The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-04-08
Is Ncccssaryat this Timc-..Expcrlcncc
Shows that Our Present Law Is u
Good onc-.Frcc Coinage Would
Retire Gold.

"".S' NV iihciy W w scltlcu ~ III
early day.
l gave to this question considerable
attention when ! was secretary Of tho
treasury some years ago, and tho opin.
ion l then formed has not beon
changed. Tho fullest expression OF this
opinion was presented in the first md
second Of my lectures ut the Cambridge
University in 1870.
Tho most earnest advocates OF tho
free coinage Of silver in the United
States, without regard to the action OF
other nations, are the owners OF silver
mines and tho debtor class, which in all
'ontorprising countries is overwhelming.
ly tho larger class. In all such coun.
tries the borrowers are numerous, the
lenders comparatively few. The Dor
rowcrs, as 4 class, are earnestly in favor
OF n liberal supply OF currency, whether
deprecated or not. The lenders, as O
clasa, arc earnestly in favor OF such no.
striction OF the issue Us will prevent dc.
precautions.
Although money insomeform has been
in use from the earliest ages, there is
nothing the true character OF which has
been so generally misunderstood.
Money is simply q measure OF value,
but to be a correct and reliable measure
1t must have intrinsic worth. Gold and
silver arc precious metals, and the value
OF gold and silver coins depends upon
the quantity OF gold and silver which
they contain. They may have artificial
value conferred upon them by national
%exigencies, but this is always local.
Outside OF the nations in which such
e%Xigencies exist, or are supposed to OK
list, their value depends upon the mar
ket value Of the metals OF which they
arc composed. Gold is largely tho supc-
rior metal, because it is moro beautiful,
not so subject to corrosion, and is fitted
for various important purposes for
which silver cannot DO used.
AL independent nations have their
WI mints, and they may, for homo
use, and to prevent their expectation,
degrade the value OF their coins BY in.
~creasing the alloy; but this does not
affect their current value elsewhere. In
fact. foreign coins do not circulate in
any country. Some, OF course, through
the agency Of travellers, do find their
way into other countries, but they are
either returned. in the course OF trade,
or are sent to the mlnts.
Both silver and gold are needed in
trade, the latter in large transactions,
the former in small, but their compare.
tive value has not been and probably
never will be definitely and permanent
lv fixed. Supply and demand affect
their value as they do everything else.
Gold even has not escaped their infu-
ence. Tho great yield OF the gold mines
OF California lessencd the value of gold
in comparison with silver, but this was
for o very brief period and in q very
small degree, while silver has been SUBJ
Ject to constant fluctuations. The com.
parative value oil the two metals is now,
by international accord; fixed as far as
it can be, one to sixteen so that one
ounce OF gold is worth sixteen ounce,
Of silver, and this will continue to bv
their comparative value, unless new
and rich mines Of one or the other shall!
be discovered. But while this has been
agreed upon, it has been found neces-
sary by the leading nations to limit tho
coinage OF silver or its legal tender value.
Many experiments have been made
in the United States in dealing with
silver. The first coinage act made
fifteen ouncee OF silver equal to one
ounce Of gold, but it was o discovered
that an n OF gold was worth more,
would purchase more, than fifteen
ounces Of silver in those nations with
which the United States had CONNER.
cial intercourse, and that in conse.
quence thereof there was a steady ex
port OF gold, while silver remained ut
homo. To prevent this. by the act OF
1884, the weight OF eagles was reduced
from ,2E7 grains pure, to 232 grains.
This change proved to be too radical.
Silver then became more valuable than
gold, and was exported until scarcely
enough was left for change. To remedy
this the coinage OF dollars was discon.
tinued and halls and quarters were so
reduced by alloy that they remained at
homo.
1t has been found impossible for the
United States, without the cooperation
OF other nations, to give to the two
metals equal comparative value, hence,
the insuperable objection to the free
coinage OF silver. Being the inferior
metal, it would drive gold out of c~ircula.
ton, and We should have for n standard
u metal constantly tluctuating in value
the great prejudice OF all Legitimate
business. Nor is this all. Free coinage
Of silver means m exclusive circulation
of silver coins. BY tho forcing of gold
out OF circulation We should have for n
time, and q long time, not only a depre.
ciative currency, but a %lcssened, instead
OF an increased, circulating medium.
H. were in n position to advise Con.
gross, 1 should say, let us go on as wo
are now going. Let the coinage OF sill
yer go on with q restriction upon its
legal tender quality. Let us profit by
Jul own experience. Let us profit also
by tho action OF Great Britain, the
wisGst OF nations. in which silver coins
have q free and large circulation without
disturbing the supremacy Of gold.
No action upon the coinage question
by Congress is needed, and there should
be non until it becomes necessary to
determine what shall be done to secure
q paper currency. when tho national
banks cease to exist as banks Of issue
by tho redemption OF the bonds by
which their notes arc now secured.
Paper money, il not n necessity, has
been found to be q great convenience
too great to be discontinued. Whether
it shall DO furnished by some new sys-
TEN OF national banks, or by direct
issues OF the government, is q question
that will soon demand tho attention OF
tho wiscst OF our statesmen.
Pardon me for answering your in.
quirics at such length. I should have
said less il l had time at nv disposnl to