Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1893-07-13


tanned in circulation. The early
Congresses 80 understood the mean
ing of the word.
A History Of Ratios.
The first coinage act. April 2,
1892, named the ratio as fifteen
portions OF silver to one of gold.
These figures were not chosen arbi-
trarily, bnt represented the then ex-
sisting commercial value of the two
metals. Subsequently the action Of
Great Britain, in adopting a single
standard of gold, to some extent
deprecated silver, so that our mints
became closed to gold from Its being
aadorsaiGo1 ia our coinage. IN
order to restore the coinage Of gold
the acts of 1884 and 1887 were
passed, raising the ratio to sixteen
to one, which was evidently con-
tinuance of the undertaking to regu-
late as required by the constitution.
The discovery Of gold in California
in lS47 caused an enormous expan-
sion of gold currency. The amount
ofthat metal produced in the United
States from lS49 to 1890, aggregat-
ed over 81, 800, 900, 900. This caused
some appreciation in the relative
value of silver, which thereby be.
came undervalued in our coinage
and ceased to cigcuIate. No incon-
venience, except scarcity of small
change, was experienced from this,
because the gold production sup
piled all the money demand-and
the more bulky metal was not miss
ed, and was not then produced to
any extent, as compared with gold.
The act Of 1854 gave us our pres
ent subsidiary coins, in which the
silver was greatly overvalued, for
the sole purpose of supplying aud
maintaining in circulation the lesser
coins. In 1873 the silver dollar
having become obsolete, was dropped
from the coinage.
The Acts Of 1879.
We have now arrived at the period
when, in my opinion, not only was
silver made disturbing element in
our circulation-but it also suffered
great damage as money metal at
the hands of its so-called friends.
Not long after 1873 attention was
drawn to the fact that a mistake, in
the opinion of many, had been
made in demonetizing silver, and,
in response to the popular clamor
following thereupon, the act OF 1873
was passed restoring the dollar to
the coinage, but upon terms and
conditions entirely different from
any former practice in our financial
history.
The metal in the silver dollar,
which in 1873 was worth q. .O3 in
gold, had fallen in value by 1878 to
SS cents. In order to CIRCULATE"
the value of the two coins change
in the standard was required and
this Was at least eighteen to one.
Instead of doing this and leaving
our mints open to the coinage OF
silver, congress undertook by its
fiat or governmental power to
make sixteen equal to eighteen.
Here was where the wrong was done
to silver, and the damage inflicted
upon a monetary system up to that
time perfect in its arrangements.
Silver from that period ceased to be
a true money metal and became a
commodity. The obligation upon
the government-so opposed to COM
mon sense-to purchase 81, 900, 900
per month, at any price at which it
might be offered, made this the
dearest market in the world for sill
yer, where it should have been the
cheapest, upon a commodity basis.
1t also exposed the government to
any manipulation or combination
that bullion spectators or mine
owners could organize. The act OF
1890 increased this forced purchase
by the United States to "a, 500, 900
monthly.
silvsr's Steady Fall.
Notwithstanding these heavy pur-
chases, silver has continued to fall
in price. Shortly after the law of
1890 went into effect its price was
raised temporarily, and it reached
sl.21 per ounce, but within a year
from that period it was down to its
then lowest recorded price of SO
cents.
Notwithstanding the excessive
issue of notes on account of silver,
their parity with gold has been main