Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-05-01
A FINANCIAL QUESTION.

Alexandria, Va. April 70. ls9z'
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A FINANCIAL QUESTION.
Does the q. s. Government Gain Thirty
Cents by the Coinage OF n silver DoiiarY
To he Efitor Of he Dispatch:
II is stated that by seigniorage the
United States Government, under EXISTING
conditions, gains 80 cents upon every
silver dollar that it CONS. IL TINS state,
ment were true. and tho United states nad
only to coin Sl,0O0000 to clear S9Oo,Ocu,
such n consideration might constitute z
forciblo argument for the continuance OF
the present order of things. But 10
hold that the government actually
gains the so cents Is palpaDiy ao-
surd. 1t Is equivalent TO the declara,
ton that the people OF the ohiteo
States can through their Argentine COY,
ernment-by the mere use OF stamp, aud
about 43 per cent. TO the value OF their
property that passes through the hands OF
the government. Thew can no more 90 IL
than man can lift himself by his boots.
If the government could make ~ cents 20
the dollar upon it's silver, why. could IL
not at the same time realize like amount
upon it's goldl Will any one contend that
the United States could place only ~
cents OF actual value in both its silver and
purchasing power of the present dollarE
The United States cannot, any more
than the private individual, reap proht
upon Its property with no enhancement on
the value of the property, without some
one being the loser. In the transaction
during which il Is claimed the government
makes the 30 cents III question there are
only two parties dealt with-the seiler Oh
the bullion and the receiver OF the com.
If there is a gain of 80 cents it must be at
the expense of one or the other or these.
IL il evident that the seller OF the bullion
does not lose anything, because he is
paid no less than tine market price Tor
his COMMODITY. Therefore, II there be
any loss the party TO whom the dollar Is
issued must be the sufferer. Inat II, the
government cheats the receiver OF the
coin out of 80 cents. and If the latter
succeeds in passing It as a dollar the oDll-
CATION is merely transformed to anothers
shoulders. THIS places the United States
| IN the same category with the counter
feiter. depending for the circulation OF It's
| issues upon the failure OF the people TO
detect the difference between the spurious
| coin and the genuine. The believer III
| seigniorage would Indignantly repel such
al Imputatlon upon the honor OF ms
country, but an analysis OF his claim losl-
cally leads TO this Interpretation.
THE TRUE STATE OF TIE cAsg.
When one is shown that the government
paws 70 cents for certain amount OF sill
yer. COINS il, and issues 1t as dollar, one
| il disposed, without giving the subject
| study, TO conclude that the government
has made 80 cents by the operation. But
we have only TO follow the course OF the
coin alittle to find that the gain Is appa-
rent and not real. At the instant the com
IS issued tho party receiving 1t may de-
| g ha q Y
! changed for a gold dollar. The govern
ment will raise no objections, and the re-
ceiyer will then have dollar &C
| knowledged the world over as such,
| while the United States Government
| will be again left with Its 10 cents
worth of silver. If the party to whom the
silver dollar is issued passes It; any snbse-
quent holder may likewise exchange II Tor
| gold. Herein lies the secret OF the clrcu-
| lation OF silver-the confidence or the peo-
pie that the United States will not suffer
| one Of its coins TO fall below the value OF
| another. The people accept the silver dol
| lar with the understanding that the stamp
lone dollar constitutes pledge OF the
! government to exchange 1t or redeem II
| with the best dollar the government Is
sues. If the belief were TO become general
| that the government was unwilling or I'M
| able TO exchange its gold coin tor silver
| the silver coin would Immediately drop 10
| the market value of the bullion used IN Its
congestion. and the fat of the govern
! ment could not prevent that result.
In exchanging gold coin for silver 1t
would appear that the government either
| raises the silver to the value of gold or de-
| bases the gold TO the value OF silver.
| Neither of these suppositions - true,
| though the latter Is more plausible. IL
exchange dollar hat for 70-cent cap,
and then can only get 70 cents for the cap,
while the hat will still bring 81, 1t would
| hardly be claimed that | had raised the
cap 10 the value of the hat, but rather, had
| debased the hat in the transaction to the
| level of the cap. That the gold in the gold
| dollar and the silver III the silver dollar are
| not brought TO a level by exchanging the
| two coins is proven by the tact that their
| bullion values are not brought to parity.
| The government is constantly exchanging
| the two, and If in doing so 1t brought the
| metals in the coins TO q parity that tact
would also bring the metals ont or the
coins TO parity. That the silver in the
| silver dollar is not raised to the value of
| dollar Is shown by the tact that dlsin-
| terested partles-i. e., foreign natlons-wlIl
| not accept IL As such. II Is current among
those only who are Interested Ia pre-
| serving the integrity of the stamp. II a
| party who does not recognize the authority
| of the stamp will accept the coin only at
| the market value of the metal, and Its
value as a dollar is limited 10 those who
| consider the stamp as guaranty, then
must the stamp itself stand for all the
! value attached to the metal above its in
| trinsic worth.
THE GOVERNMENTS PLEDGE.
| What. then, is the significance of sill
| dollar, II - tho actual yalup or tho