New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-12-30
THE CONSEQUENCES or COINAGE.


There seems TO be reason 10 state once moro
The ground, for refusing free coinage ~ silver
by tho United states alone Fox that purpose
il may b. well 70 start with propositions which
cannot be c0ntIoyericd.
I. Whatever price may be maintained for
silver in this country it will be possible for
other countries 10 get for their surplus silver
through free coinage here. If the silver dollar
hero j., held equal to the gold dollar, the Bank
Of Franco alone can draw from this country
over $3.50 OOo. 600 in gold. which is moro than
the entire amount hold in the Treasury. IL ],
safe to say that, out Of $1,000, O00,0 600 Of ST.
yer in circulation. more would be sent here FOX
gold within short time than enough % take
away tho S239, 600, 900 in gold held by thc
Treasury, if silver is maintained here at pa
with gid. Any holder who can turn Gi-ccnt
dollars into lOO-cent dollars, or 100 ounces of
silver bullion into Sl29 - in gold. by merely
sending il 10 the I ni'ed states for coinage, Will
not hesitate long.
=. Withdrawal Of much loss than the amount
Of gold now held by the Treasury would be
sufficient 10 establish and maintain a premium
on gold. Only little premium would suffice
TO mako holders retain their gold for a higher
premium, and refuse 10 pay it out in ordinary
transactions. 50 that the circulation would be-
at once contracted for all practical purposes,
b. tho $50, 900 900 Of gold coin. and Sl23.-
O0O.OO C gold certificate, now outside the
Treasury. Long before $500, O0O, 900 Of gold
had gone out Of the country in exchange for
silver against which paper could be issued,
nearly three times as much gold would have
traction no ono has prog )Scd
3 should the Treasury attempt to resist this
dcbascment Of the currency by offering bonds
for gold, with the mints open 10 silver, foreign
holders Of silver could afford 70 bid for bond,
ship their silver TO the United States, aud get
for it here the gold to pay into the Treasury.
Thus for unavailable silver they would get
bonds of the United States to pay gold and
bearing interest in gold. With free coinage in
this country, the endeavor to draw gold hithcr
by Offering bonds would be Of no avail.
L. With gold at a premium here, and circu-
lating notes practically rcdccmable in silver
and therefore at a discount all the industries
and trade Of this country would be ut fearful
disadvantage, as they were in the weary years
prior 60 specie resumption. AS paper dcprcci-
that another and greater contraction of the
circulation would result. Wages would lose
part of their purchasing power or value. and
labor would lose part Of It's savings.
). Foreign Powers, now Sorcly pressed by
the disasters resulting from depreciation Of sill
yer. would be relieved or think themselves re
Iievcd for some years from their pressing
..oublcS by the performance of tho Cntca
States Enriched by our gold, able to get rid
Of part of their useless silver, they would have
no longer a strong motive 10 agree upon free
silver coinage. On the contrary, it is obvious
that they would find great profit in retaining
a superior currency. everywhere rcdccmablc in
gold. anG in milking this country rs long rs
possible through its use Of an inferior currency.
6. The notion that silver bullion in foreign
markets would be lifted at once to the level
of gold by free coinage in this country is not
50 absurd As the notion that il would stay at
par after Withdrawals of gold had started a
premium here Before purchases of silver be-
Gan under the act of 1890, silver bullion was
lifted suddenly by speculation TO ~ 20 per
ounce. but the anxiety Of holders to realize put
the price down again very rapidly, and it fell
10 the lowest point ever known.
When Don QuiXotc set lance in rest and
rushed full tilt at windmill, he was sensible
person in comparison with those who fancy
that an act of Congress can make silver worth
par in gold throughout the civilized world
But II that is not possible. free coinage hy tho