Capital journal. (Salem, Or.) 1893-1895, 1893-10-06
WHAT IS BlMErALLISN ?

( from speech Of senator John H. Mitchsh.l
The contention OF the bimetallists is
that ID is possible to declare q nxed
ratio of exchange for certain purposes
between the metals when used as
money, debts being paid at the option
Of the debtor ia coins Of either metal
aud that the existence of this hXed
ratio for the purposes Of the currency
will control aud regulate the market
price of the metals so as TO prevent II
from varying in any material degree
from the fixed legal ratio of the cur
rency.
Although firm believer in bimetal-
lism and that kind of bimetallism
which can exist only by placing gold
aud silver on terms of exact cOinage
and legal tender equality, and under
such legislation as will make silver as
well as gold primary money, or money
Of ultimate redemption, and to the end
that steady equilibrium and parity
may be maintained between the two
metals, am loath to cast my vote for
sn increased ratio. The demand for an
Increase in the ratio did not come in
the first instance from the true friends
of bimetallism. The suggestion had
Is birth in antsgonism to such a policy.
While possibly l might be willing to
vote for an increase in the ratio not
greater than % to /, If convinced that
such condition is the only way that ul-
timate legislation can be obtained Civ
ing proper recognition to bimetallism
should do so with the utmost reluct-
ance and for very many reasons.
candidly confess L would much rather
reduce the ratio to 151 to than to in
crease it to 20 TO l; and in doing 80 be-
lieve, could it be carried and bimetal'
| lism with such a ratio firmly estab
Ished, il would advance the real inter
ests of the people of this country, ire
+pective of class, profession, occupation,
Dr condition. The objections to increas-
ing the ratio are to my mind numerous
Il is true the question of the legal re-
lation of silver to gold, while import
ant to be considered, is of secondary
importance. The primal object is th'
reconciliation of silver. The grea
purpose is the undoing of the wrong
Inflicted upon this country and apoI
civilization by the demonetizing act o
1878. But in view of the fact that witt
the exception of Holland, where The
relation to the two metals is, l believe
8 to /, the relation in all European
countries where double standard ha:
any recognition is 151 to l, it woulC
seem to be the part of wisdom in thu
event of a change of ratio in this coun
try, that it should be changed to l54 Il
l, instead of 20 to l. Should the mints
of European countries fortunately b,
again opened to silver. it IS of the ut
most importance that the ratio in th,
United States should not be such as Il
prevent its circulation.
France has maintained the legal ratio
of l54 to for the last ninety years, sine
1913, and carrying as she does owe
| 500, 900, 900 of silver, we could hardl,
expect her TO consent to such a ratio
as would necessitate a recoinage of thi
immense stock. Another weighty ob
! lection to change of ratio from is t
| to 20 to l, it seems to me, is this: w
have today in this country or had oil
the lst day of September, 1898, 4l9, 332,
$50 standard silver dollars, each con
tanning S7ll grains Of fine silver or 4l2
grains of standard silver; SOL ,654, $50 O
which were, September /, 1898, in cir
culation, the balance 1857, ,677 $50 beiuI
in the treasury.
A legislative change in the ratio /
20 to l, brought about By no decrease il
the number of grains in the gold dollar
but by an increase in the number c
grains in the silver dollar, must resul
necessarily in one of two things, ,neithe
of which Is desirable, or, indeed, scarce
ly practicable, and one Of which cal
only be brought about at an expense l.
the government, according to the esti
mate OF the secretary of the treasury, q
$ll2,S66, 1921, The one is to have two
kinds Of legal tender silver dollars il
this country bearing different legal ne
lations to gold; the other is a recoinag,
Of the 4l9, ,S32, ,450 standard dollars nov
in the United States at the expens
Just indicated.