The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1892-05-27
ABOUT FREE COINAGE.
A Chapter of United States History That
Has Been Ignored BY Unlimited Coinage
Advocates.

Has Been Ignored BY Unlimited Coinage
Advocates.
Commenting on a lengthy article in
the Kansas Farmer arguing on the
hypothesis and assumption that free
coinage of silver would greatly enlarge
the volume OF the currency, the Topeka
Capital says:
1T is customary for free coinage adj
vocates to make this assumption instead
of attempting to prove it. Whereas,
the question whether the free coinage
of silver would in fact enlarge the vol
ume of money is one of the primary
| points at issue, and to make any head
way in their argument before the peo-
pie the free coinage men must prove it.
1t seems impossible to induce free coin
age advocates to discuss the history OF
the United States in its bearing upon
this matter, yet our history bristlea
with the wise suggestions and warnings
of experience. Free coinage of both
gold and silver is not an untried expert
ment- For eighty years we had it by
law. What We're the results and what
lessons may be drawn from that expert
ence? In discussing the issue it is
most singular fact that the extensive
experience of this government should
be ignored by free silver men.
1T was on April ., 1892, a hundred
years ago, that the mint was estab-
liShed and a law enacted for the
free coinage of gold and silver at the
ratio of Is to 1, that being the prevail
ing ratio of value between the two metals
Ill Il,
thirteen years, up to 1905, about a mill
lion and half of silver dollars were
coined, but the amount of gold in a gold
dollar under this ratio proved to be more
valuable by a few cents than the silver
in a silver dollar and by 1906 gold had
ceased to be presented at the mint for
coinage. In order to keep it from with
drawal from the circulation President
Jefferson in 1905, without authority of
law, peremptorily ordered the director
of the mint to stop coming silver dollars
and this order was obeyed up to 1884,
not a silver dollar being coined in that
period. At the rate of Is to both
metals could not be kept in circulation
and the government selected gold and
let the silver go. Up to 1884, there fore,
during forty-two years of free coinage
by law, less than million and half
of silver dollars were coined.
In 1884, in order to get silver back
into circulation and yet retain the gold,
a new ratio of 16 to was instituted
and was re-established in 1887 wher a
new coinage act was passed. From
1894 to 1878 we ha absolute, unrestriet-
ed free coinage of gold and silver, yet
under the ratio of 10 to 1 silver was too
valuable by about three cents in the
dollar to be presented at the mint for
coinage and during that period of
thirty-eight years but seven million sill
yer dollars were coined. In eighty
years of free coinage, therefore, only
about eight million silver dollars were
coined, whereas we have used about a
half billion of silver dollars since the
so-called demonstration act of 1873,
under gold standard.
''In our history it is clear that free
coinage of both metals, in law, by 10
means affected unlimited coinage in
fact. Is there any reason to before
that it will bring about the use of both
metals if the experiment is repeated?
This question is easily answered when
the causes for the failure of both metals
to circulate together from 1893 - 1913
are examined. Nothing is more o6vi-
Gus than that the reason gold refused
to circulate with silver at - to in 1905
was because of the vast output OF Mex
ico's silver mines, which continued to
pour out their treasure up to 1920, the
n foil in,
the relative value of silver to gold. In
the 4Os came the discovery, on the other
hand, of gold in Australia and follow
ing closely upon it the enormous out
put of gold in California Mexieo,
meantime, had approximately ceased to
produce silver and the scale dropped On
the other side of the balance We hNd
free coinage of both metals in law, bit
the increased output of gold reduced
the relative value of gold 20 silver, and
up to 1878 scarcely an ounce Of silver
was presented at the mint for coinage.
Yet, as in the case of gold prior to 1884,
the difference in intrinsic, market value
between the gold in gold dollar ami
the silver in a silver dollar was only
about two cents.
''If a difference of two cents could
have prevented gold from being pre-
scented at the mint and used in the cur
rency of 1905 and had the same effect
on silver from 1884 to 1873, is il likely
that free coinage at the ratio of 1G to l,
when the difference is not two but thir-
ty cents, will make both metals circa-
late? Experience proves that gold will
certainly disappear if silver is coined
free at 16 to !. We will only have sill
yer in place of having both as at present
when under the provisions of a repub-
lican law gold is coined free and $780,
900 ounces of silver is added to the cir
culation every month Under the pres
ent arrangement gold and silver are both
used in currency and circulate side by
side with equal purchasing power, but
as sure as the sun rises on free silver
coinage act at the ratio of 16 to we
will have silver alone as a money
medium"