Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-08-20
THEG0LD ANDSILVER
CONGRESS WARNED AGAINST TAM
PERING WITH THE RATIOS
On which tho Two Thousand Millions Of
silver Now IN Circulation Have Been
Coined--scrious Question.
To ne Editor Of ne Dispatch

40 ute (ftNW W wv Dsopes"''
The President has stated In the best
form possible tho argument in favor OF
the unconditional repeal OF the Sherman
act-a measure which would be the final
step in the demonstration of silver. The
two objections to the act which the Pre-
sident urges are-frst. that its continu-
anoe must cause destruction OF the
parity that is now established between
gold and silver: and. secondly, that 1t
must prolong the exhaustive expectations
OF gold that have been going on from this
country for some time past.
As TO the first objection, does it not
occur TO every mind that the uncondi-
tional repeal Of the Sherman act must in
evitably so depress the price of silver b1l-
lion in the market as to destroy the le-
galy-established and long-existlng parity
which it is so important to maintain
This is q very serious consideration, and
Congress 10 bound, in repeating the act. to
provide some counteroheck to the fall OF
silver bullion that would inevitably result.
Moreover il is is question not only for
the United States. but for oil nations. Our
government is now the only purchaser of
silver in the world. The closing OF the
Indian minis TO the metal puts an end TO
closing of the Indian minis caused a fall
of Is or 90 per cent. in the price of this
metal. The unconditional repeal OF the
Sherman act. by withdrawing from the
market the only remaining purchaser OF
the metal, will produce n like fall OF price.
Will IL be possible to MAINTAIN the parity
of Is to i'll this country, and OF 151I to l
in Europe OF the two thousand millions OF
coined silver now in circulation after the
tail IN price of silver bullion that must en-
suef
on THESE RATIOS.
Let il not be forgotten that all the silver
in circulation in the United States and
Europe has been coined on these ratios.
1t is no hight matter. therefore. to take
any action that threatens these ratios.
tor the amount of legal tender silver
money now in circulation on both contl-
nents is immense; as will be seen in sub
sequent paragraphs; and | regret the ac-
ton of the recent caucus OF silver men III
Congress on the subject of the ratios.
Those on which two thousand millions of
coined silver circulation are already based
ought not TO be disturbed.
IL is fancy of the advocates OF single
standard money that nearly all Europe IS
on the gold basis. and that 1t has been so
continued that the United States Is prac-
tlcally go. but let us look at the statistics
of the subject and learn from them how
grave matter it is TO tamper with the
value Of silver.
GRAND AGGREGATE.
The amount of legal-tender money in
the United States Officially reported for
January /. 1889 is S1,G1l, 1921, 1853. Each
dollar of this large sum is as good a. any
other dollar. the grand aggregate being
composed of SG49. 1884, 20 of gold, S593,-
3G5, 3G5 of silver, and the rest mot including
gold and silver certlficates) S36S, 16S, 1913 OF
legal-tender paper calculations. THIS SIX
teen hundred and eleven millions OF
money "a but little more than one third
gold, and yet no difficulty has been expe-
rienced in maintaining at par with gold
the remaining nine hundred and sixty one
millions of silver and paper money in cir
cuation.
The fat Of the government. its stamp on
the silver coins. conjoined with its legal
tender laws, maintains this parity. Let 1t
be freely admitted that in respect TO me-
tallic money, this fiat should not be en-
ployed too far IN elevating cheaper me-
tai when coined into parity with dearer.
Nav. let it be conceded that even a very
powerful government cannot generally
maintain parity by its mere fiat, between
too money metals. when the bullion value
IN the market of one of the metals falls
very far below its par value. But whether
rightly or wrongly employed ii is the fat
OF government that holds different kinds
of currency in parity with each other on
the basis of legal-tender laws.
CIRCULATION.
As before stated the circulation of this
country stands thus:
Gold COIN ........................ So4S, 1S6,O2O
Silver coins and uncovered paper
money. ACKNOWLEDGEMENTS. 96l,533,f43
OF this latter sum $3.50, 1865 1865 is in the
form of legal-tender silver coins; the
whole 1851 ,533.743 OF silver and paper be-
ing made par in value by the fat Of the
government. Is II safe to assume that the
fat will be strong enough to hold the sill
yer at par when the market value of the
metal Is less than 80 per cent. Of par, and
that of the paper of which currency is
made is nothing ? Is not the Sherman act
the only present safeguard against an in
calculable depreciation in nearly one thou
sand millions of the money now current in
the United States? Would IL not be an
act OF faulty TO repeal without providing
u substitute IN some form!
1t is an old adage that "mlsery loves
company" Under the unconditional re-
peal of the act we Americans would have
the poor consolation of knowing there
would be many sharers in our misery. In
all the countries of Europe which are now
on the gold basis their circulation of gold
CONS is reinforced by liberal addition of
silver and paper money, held at par with
gold BY the fiat of the governments. just
as IN the United States. this augmentation
of the quantity of money in circulation
beyond the amount Of gold possessed 10
an absolute necessity to the commerce of
those countries.
MAKEUP OF THE MONEY SUPPLY.
In his valuable paper on the Monetary
Question of 1892" recently published. Mr..
Ottoman Haupt gives very important
statistics IN regard to the makeup of the
money supply in the world. / need not
say that Mr.. Haupt is one of the highest
living authorities on monetary statistics.
He has made calculations for the end of
1885 and for the end of 1891 of the money
circulation of tho following countries,
VIZ. Austria. Belgium. the British Islands.
France, Germany. Holland. Italy, Portu-
gal Russia, Scandinavia, Spain. Turkey.
other European countries, the United
States and Australia.
LEGAL-TRNDER MONEY IN GoLD-sTASDARp
COUNTRIES.
Deductlng from the total amount given
by him the amounts aDpoTtioned TO Austria
and Russia, as neither of these had the
gold standard, and leaving out entirely his
figures for the end of 1885. We have the
following table of amounts stated in
pounds sterling in circulation at the end
of 1891 of
tfOiu ..s..-...ss.s..+.s
silver coined .................... 320,000,000
Silver fractional cOins........... 0l,0O0,0O0
Uncovered paper money. 24O,00O.0O
Total gold silver and paper. cl,295, 100000
LEGAL-TESDER MONEY IN GoLD-sTASDARp
COUNTRIES.
Stated in dollars instead of pound ster-
ling the makeup of the money circuition
in the United States and the god-standard
countries that have been named is as fol-
lows:
Silver, flu coins. ................. I6OO,OO0,UOO
Silver, fractional coins. .......... 45J,O00.U00
Iucoyarei Daper ------ 900 OOO ono