The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-02-27
THE SILVER QUESTION.
The Bill for Free Coinage Introduced In
congress Majority and Minority
Reports.
MAJORITY REPORT

coinage of silver is provided for, and II is re-
,,,,;rad that il he of standard fineness to meet
the cost of the alloy used, the alloy being all
The expense now exacted ofdepositors OF goig'
Coin notes may be issued on the goid or si-
yer denosited, ifdemanded, instead of waiting
far the coin. The committee raised the max
imum denominations of these notes from 9ooV
10 81. 600 so as to accommodate dealing IN
large transactions and bank exchanges These
notes are made legal tender, redeemabie Ill
coin on demand
The bill provides for the conversion OF our
gold and silver notes into com notes, redeem,
a.le in coin, thus doing away entirely WIN an
LEGAL distinctions. 1t is nelieved this VIII
greatly tend to promote equality IN all re,
spects. There will no longer be issued gold
notes or silver notes. but bimetallc notes,
nayable in either coin at the pleasure OF the
government
The report says it is cOnteuded that the
reason we exported silver bullion while our
mnts were still open to its free coinage was
that our ratio was such that our com ana Dul-
lion silver was worth more as compared to
gold at European miuts than here and that
the same result would again follow our ratio
remaining at l6 to with the French mints
omen to free coinage at l54 to ]. This, 1t Is
held, would prevent European nations, espe
ciaily France. from again returning to the bl-
metallic system TO avoid this the committee
provided that our ratio should be changed to
l5g to | so soon as France, resumes Tree silver
coinage at that ratio.
THE DUMP or SILVER.
The report then under the head the dump
of silver proceeds to a discussion OF the CRY
that free coinage Of silver would make the
United States the dGmpingground for the sill
yer of the world. The report says: The
familiar warning that free coinage would cause
shiploads of silver from other countries TO be
brought here and dumped at our minis III ex-
change for our gold is still urged. How can
this be- under the bill or proposed law ne
sbipload of silver brought to our mints by the
foreigner would be coined into standard dol
lars and these dollars returned to him,
but he could not 90 to our treasury ana de-
mand gold for them. Nor could he com,
pei one of our citizens TO swap HIM gold
dollar for "a silver dollar. If the American
citizen gives him "A gold dollar for Il silver
dollar, that is voluntary trade that no law
onght 10 interfere with. Should the foreigner
take coin notes for his bullion instead OF
coin. the sam thing happens. lie can take
his coin note Ia the treasurer aud demand re-
demption, but the note is redeemable IN com,
and the Secretary of the Treasury could hand
him back the coin struck tIom his shlpioad OF
bullion The foreigner then would ascertain
that he had committed the bunder of bring
cents on the dollar less than II was at home and
that he loses his three cents and cost Of trans
portatiou besides What then will he do with
his money? He must either invest 1t in prop
erty here or 90 home with it. He could not
buy gold with it, or gold exchange, unless
gold and silver were at par; in this CASE there
could be no reason for preterrng The one
metal e. the other. II gold went to Il premium
he would have to pay the premium on his eX'
change thus entaihng on HIM additional loss
in his enterprise OF sending us ShiplOads OF sill
yer. If he invests his shipload Of silver money
in our property and business enterprises, 1t
will at once stimulate industries, awaken en-
lerprises and give us a healthy business and
sound currency
PROSPERITY VERSUS SUMMATION.
What more could be desired? Every
shipoad of silver thus brought here and in
vested in productive wealth would have IA two
told effect. 1t would bring uneXampled pros
perity to this country. The next effect would
be panics in the Old World. Business there
would be parayZed for want OF money, their
prosperity destroyed Prosperity here and
stagnation in the old countries would force
sbiploads oftheir people to come to this conn
try in search of their lost shiploads OF money.
The nations OF the Old World are aware OF
this: they know the advantage the free coin
age of silver would guarantee to us, hence
their uniform predictions that calamity would
be the result instead OF prosperity. They are
not in the habit of giving US trustworthy adj
vice as to the course we should pursue in this
matter. ..,
MINORITY REPORT.
The fuiIowing is the text of the report OF
the minority committee on coinage. weights
and measures, adverse to the Bland free coin
age bill:
The bill reported by the majority of the
committee begins with provision that the
unit of value in the United States shall be
two units-one the standard silver dollar,
worth 20 cents, and the other the gold dollar,
worth 100 cents.
The bill further provides that the standard
gold and silver coin shall be received IN the
United States in payment OF all debts.
The first eight lines of the bill develop Its
true purpose. They provide two different
dollars and IL cOmpulson upon the citizen to
receive either in payment of debts due him.
1t does not require any knowledge of none.
tary or financial laws todemonstrate that the
compulsion of the legal power must force up
on the creditor Il cheaper and debased dollar.
Few debtors will pay 100 cents 10 discharge
their obligations when 20 cents will suffice IN
law.
Section of the bill provides for the retire
ment of gold and silver certificates and the
which presumably means IL note payable III
gold or silver coin, at the option of the gov
ernment This bill therefore, converts all
existing government paper into paper which
may be maid in silver, and leaves no paper
which must be paid in gold. 1t is evidently
intended to clear away all distractions IN
the form of pledges 70 pay gold, and, without
distinct declaration of reputation. to pro
vide an easy track on which we may descend
to the silver mOnometallic standard.
The bill reported by the majority Of the
committee is not alone for the free coinage
of the two metals, but provides that the gov.
ernment itself shall receive all bullion Of
fered, and shall issue its notes for such bull
lion, not at the market rate therefor but at
the coinage value Il xed in the bill. This pro
vision is doubtless inserted in recognition OF
the fact that silver coin is not only debased
10 value in the market, but 1t Is condemned
as money by our own people who refuse to
use more than small fraction of our total
coinage. Because it is not acceptable money
this bill compels the government tc buy sill
yer as bullion and pay for it nearly 90 per
cent. more than its present market value with
a coin note which will be redeemable in gold
40 long as we maintain both metals in circu
lation at the fixed ratio.
THE CONDITION OF SILVER IN THE MARKET.
The true meaning and effect of tins bill
should not be clouded by any misunuerstanu
ing of the present value and conVertibility
of silver The standard silver dollar OF the
United States contains silver which is bought
bv the government for alb ut 20 cents and
stamned a dollar. Any citizen can to-day
nurchase ike amount of silver for 20 cents.
He can purchase 1891 grains of silver bullion
with sill grains Of silver which has been
stamped as dollar by the government. 1t
should be understood that it is not the virtue
of silver which makes 20 cents pass for a dol.
lar, but it is the government stamp, behind
which is the credit of the people, the pledge
of the wealth and honor of the republic.
1t is a fact that in this country the silver
and paper dollars are exchangeable for gold
dollars because the government can and will
exchange upon demand these tokens or prom
;ses for the best dollar in the world. A 10
cent dollar is accepted in our market because
every one has faith that his people will never