The advocate and Topeka tribune., 1892-11-23
MONETARY COMMISSION.
(COntMued from page 81

make 2nytnlDg Out gOlu huu sHFor COlA
q tender in the payment Of debts" Con-
Rress cannot demonetize either gold or
silver, except under claim to general
authority over the subject OF currency,
upon which, il it exists at all, there are
no limitations, and which may extend to
monetiziDg any form Of paper. II con-
gFess can establish legal tender, it is
not prohibited. as the states are, from
making anything "but gold and silver
coin tender in payment of debts"
Between 1921 and 1884, when the legal
squivalency between the metals was ID
TO /, gold was at premium in silver OF
from 5 to 7 per cent. and disappeared
from the circulation, and but little was
brought to the mint for coinage. The
legal relation OF value between the metals
Of about 16 OF silver to of gold es-
tsblished in 1884 was an undervaluation
of silver. From that date on and until
1874 the silver dollar bore premium in
the London market over the gold dollar
Of from to per cent. Notwithstanding
this premium, silver did not wholly dis
appear, as gold did between 1921 and
1884, but the quantity in circulation con-
tlnually grew smaller down to 1867, when
both the metals were expelled from the
circulation by legal tender paper. Be-
tween 1850 and 1873, whenever payments
were made in coin, gold was used be-
cause it was the cheaper OF the two
metals, just as silver was used for simi-
lar reason between 1921 and 1884; but
during each OF these periods both gold
and silver possessed equally the poten
tiRlity Of money, the metal out OF actual
use being certain to come again into ac-
tual use when the conditions changed.
After 1884, on account Of the under
valuation Of silver by the coinage law Of
that year, there was tendency to ex-
port silver rather than gold in the settle
ment OF adverse balances Of foreign trade.
In 1852:a scarcity of the small coins
required in miuor transactions began to
DO seriously felt. To meet this difficulty
the act Of February q, 1853, was passed.
Xs provided that the silver coins under
the denomination OF one dollar should
be struck slightly below standard weight,
and that the legal tender functions Of
such coins should be limited to S. in any
ono payment. This expedient, or the
equivalent one Of slightly debasing such
coins, is familiar in the practice Of Euro
pean countries. Previous to the act
OF 1858 the owners Of silver bullion had
the right TACT OF January Is, 1887, Sec
tion 30) to demand its coinage into any
Of the denominations of silver coin
authorized by law. Before that act the
law did not authorize any silver coins
except the three-cent piece, which were
not Of standard weight and fineness, and
which were not legal tender for all
sums. Under the provisions Of that act,
the subsidiary or fractional coins, being
underweiahted, possessed mint value
above their bullion value, and were per
mitted to be coined only on government
account. By this regulation the govern
ment made profit or seigniorage on the
subsidiary coinage equal to the differ
Once between its mint and bullion value.
But after the passage of this law, as fully
a. before it's passage, the owners Of silver
bullion had the right to demand Its coin
age into dollars, whose weight remained
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