The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-08-12
SILVER AND GOLD.

dearer money metal by the cheaper-was
early observed. The statesmen of the
past have made good use of this fact;
and many times in the struggle to gel
gold or silver have nations changed their
legal ratios.
De Calonne, the French statesman
who fixed the legal ratio of 1 to Is 1-2
in 1855, made it little higher than the
market ratio in order to increase
Frances stock of gold. He reasoned that
if France gave IS 1-2 parts of silver for
1 of gold, in a market where Is Is of
silver were buying 1 of gold, France
would get the coin she wanted.
A very striking illustration occurred
in our country in 1884. At the time our
government was established, through
the advice of Alexander Hamilton, the
ratio was fixed at 1 to Is, and everybody
had the right to have gold and silver
ingots coined at the mint without
charge. That is, there was {" free COIN
ageD of both gold and silver at the ratio
of to 49, This ratio was too low then,
Frances having been fixed at l to Is IL;
and by 1884, when the ratio was | to IS
in Spain, Mexico and South America,
the United States found itself without
much gold Other nations that would
give more silver for it, had the gold.
Thomas H. Benton argued that if We
would raise our ratio to 1 to 1858,
which is very nearly to 16, we could
draw all the gold we should need. This
was done by the law of 1884. The result
justified expectations. Gold flowed in
by the channels of commerce: old chests
gave up their boards; and the mints were
busy. 1t is curious to note that a large
element Of the people, who preferred
the paper currency previously furnished
by the United States Bank, condemned
the gold and derided Benton as Gold
Humbug"
The reader has probably asked himself
already why, if the cheaper metal drives
out the dearer. and the manipulation of
ratio is such an effective means of attract
ing or repelling gold and silver, the
cheap silver money of the United States
has not driven out gold. The answer to
this question, so far as one may pre-
sumo to attempt to answer it, is to be
found in consideration of the currency
of the United States.
IT the reader, on some day when he is
feeling quite rich, will examine the cash
in his purse he will be be surprised at
the different kinds he will find. Besides
the silver dollar, which is very plentiful,
and legal tender to any amount, there
will also be the quarters and halv es,
the dimes, nickels and coppers, which
are called subsidiary coinage, and are
legal tender only for limited amount.
If the reader handles much money
he finds beautiful gold eagle, or double
eagle, or half or quarter eagle; but
piece of gold in circulation is, after all,
quite rare. Passing from the coins to
the bills, he will find great diversity
in them also, although this diversity is
less apparent on first inspection, and
is one that many people never notice.
Indeed, few people read the printing on
their money. The first bill relates per-
haps that "The Union National Bank
of Brunswick will pay the bearer on de-
mand five dollars" and if perused still
further it will be found that this bill !" is
secured by the United States Bonds
deposited with the Treasurer of the
United States" This, then, is the note
of National Bank, which the govern
ment guarantees on consideration that
the owners of the bank shall deposit
enough of certain securities to ensure
against loss. This, then, is not exactly
one important function Of government
money-it is not legal tender. No man
is obliged to take national bank note
in satisfaction of a debt There are
about 165 million dollars worth of these
notes in circulation in the country.
The next bill to be examined has a
slightly antiquated look, and the legend
simply says: "The United States Prom
Use to pay to the Bearer Ten Dollars"
On the back OF it is printed the state
ment that this note is legal tender for all
debts, public and private, except duties
on imports and interest on the public
debt" This then is an old green back"
issued when the government, distressed
by civil war, found itself unable to get
the gold and silver to pay it's soldiers
The government did not take it in
payment of duties, because through the
duties was to be obtained the gold to
pay the interest on the public debt, much
of which was owed to foreigners. AS
late as 1877 there were over $50 million
dollars of these greenbacks in circu-
lation, and they were then, and contin-
ued to be for years after, the principal
portion of our currency. Up to 1878 the
United States had never been able to
fulfil it's promise to pay, printed on the
face of the greenback. But in that year,
having acquired stock of gold, about
1852, 100000, the Secretary of the Treas
ury, Mr.. John Sherman, announced that
whoever had greenbacks could have the
coin by presenting them at the Treasury
This was the resumption of specie
payments" And most people, knowing
that they could have the coin for their
greenbacks at any time, concluded to