The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-04-03
FACTS ABOUT COINAGE.
To the Editor of the Eagle.

In your issue OF March " you say:
Here is conflict between two editoria
minds. Mr.. Halstead says that in tn
event of free coinage our gold will be dis
carded Mr.. Dana, ON the other hand
says, that gold will command small
premium Was gold discarded or at
| premium when the minis of this countr.
were open to free coinage OF silver? !
not, why not? And if not, why shouls
| such things happen now?"
| Now, l believe the EAGLE wants t,
give its readers the facts about this coin
age business, and if you will permit me
| will show you why there is really NJ
| conflict between Mr.. Halstead and Mr.
Dana; and why gold was not at pre-
! MUM when we had free coinage of sill
| yer. and why it will go to a premium il
free coinage is adopted.
Mr.. Halstead simply states what will
inevitably prove to be fact, if free coin
age is adopted, when he says 'our gold
will be discarded as money" and Mr.
Dana in saying that ''gold will be at 6
premium" gives the reason why it will
be discarded
The market value of the bullion in g
gold dollar is now about 20 cents more
than the market value of the bullion IL
the silver dollar. Under compulsory
coinage, the government buys the silver
bullion at its market value, and coins OF
issues silver certificates for it, and puts
the difference between its bullion and
coin value, in the treasury. So long as
it has the power to do that, 1t can keep
the two at par with each other as money.
Since compulsory coinage began in 1877.
the government has put into the treas
ury over S56.000,000, by purchas-
ing and coming silver. But the
very day free coinage is adopted
this profit in the coinage is lost to the
government. and the power to retain
these metals at par with each other will
be lost, and, hence, gold coin will com
mand the same premium that gold
bullion does over silver, and will be
withheld from circulation.
Now, to answer your question, why
gold was not at a premium when the
minis of this country were open TO the
free coinage of silver Gold. as money.
was not discarded. or at premium over
silver as money. for the simple reason
that gold bullion was not at q premium
over silver bullion in the markets of the
world. On the contrary, the silver
bullion was at small premium over
gold bullion, and for that reason the silver
dollar was discarded as money. For
thirty wears not a single silver dollar was
coined, and for thirty-three years only
800 silver dollars were coined. During
the whole period of eighly years, when
we had free coinage OF silver, only
about S.032 900 silver dollars were
coined. The highest premium on silver
during that period was only about per
cent and most time only l or 2 per cent,
yet that was sufficient TO prevent the
the coinage of the standard dollar.
Now If SO small premium as that
will prevent the coinage OF silver, under
free coinage of both metals what Will De
likely TO follow with % per cent pre-
MUM on gold il free coinage Is adopted:
Why. every dollar of gold would go out
of circulation as money within Al hour
after free coinage Is adopted. and would
command a premium equal 20 the pre-
MUM Oh gold bullion. Inc very hour
free coinage is adopted the money stand
ard of this country drops from gold 20
silver. fail Of 20 per cent II that don't
make a panic. what will, pray tell:
The coinage of gold has gradually been
diminishing for the last ten years. In 1881
there was SCI. So, $40 IN gold coined,
while in 1891 there was only So. 4s5. so
of gold coined. On the other hand the
coinage Of silver has been gradually IL
creasiag. /. viii be found almost i'm
possible to keep two metal IN circulation
as money. Where the balance on one
Is at premium over the othsr, unless
the government bags and CONS them
aud puts wha, profit there Is on one into
the government treasury.
Dr. r. p. MILE