Los Angeles herald., 1892-05-17
FREE COINAGE OF SILVER.
An Extract from the Majority Report OF
the House Coinage Committee.

An Extract from the Majority Report OF
the House Coinage Committee.
The majority report of the house COM
mittee on coinage, weights and measures
on the Bland silver coinage bill discusses
the various objections made against free
coinage, and shows how free coinage
would greatly benefit this country.
After providing for the free coinage
of silver, the report says il is pro-
vided that the silver be of standard line
ness to meet the cost of the alloy used,
the alloy being all the expense now ex-
acted of depositors of gold. Coin notes
may be issued on the gold or silver de-
posted, if demanded, instead OF waiting
for the coin. The committee raised the
maximum denominations of these notes
from $500 to 81 1000, so as to accommo-
date dealing in large transactions and
bank exchanges.
These notes are made legal tender, re-
deemable in coin on demand. The bill
provides for the conversion of all our
gold and silver notes into coin notes, re-
deemable in coin, thus doing away en-
tirely with all legal distinctions. 1t is
believed this will greatly tend to pre-
| mote equality in all respects. There Will
be no longer issued gold or silver notes,
but bimetallic notes payable in either
coin at the pleasure of the government.
The report says it is contended that
the reason we exported silver bullion
while our mints were still open to its
free coinage was that our ratio was such
that bar coin and bullion silver was
worth more as compared to gold at
European mints than here, and that the
same results would again follow our
ratio remaining at 16 to 1, with the
French mints open to free coinage at
151s to l. This, it is held, would prevent
European nations, especially France,
from again returning to the bimetallic
system. To avoid this the committee
provided that our ratio should be
changed to 151s to SO soon as France
resumes free silver coinage at that
ratio.
The report then, under the head "The
Dump of Silver" proceeds to discus
sion of the cry that free coinage of sill
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dumping ground for the silver Of the
world, and says:
''The familiar warning that free coin
age would cause shiploads of silver from
other countries to be brought here and
dumped at our mints in exchange for
our gold is still urged. How can this be
under the bill or proposed law? The
shipload of silver brought to our mints
by the foreigner would be coined into
standard dollars and these dollars re-
turned to him, but he could not go to
our treasury and demand gold for them.
Nor could he compel one of our citizens
to swap him gold dollar for silver
dollar; that is voluntary trade that no
law ought to interfere with.
'Should the foreigner take coin notes
for his bullion instead of coin, the same
thing happens. He can take his coin
notes to the treasury and demand re-
demption, but the notes are redeemable
in coin and the secretary of the treasury
could hand him back the coin struck
from his shipload of bullion. The for
eigner then would ascertain that he had
committed the blunder of bringing sill
yer to our mints when it is worth three
cents on the dollar less than it was at
home and that he loses this three cents
and cost of transportation besides:
What then will he do with his money?
He must either invest it in property
here or go home with it. He could not
buy gold with it or gold exchange un-
less gold and silver were at par; in this
case there could be no reason for pre-
ferring the one metal to the other. If
gold went to a premium he would have
to pay the premium on his exchange,
thus entailing on him additional loss in
his enterprise of sending us shiploads Of
silver.
''If he invests his shipload of silver
money in our property and business en-
terprises it will at once stimulate indus
tries, awaken enterprises and give us
healthy business and sound currency.
What more could be desired? Every
shipload of silver thus brought here and
invested in productive wealth would
have twofold effect. 1t would bring
unexampled prosperity to this country.
The effect would be panies in the Old
World.
sBusiness there would be paralyzed
for want of money, their prosperity de-
,stroyed. Prosperity here and stagna-
ton in the old countries would force
shiploads of their people to this country
in search of their lost shiploads Of
money. The nations of the Old World
are aware of this. They would see to it
that no such thing occurred; they know
the advantage free coinage of silver
would guarantee us, hence their uniform
predictions that calamity would be the
result instead Of prosperity. They are
not in the habit of giving us trust
worthy advice as to the course we should
pursue in this matter. Washington
Special.
A Defense.
"What's the charge against this man,
offcerY'
"No visible means of support" re-
turned No. 5,070.
81 can't afford to take me wife widm