New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1893-08-23
The Question of Ratio.

gress and the country to reconsider and
readjust the legally established ratio be-
tween gold and silver. It is true that
the Populists protest against any change
insisting that there is something sacred
in the present ratio, but all the signs
point to a readiness to take up the ques-
ton, unembarrassed by the force of pre-
cedents. On the one hand those who
stand stoutest for gold admit that it
would not be fair to take the present de-
pressed market price of silver as the base
OF calculation, and, on the other hand,
those who stand stoutest for silver con-
cede that the present ratio fixed by law
is not reasonable. There is hope of a re-
adjustment that would eliminate the pre-
sent disturbing uncertainty.
One of the first things done by our
government after this country became
Nation, in the full sense of the term, was
to fix by National law the relative value
of the two previous metals. In 1892
Alexander Hamilton, as Secretary of the
Treasury, reported that one ounce of gold
was worth fifteen ounces of silver, and
his recommendation that the ratio should
be at that figure was adopted by Con-
gress. 1t was in no sense party ques-
ton, all uniting in adopting as the legal
basis what was thought to be a ratio
based on actual cost Of production. -Four
years later (1796) France adopted the
ratio of one ounce of gold to fifteen and
a half ounces of silver. The French
ratio has continued in that country and
the other nations of the Latin union ever
since. This country adhered to it's orr
ginal ratio until 1884, when it changed
to that of one ounce of gold to sixteen
ounces of silver and has remained at that
point ever since. Consequently our gold
dollar weighs 25 $40 grains and our
silver dollar 4124 grain troy, one
tenth in each case being alloy. Other
countries in which silver is legal ten
der vary less than one grain from these
two ratios, the American and theFrench
All are based on substantially the same
foundation, the slight variation being
due to the fact that it would be impossi-
BILE to get at an absolutely exact and at
the same time stable ratio. A shifting
ratio. such as the Tribune advocates,
would involve no end of confusion and
annoyance, with constant liability to
business and industrial paralysis.
About the same time that the United
States suspended the coinage of full le-
gal-tender silver money the nations of
the Latin union did the same, without
coupling with suspension demonetiza-
ton, adopting practically the same poll
cy as was forced upon India this sum-
mer. The first half of the seventh de-
cade of this century witnessed radical
ly new departure in the coinage of silver.
Germany, and later some other countries
of Europe joined England in demonetz-
ing silver. France and other nations Of
her monetary class adopted the COM
promise of retaining the silver they al
ready had, but shutting down ont the free
coinage of any more. .... $780,.
This country began the consideration
of the silver question in 1877. The act
of 1878 attracted no attention at the
time, but when it did the fire bursts out
in great conhagration. There was a
little discussion then of the question of
ratio, but the cry for ''the dollar Of the
daddies'' drowned the voice of reason
and shut out all attempts at readjust-
ment. The battle ragged between those
who demanded free coinage on the old
ratio and those who opposed any coinage
OF silver dollars on any ratio. Finally a
compromise was patched up, the Bland.
Allison bill of 1878, which gave place
twelve years later to the Sherman bill
Limitation Of the quantity, used, rather
than any change Of ratio, was the prin.
ciple Of adjustment alike in 1873 ane
Il 1890. But now it looks as if there nigh
be a careful canvass Of this bottom IN
quirY, What IS the relative cost Of pro
ducing the two medals IN bullion form
It's upon that point that the searchligh'
should now be thrown. 81 Chicago Int
Ocean.