as the gold is coined. But
this the government will not do. So all the
holder of the silver can do Is to sell his 3714
| grains in the market, at the market price.
| He examines the daily quotations for bar
silver. He finds that 1t is quoted at 101 per-
haps the quotation for February 10). This
means than an ounce (or 4S0 grains) of silver
is selling at $1.O1. The silver holder may
| find cut the value of his 3714 grains by this
| ratio:
| 4S0 $i.0l :: 371A X
By working out the value OF X the holder
of the silver finds that his 371a grains are
worth about rs cents. We're the free coinage
be worth 100 cents to its holder. Thus to
the holder of silver 1t is evident that there is
| a substantial difference between free coinage
aud the present of coinage.
| Compare the two systems another way.
| Under the present law, which was passed
| last summer, the Secretary of the Treasury
| buys each month Al million ounces of silver,
paying for 1t at the market price. When
coined at the legal rate of S7l} grains to the
| dollar this a million ounces Will make about
| 5,S1S000 silver dollars; and the secretary
Will pay for II, according to this m0oth's
market, about Sl.O1 an ounce, or $4.545, 900
coinage the holders of the silver would get
as many dollars as their silver would make.
Thus, so far as the seller of silver is con-
cerned. the difference between free coinage
and the present system, in considering the
monthly purchase by the government, would
be as follows:
41a million ounces under free coinage. Sc, 81 900
| 41a mil ion ounces under present
/ oyottu 4O4D,OoO
Difference. ,0u0
Thus, were coinage free, on the basis of
present monthly purchases, there would be a
| difference of more than million aud quar-
ter of dollars in favor Of the sellers of sill
| yer.
| But it should be borne In mind that under
free co mage the government could not re-
strict the coinage of silver to A millions of
silver month; or any sum. l. would have
| (Which is the same as 4l21 grains of stan
dard or alloyed silver, all the silver that
might be brought to its mints from all parts
of this great round world.
II.
The question next suggests itself whether
or not this monthly addition of A million
ounces of silver issued to the country 10
| dollars either in coin or certificates, worth
but about 70 cents each, according to the
| market price of silver, will In time take the
| place of the gold dollars. By examining the
| state of the country's currency the proba-
bility of this danger may be judged more in
| telligently. According to the last report of
| director Of the mint the stock of metallic
coin in the United States Is about as follows,
Gold. ........... $3.50 100000
/ EllfCt 44O,ZOO,OUO
1t will be seen that some time must elapse
before silver will be likely to.take the place
of gold at the present rate OF coinage. Con-
| gress will have ample time to act when that
danger shall seem imminent
| III.
There severy reason to believe that under
| free coinage, however, this country would
| very soon lose its gold. For the situation
would be thus; every man In the world who
/ has a niQna Of 9ilVlr worth
| (Which is about the worth of the silver In
| one Ofsour dollars at the present price of
silver could take it to United States mint
aud get It stamped into dollar. Then, with
this dollar which has cost the foreigner
about rs cents, he can bay whatever thing
there is for sale in all the United States for
| dollar. 1t Is plain that Ii there Is much
silver In the hands Of foreigners there will
be great rush for the mints of the United
States and this country will very soon be
doOded with silver dollars which were a
little while ago held as bullion at a value of
about 70 cents each: Foreigners, meanwhile
when they sell goods to US will not wish to
take their pay In this cheap silver which
they have just sent to US. and will demand
for dollars worth of goods gold dollar or
II silver Is taken at all, as much silver as is
worth gold dollar. perhaps dollar and a
quarter in silver. it will very soon be noised
abroad that the gold dollar will buy more of
the foreigners than the silver dollar. Then
gold Is at a premium. Every man who has a
gold dollar holds on to II and pays his debts
In silver dollars. Gold disappears, as we
have seen it disappear before In this country
when put alongside large amounts of cheap
dollars.
| w.
The practical effects of allowing cheap
dollar to take the place of standard dollar
that has been In use for many years are not
difficult to see.
Prices will rise.
Food and clothing and rent will cost more
Those who depend on fixed incomes,
wid0 VS. and orphans with property in saw
ings banks or bonds, old soldiers who are
drawing fixed pensions. men who work fol
salaries, all of these will suddenly find that
their incomes will purchase less than for.
merIy of the necessaries Of life.
| so 1t will be with all laborers for time al
least, for 1t is proverbal truth that wages
are the last to rise, and are often forced uI
only after long strikes.
Those who owe money may be able to set
tie their debts to the loss of the creditors, II
the settlement is made promptly; but those
| should beware of the time when fiuctuatioI
or change of standard may make the dollar
dear again.
of course 1t Is an open question whether
under free coinage. the silver of all the world
would seek the United States mints. There
are some things which cannot be determined
certainly until they are tried. But from the
facts. anyone can Judge whether 1t would be
best under the circumstances to try the ex
pertinent. No nation of Europe today vii
open It's mints to the fee coinage of silver
although up to 1870, nearly all European ma
tiOns, except England, allowed free coinage
Of silver as we'll as Of gold. England
has had the single gold standard for seventy
years, IL all the countries of Europe would
open their mfnts to silver on equal terms
with gold, 1t is quite likely that so universal
demand for silver as money would raise Its
price so that the United States rate of 3711
grains to a dollar would leave no profit IN
coinage. But would IL be wise nojicv for
the United States alone to try an Experiment
which none Of the gTeat nations of Europe
will risk, " hich the Latin union of the ma.
tions Of France, Italy, Belgium and Switzer.