New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-07
SIXTEEN TO ONE Is RUIN.
rrDGE WESTTALKS ON SILVER
ZEE COINAGE AT THE PRESENT RATIO
SHOWN TO BE FOLLY.
.nvvrRCIAL AND COINAGE RATIOS sUorr n
AcREE-A HISTORICAL sKETcH-How TO
HAVE HONEST PARITY-EvILs OF
DEPRECIATION-THE COLO
RADIO ADDRESS

RADIO ADDRESS.
rhe essential facts in the Silver Free Coinage
speston have rarely been presented more clearly
e. comprehenslbly than in the following letter from
The Hon wlla n1 IL. West OF Beefontaine. Ohio.
~ james G. Blaine to the Chicago Convention in
tsi points about which Congress viii soon be- in
sommotion will find 1t we'll to read and preserve this
Yaper)
rothe Editor The ribune
Sir: / send statement Of what I understand
a he the grounds and cause of the silver con-
troversy My endeavor has been to make plain
statement for plain people, not too bong to be
read nor too learned to be understood. hope
!. NAV be considered worthy of an insertion in
the columns of The Tribune
THE QUESTION Az ISSUE.
The question. in brief, is this: Ought the
mints Of the United States be opened to the I'M
restricted free coinage of both gold and silver
into standard dollars at their present. coinage
ratio or difference in weight, of to l6, when
the commercial ratio. difference in market
value. between the two metals Is to "a and
the actual value Of the arnsnAt OF metal con-
tanned in one of these dollars ia only two-thirds
the actual value of the amount of metal contained
in the other?
The mere statement Of proposition TO give to
s6 90 cents in value of one metal equal dig
pity power and privilege money with 90
cents in value of another metal awal<ens strong
a sense of its unwisdom. injustice and danger
10 monetary stability and the common welfare
A seemingly to compel to il negative answer
by all who rightly understand its terms and
fully comprehend the consequences TO which its
adoption in practice must inevitably lead That
this question correctly states the issue will first
be shown.
COINAGE RATIO.
BIZ existing statutes standard gold or silver
consists of nine parts pure metal and one pnrt
copper or other alloy. TO give il hardness and
durability: the standard dollar OF gold contains
232o grains pure metal and o.5s grains ALLOW. or
?5s grains standard gold the standard dollar
Of silver contains 25 grains pure metal. and
H.25 grains alloy. or 412.5 grains standard silver
One ounce of gold will coin 800 Ga ounce
Of silver will coin 81 90. The weight of the sill
yer dollar is sixteen times tho weight of the
gold dollar. Their coinsce ratio under. the
existing statutes is therefore ] TO &c. In con-
sidering the bearing of these facts the nues-
ton. the important truth must be borne in mind
that the coinage ratio of the two metals. which
is the difference between the respective weights
Of the two dollars as established by the statutes,
remains constantly the sam" when once estab-
lshed until changcd by statute. regardless OF
fuctuation change in the relative values OF
the two dollars. This ratio has been changed
hut once Originally the gold dollar contained
PATS grains pure metal and the coinage ratio
was l to Is. II was changed in 1884. by re-
ducing the gold dollar TO its present weight
COMMERCIAL RATIO.
The commercial ratio Of the two metals. at
any point Of time is the difference between their
commercial or market values at the same time
II their coinage ratio and commercial ratio were, or
could be, constantly kept equal and the same, the
unrestricted coinage Of the two dollars might
not he seriously Objectionable in that case
they would each continue to be in value equal
10 100 cents. and therefore equally acceptable
IN all business transactions. But the two met,ls
are commodities of mercantile traffic as bullion,
having each its own commercial value. WHICH
is the creation not of statute law. but OF the
ipexorable law of supply and demand, the opera
ton of which no statute law can control or re-
strain. Only demand, which is the desire 70
possess by purchase or barter, coupled WIN the
means and willingness TO crafty H. gives com
mercial value 10 either supply alone regni1''s
that value comparative scarcity enhancing COIL
paratve abundance depressing it. Under the opera
tion of this law the commercial values OF the
,,,o metals arc widely different and subject 70
continual fuctuaton in unequal degrees tneir
divergence sometimes increasing, sometimes lessen
ing Their commercial ratio is therefore not I'M
changing, like their coinage ratio. which Is 'he
creature of statute law, bat uctu1tes from daN W
day. or week to week. or year to year. WIG"
our coinage system was established IN l''E one
ounce of gold was in commercial Vaue equai 10
staon ounces OF silver and hence their commercial
ratio was to 10 The Hamiltons and JeHersohe
and Madisons and other Statesmen OF 'no
period. believing that a SOUNDS and honest HUN
A. raj
tary system required il. made the COINAGE rd''o
n, tho tu,o dollars the same, or 10 10. One
ounce of gold. having in 1884 become IN coh'-
mercal value equal to sixteen ounces OF shVer. OF
ther commercial ratio TO l6. Congress IN tha'
rea, and for the same reason changed the COW
Are ra,io and made it / to Is also. Since theh
their coinage ratio has remained Unchanged al
though their commercial ratio has during sericS
Of Years continued 10 increase. uh'h' az '"c
present writing, it exceeds | TO "a, thus m1kins
the real value of the silver dollar only two-'I"u'
The value of the gold dollar. Is this difference III
the real valne of the two standard doi'ir co'''
ratibe with financial stability, INDUSTRIAL anu
commercial prosperity and the common weifdre'
POWERS OF STANDARD COIN.
Standard coin possesses certain powers dlsthct
f,om and ;ndenendcnt of each other. In" one lceaI
tender nv debt raying. which Is conferred eN-
eusively by statute: tho other conihrciai' VI
purchasing. which exists anterior 70 iho ""'-
PENDENT Of all legislation
Tho same statute which established the coinage
ratio OF the two standard dollars az one " SIN
teen reouired that both should be acccp'eo d.
par in payment of equal and the Same amour, u
debt Notwithstanding one OF theSe uo' "'' -,
become in value only two-thirds the value OF the
other. the same statute compels their acceptance
at par In payment of equal and the same ainyum'
Of debt as before, and for no better reason ,"],a
thus saith the law That law gives t'e "oo'o'
the option to make payment OF his ue". ".',
ind Of money is tIltu