The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-05-10
Free Coinage and Actual Coinage.


Concerning THE SENTINEL's proposition
that the Sherman law should be repealed
at once and the patriotism, intelligence
ana craftsmanship of a democratic con-
gress trusted to take care of the silver
question thereafter our esteemed con-
temporary. the South Bend Times, pleas
antly remarks:
This is the veriest bosh-yes, abomi-
nAble rot, of which a school boy should feel
ashamed were be charged with its author
snip. The Sherman law ought to be re-
pealed, but not without restoring the
Allison-BlRnd law, somewhat improved
upon. If TIE SENTINEL imhgines that il
can wheedle Indiana democrats into the
support of the Wall-st. program of simple
repeal, 1t will find itself very much mis-
taken. No scheme can or will find favor
with the Indiana democracy that con-
templates the demonetization OF silver.
AS the Times has never been wheedled
into the democratic doctrine on the tariff
question it is quite probable that it may
stray into republican heresies on any
other question. The Times, we believe,
always opposed free coinage. That was
Il doctrine of cranks and inhationists
to which it could new er consent. But il
advocates now the republican policy OF
actual coinage by the government. and
this is natural enough, because that policy
is founded on precisely the sane basis as
the republican doctrine OF protection.
The object of actual coinage By the gov
eminent is to furnish an artificial market
for silver. and thereby protect and de-
velOp the American industry of silver
mining. No honest and intelligent ad-
vocate of free coinage believes in that, be-
cause he is interested only in preserving
a safe and sufficient currency, and any
effect on silver-mining is merely incident
al to that purpose, and not an object in
view
For fifteen years we have maintained
this policy of actual coinage with the
avowed purpose of restoring the parity of
gold aud silver as metals, and during that
period the relative value of silver has
steadily decreased. In 1877 the silver in
one of our dollars was worth SO cents in
gold. 1t went steadily on down through
the SOS, and in 1885 finished them,
except the temporary reaction of 1890
Then it went on down through the 70s,
and in 1891 finished them. Today
it is worth 60 cents. If any person can
see that the Allison Bland law or the
Sherman law has in any way tended to
aid in preserving the parity of gold and
silver he must have phenomenal think
tank. At the same time that this decrease
in the relative value of silver mas occurred
all the natural tendencies were for it's iu-
crease, and yet the Times insists that we
shall continue this policy for the purpose
OF keeping up the price of silver What
reason is there to believe that the expert
ence of ensuing years will be different
from that OF past years2
Consider the difference between free
coinage and the actual coinage of the last
fifteen years. Under free coinage JOHN
SMITH brings a million dollars worth of
silver to the mint and has it coined. He
pays the government the cost of coming
and the seigniorsge. and takes away his
money j. g.. he might do so if he wished /;
but he does not do so because he can sell
his silver for the same amount. The fact
that it may be coined into money at any
time keeps the price steady. At the
same time it costs the government moth
ing. If silver is at premium in gold the
free coinage OF both brings gold up to the
silver level. If gold is at a premium in
silver the free coinage OF both brings
silver up to the gold level. Why2 Be-
cause the credit of the government enters
into the coins value. and the government
loans its credit to any person who wants
money coined. There can never be any
loss from this method unless the govern
ment goes out of existence and the new
government formed should not use one
metal or the other for money.
But under the system of actual coinage
the government buys at market udlue. The
only thing in this that can possibly tend
to increase the value OF silver is that a
market is made for silver. but so long as
that market does not consume all silver
produced-i g., so long as the demand
does not equal the supply-the price nee
essarily tonds downward. Under this