St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-23
INTERNATIONAL RATIOS,

The sole purpose of any agreement
among the nations to fix a common
ratio at which free mintage would be
given TO silver is off the same piece OF
legislation from which legal tender acts
are cut. Its sole purpose is to get the
nations to agree that they will oblige
their people to take coin at less than
its value, which means that some one
the government or the owners of the
bullion, will get more for the bullion
than 1t is worth.
We have never believed in the need
OF any such international agreement if
Tie governments care only to perform
their normal duty, and are not infu-
enced by desire to help somebody to
what they are not entitled to and wonld
not otherwise get. The idea, like the
Hat fiat of the greenbackers and the So
percent fiat OF the free coiners, rests on
the assumption that governments can
create values, and that they should do
SO Whenever necessary or desirabl e
This is insisted on in the face of all ex-
perlence slowing that no government
can do it. and what one cannot do be-
cause of the lack of inherent power no
combination of them can do. They
may, indeed, oblige their people to take
these fictitious values in payment of
debts. but they cannot oblige d man to
part with anything he has, whether it
be product or labor, for them.
If the government of the United
States wished to, it could fix a ratio of
pOlnnpR without fha cIi
to the action of any other nation. But
1t could not do this independently and
arbitrarily. 1t would have to consult
MISREPRESENTATION which neither it nor
any nation nor combination of nations
could create or control. 1t would have
to ascertain the commercial ratio, the
relative values accepted by the COM
merclal world, just as if the subject
were wheat or cotton, or any other COM
modify, and, having aseertained that,
certify to 1t by its die on the coins it
gave coinage to. 1t would make no diff
terence what another or all other nations
did. for 1t is the decree of the COM
merclal world-the men VINO produce
and buy and sell-which determines the
ratio OF values, and the DEGREES of gov
ernmentS are, and ever have been. DOW
erless before it. When they would
make base ratio and enforce it with
penalties, the men of commerce quietly
advanced values of their wares to
equaljze the difference, and laughed the
law to scorn.
There is but one honest course for any
government to pursue, and that is to take
the values the world of commerce puts
on the metals, and make that the basis
OF Its coinage act. Its action is moth
ing but the exercise of a conceded
power given it for the convenience OF
; the people. Gold and silver, like other
metals, have value INDEPENDENT of
government. In the early days in Cali
fornla payment was made in gold dust:
its ounce value was fixed in the mar
kets, and scales in every place of ex-
change measured out the quantity
which was the equivalent in value of
the thing bought. If no dollar existed,
bars of silver of differing weights would
pass among the people for money. act
ing as a common denominator for bar
ter. 1t is convenience merely that the
general authority Of the nation should
take the quantity of either metal which
answers in value to its established
coins, and give it general currency by
its stamp certifying to the value of the
metal IN the coin. This and nothing
more is the coinage function of govern
ment, and a want of appreciation of
this is the cause of all the fallacies
which confuse mems minds. If the
commercial value of any coin metal
fluctuates SO that the stamp would be a
falsehood, then it must cease to be
recognized and coined as money metal
until conditions reach a steadiness
which Will warrant resumption at the
former or a new ratio.