The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-12
THOUGHTS on SILVER.
Even Though Granted Parity With Goh
Can IL he Maintained3

Parity of value, real or relative, between
INV two or more articles. or their manufac-
tured products. may always be maintained
provided all the elements Of cost-neterihl
labor interest depreciation profit, incident
als-remain constant. Though cOmponents
may vary the aggregate OF cost must DO con-
slant. -,
Applying this principle to silver and gold;
their manufactured product. silver aud gold
dollars, may always be Kept at par. pro-
vded their total elements OF cost re-
main constant. Another element apart from
cost, namely, legal tender. enters into the
value OF dollars, but this. though important,
is entirely subordinate 90 cost OF production,
which IN the long run always regulates value,
Secure constancy of cost aud We have gained
permanence of parity. but like the two wings
OF bird they can only work when mutually
equal.
In establishing coinage in 1892, Congress
assumed that equivalent expenditure pro-
duced one ounce of gold or fifteen ounces Oh
silver but ID 1884 the same body assumed Una.
one 10 sixteen were the true equivalent. ana
23 % grains of pure gold were put into one
dollar. and 371A grains of pure silver into
the other. and one-ninth alloy made fespec-
lively Z5.8 and 4l2.5 grains. IL II NV or 1854
equivalent expenditure had produced one 10
twenty-three as at present, the silver doilar
would have Combined 1914 grains or Zo.o
grains if the true equivalent had been one
and one. II Legislative wisdom had elths1
time hit the true equivalent gold
and silver coinage would never have caused
the immense loss and Inconvenience II mas
but as If to show that it IS not IA man Wiz 70
devise u true ratio, the wisdom that was suih-
cient 10 bring out IF chaos the greatest gov
eminent the world has yet seen was totally
insufficient 10 determine how much silver ana
gold were equivalents and AS II 70 show tue
utter imposslbillty II permanent party tue
first essay one to fifteen, OF our Legislative
wisdom emptied our country OF gold. ana inc
second essay. one to sixteen. emptied II OF
silver. and has now set the people oy the ears,
TO the inevitable ruin, according 70 the pest
authorities. Of the country Whichever side
prevails.
The question of parity Of value IS really
question of coDstancy OF cost. TX Tbs IS pos
sble, and II the possible be made actual, theh
silver and gold dollars may be coined al ilDi-
tum and ad infnitum. IL impossible then al
efforts for parity are doomed 10 disappolnt-
mont To prove impOssibility IS a WORK OK
supereroggtlon for intuition tells every one
that. in the midst Of world OF INCONSISTENCY,
it is vain 10 expect constancy OF cost.
A few words. however showing opera
ton of cost upon production. Assuming lor
convenience but not thereby doing violence
t. reality. the capital producing the precious
metals TO be under one management ana as
Stunning equivalent expenditure 10 produce one
ounce If gold or sixteen ounces OF silver, rs
long rs market ratio IS one 20 sixteen me
two metals will be produced indinerently. H.
however. equivalent expenditure produces
eighteen ounces OF silver as easily az one ounce
Of gold. so long as market ratio remains one
70 sixteen expenditure will be diverted nom
gold TO silver, or if equivalent e1pendl-
ture produces as at present twenty three
ounces Of silver as easily as one once Oh gOiu'
market ratio still remaining one 20 sixteen
ill ]. 4 a
silver But in time the market becomes sur
feited with silver aud starved OF gold' inc
metals part company. silver falling and goa
rising. market rntio falls 20 one 20 eighteen
and then one TO twenty-thrse ana at last
equivalent expenditure and equivalent Yaiue
meet on terms of equality IN the open mar
ket In the meanwhile parity has been van
ly searching for q restiug-place, tor parity IS
somewhat like man-neyer IS, but always 10
DO best.
But legal tender makes vast difference.
say some. No not vast only some diner
ence. because the under-valued coin Is ever
liable 10 return 10 It's original form OF DulliOh
and disappear IL is the world and not the
United States that regulates values, ana legal
tender in the United States cannot IA the ebd
prevent tho value of the parent lDuihoh)
from regulating the value OF the cnild lcolh-
age.
But. say others. let us settle parity by
putting in more silver, making the silver
dollar 81 the intrinsic value OF every other
dollar If the United States" ms is huo
plan and il must be all right or the Demo
cratic party Of New York would NOT nave
made II plank in It's last falls platform.
Done. therefore, and on July, 1882. say. the
silver and the gold dollar are like twins
legally and commercially equal HAPPY Gay;
Silver question settled no more degraded
dollars and stigma VI dishonesty Wlpeu OH
our national escutcheon.
But bark Presently are heard onlnOus
sounds sounds of new and richer mines, Sli-
yer down to rs: OF cheaper access ana ine'I t
of reduction. silver down 10 90 Oh the last
stopped buying, silver down 20 80 cents an
ouuce What's 70 be done, Some. the Dem
ocrats of New York. for example. cry car
them in: they are not intHnsicaily eqval'
others leave them out. so betwlXt them O0th
the natiouel platter is found full again Of dis
reputable dollars. Evidently the New lOrA
Democracy IS not the party 10 settle inc SAVof
question.
Or sounds Of mines exhausted silver at
100. Of new gold mines discovered. SILVER IlO'
of The East must have more SILVER, sIyer
100. No need now OF asking about SILVER DOL
lars. They disappear IN night and con
tracted currency aud tight money create a
panic. the ike Of which was never heard OF.
As pertinent 70 panty, it Is to Do noted that
the disappearance OF underyaued goid IRON
f7e2 10 1894 and OF underyalued silver from
deryaluation This IS an error. certainly IN
part. Disappearance. and therefore defeat or
bimetallsm was because the United states
WAS constantly debtor nation. Had she
been creditor neither metal would have dis
appeared. but being debtor and unable to pay
" Tia merchandise payment was made III the /
legally undervaiued coin.
So long As the United States keeps creditor.
that IS g. say go long as foreigners prefer our
stocks and bonds and our merchandise 10 gold
and silver. we need have few fears for disap-
pearance Of legally underyaiued gold for II
differentiation alone causes disappearance,
not siugle gold dollar would now be ex-
changeable for silver dollar.
But suppose several successfully good crops
abroad OF poor cotton crops at home suppose
general dlstrust. SO that our stocks and bonds
are sold instead OF bought, suppose d mum
Der of probable things. either one or several
OF which makes Us a large debtor, then the
underyaiued metal will flow outwards ia such
a stream that the United States may well
tremble for her ability 70 meet her gold obi
cations and the people may anticipate q col
lapse that will bring down their commercial
edlfice IN ruin about their ears
Moral Better 20 slow on free coinage.