The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1893-09-29
COMING THE sslGslonAGE.

What is this 'seigniorage' that is talked
so much about in connection with the sill
yer bullion in the treasnryg' afks CORE
spondent Of The Journal. 1t is the excess
of bullion over the amount coined in silver
dol'ars under the operation of the Bland
Allison and Sherman acts regulating the
coinage Of silver The government paid
the market price for the silver it purchased,
bat necessarily coined it, as long as the
coinage continued, On the existing ratio OF
l6 10 I, as compared with gold. II an
ounce Of silver was purchased for 80 cents,
Its coinage value being 81 ,29, the seignior-
age amounted to 80 cents. and this Is called
government profit By some. as il would
be If the value Of silver remained at 80
cents An ounce and the government was
able tc maintain the parity Of the two met
ais Webster defines the term as follows:
Seigniorage is something claimed or
taken by virtue of sovereign prerogatiye;
specifically. charge or toll deducted from
bullion brought 10 a mint to be eoinsd.
John Stuart Mill. one Of the greatest of
the economic writers Of modern timee. sayz:
I'll government. however. throws the ex-I
pense OF coinage. - II reas0na bles upon
the holders, By making a charge to cover
the expense (which is done By giving back
rather less than is received in bullion, and
is called 'ieyying seignioragel. the coin
will rise TO the extent of the seigniorage
above the value Of the bullion.
This is, no doubt. the basis for the claim
o. the advocates Of free silver coinage. that
with such free coinage the price Of
silver would naturally rise 10 its ratio val
ne. That would be the case. perhaps, if
he market price were but little below the
ratio value. bat It is theory that cannot
sand when the depreciation is 20 per cent
or more, as iE the case Of silver at the
present time. The United States has been
buying silver for iiftean years on a con
stantly falling market. According TO re
cent treasury statement the silver bullion
In the treasury has cost the eoyernn1en. on
an average about SO cents an ounce. while
The present price is bit 70 cents or : trife
more. Thus The government has sustained
, net loss Of 20 cents an ounce on all ihe
silver bullion that it has purchased since
1878. ard the .'seignioraget is reduced BY
that figure. II silver continues TO fall the
government loss will Increase rapidly. be
canse it viii attach to every ounce that was
purchased a higher figures.
The idea of coming the seigniorage in
The treasury al the present time means
that the gosernmeat shaI coin into silver
dollars and put into circulation nil the ex-
cess Of bullion over the amount by xeight
which enters into the composition Of the
silver in circnlaiion against IL. coansing
the silver certificates. the treasury notes
issned for the purchase Of silver under the
sherman nci. as silver. dollar fer do lar.
Just Is though they weye silver instead Of
paper dollars. This excess is n present
eaough TO make about 5000. .0o0 silver
dOllars. This cOaid oaly be safe expedi
ens In case The government ecniiaues able
to maintain its declared policy Of main
tanning the parity Of the two metals, even
to the use Of It's credit. If necessary. 10 ae-
eomplish that end MsfzsssApx Joarnai.