Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-06-29
THE SILVER RATIO.
Stand Taken by Congressman Dali
zell in a Friendly Debate.
HE PREFERS THE FRENCH IDEA.
President Gompers Gives His Views on
Labors Attitude in
THE PRESENT POLITICAL CAMPAIGN

TuE fkESENf fOlHTlCAh CAMfAl6N
In the North American Rsyiac for July the
question OF the ratio of gold and silver is dis.
cussed by Senators Stewart and Hans.
brough and Congressman Springer, Bland
and John Dalzell Mr.. Dalzell says:
If the leading monetary powers Of the
world shall enter into an agreement for the
coming of both silver ana gold without re
strfction, and for making them severally OF
Jointly full legal tender for the payment OF
all debts, the practical business question
is, what shall be the ratio?
The question OF the relations of the
precious metals to each other and to com.
merce is recognized as difficult one about
which it is wise not to hazard any too posi-
tive opinion.
The question as to an international ratio
is very different from the question as to a
ratio for the establishment OF bf-metaIlism
in one country alone. In the determination
of the latter question the existing gold
price of silver would be material factor,
while in the determination of the former it
is not of so much importance.
Prior to 1873 the commercial ratio of silver
to gold maintained remarka BILE uniformity.
Up to that year from the beginning of the
Christian era the points of variance were at
the one extreme A.40 of silver to of gold,
and at the other 1875 of silver to of gold.
From the time when France, in 1908, began
the free coinage of gold and silver at a ratio
of 1515 to !, until 1878, when silver was de-
monetfzed by Germany, and fits coinage re-
stricted by the Latin Union, the relative
OF g0G ana Sy IN use in did
French law.
In the United States the legal ratio was
fixed at first at Is to !, and subsequently at
l6 toll But in 1873 change ensued. Be-
tween that date and the present the relative
commercial value OF silver to gold has varied
from 1872 to in the former year to 20. 81 to
in 1891.
Cause OF the Decline of Silver.
"The great underlying cause ofthe decline
in the price of silver" says Mr.. Leech, Di- =
rector of the Mint, ''has been very accu-
rately and concisely summed up in the re-
port Of the Royal Commission on Gold ana
Silver, 1888:
The action of the Latin Union in 1873
broke the link between silver and gold
which had kept the former, as measured by
the latter, constant at about the legal ratio;
and when this link was broken, the silver
market was open to the influences of all the
factors which go to effect the price of a com-
modify. These factors happen, since 1873. to
have operated in the direction OF fall in
the gold price of that metal"
1t would appear, then, that the practical
flxfty Of the relative value OF gold and sill
yer at ratio OF l514 to ! from 1903 to 1873 was
due principally to legislation, and that the
separation of the metals thereafter in rela-
tive value was likewise due in largest part
to legislation. The proposition that an in
ternational agreement shall be made to re-
establish bimetallism is a practical conces-
sion to that effect, since its purpose is to re-
store, if possible, the ''broken link"
The link that bound gold ana silver to-
gether as money was a law Tor an agree
ment equivalent thereto) that the coinage
of both should be free at q fixed ratio of l5h
to l. The action that broke that link and
tary equilibrium between the metals, was
the repeal in practice of the operation of
that law. Would not q re-enactment of the
law in its entirety by international agree-
ment restore the link and with it the old
time monetary situation? In other words,
is not either the French or the American
ratio-a ratio heretofore proven practicable
OF maintenance by experience-the true one
to be returned to?
Ii it be assumed that the relative value of
the two metals depends more than anything
else on their value for the purposes of money
as liked by law it would seem that the
strongest argument exists for the adoption
OF one or other of these ratios Ali the
worlds experience has demonstrated that
the true ratio lies somewhere in the neigh
borhood of the French or the American. and
between them there is not any fundamental
difference. If the choice be limited to these
two the French ratio would seem to be pre-
ferable.
Silver Coined Since Its characterization.
The characterization OF silver did not take
from the worlds circulation the silver coin
age. Silver has been coined since and at the
same ratio. 1t is estimated that there are,
in round numbers. 81 ooO. .OOo, 900 of European
silver In use as money at the ratio of l5% to
/ The report of the Secretary of the Treas
ury shows our stock OF silver to have been
on November ], 1891, s5S9. "a, ,6A, coined or to
be coined at the ratio of l6 to
Now, bfmetallism is a desideratum because
OF the growing need Of money in the worlds
constantly Increasing commerce ANY
change In the ratio toward oheapening the
tion Of the worlds currency and defeat to
that extent the object sought to be obtained
by an International conference. The adop-
tion of the ratio of IL to L instead Of l5x to
for instance would make q difference Of
per cent in the aggregate of European sill
yer; that is to say, the European stock when
recoined, as It would have to be, would lose
and there would be the cost Of recoinage in
addition.
The adoption of the ratio of l51S to on
the other hang would BE- ,PsO fsto re-
OF silver. True, the adoption of this ratio
would necessitate tho reooinage of the
American stock, but the margin between its
to l, amounting to per cent, would suffice
to pay the cost of recoinage.
As the United States are the largest silver
producers In the world, it goes without say
ing that the French ratio would suit
their material interests better than the ratio
now in use by themselves. The objections
that could be raised to any particular ratio
that may be suggested may be conceded to
be numerous; in other words, bfmetallism
can only be established Internationally in
the face of opposition and by mutual con-
cessions on the part of its friends; but it is
to be hoped that such concessions may be
made and that that the cause may triumph
at whatever the ratio may be fixed.