The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-05-21
HERALD SUNDAY. sg8--sI1TEEN PAGES

n ~ n III VI l. l. - -
two metals since the Oldest times. and there is
always assumed ratio Of price based on pro-
duction. The highest valuation for silver
given was in the time OF Julius Cesar when II
was to aud the reason given is that there
was gold mine at AQuileia and he was collect
during the time OF the early emperorS because
they were collecting the gold of the conquered
world. and silver was the scarcer m stal. And
coming to our own history, our own silver az
the ratio of to IL was under valued to 1858, and
for several years prior to that date we could
not keep it under the effect OF two things: The
Gresham law, and, as Senator Jones says, the
discovery and large production of Russian gold
winch made gold the cheaper money. Here
there was no change in the law or stamp but pro-
duction is assigned as one OF The causes. Then
followed the Californian ana Australian gold.
and silver remained at premium until 1878 when
the effect OF silver ledge mining and the less
production OF placer gold turned the valuation.
Since 1873 as the production of silver has re-
latively increased the price has decreased. and
what has been the effect on our silver dollars?
The law, since 1873 mas made them legal ten
der for any amount. Up 10 50 we do not care
Tor the value or the coin any more than for the
value OF the postal currency. for we never want
redemption and confidence that the government
will make the coins good ii redemption is ever
wanted makes them current The coined
dollars remain in the treasury and no one will
take them. This would not be so il the people
considered the law made them as good
as gold dollars National banks would
people would not be afraid of them, and
there would not be an effort TO make contracts
payable in gold. In fact the Judgment of the
world is that the law cannot make them as
GOOD as gold dollar when the ratio OF pro-
duction changes; if it was otherwise there
would be no silver question and we should be
dealing with imaginary things. We can take
our dollar, one-third of the value of which is
supposed to be made by law, and see what can
be done with it under two states of fact; a
double standard and free coinage here and a
single standard in Europe; q double stand
ard both here and in Europe and with like laws.
and OF course we assume the ratio of produc-
ton, and price of the silver bullion as at pres
ent. In the first case this dollar has no stand
ing in international business and foreign eX-
changes, because those are made on the bullion
basis and coin shipped either way is melted.
for each government makes its own coins and
has its own SeignOrage, and. our dollar melted
would De worth "a cents. 1t has no standing in
the payment of our debts payable in gold and
which have estimated as high as twO-thirdS
OF our whole Indebtedness. hen forced into
the currency in contrast with gold (and we
must remember that there is thus far no con-
trasD it would have no equality with gold as O
dollar in purchases or new credits because
prices would go to the silver basis when they
became adjusted. and the silver dollar would
only buy what 81 cents in gold would buy, and
our gold would be driven out OF the currency
under the Gresham law. In regard to exist ng
dollars without stating the kind. he would
be obliged to take any thing the law called a
legal dollar, whether silver, paper or anything
else; not because it vas worth as much as
some other dollar, but because he had so con-
tracted, and the force OF the law would con-
strain him, though both he and the debtor
knew it was not worth the dollar originally due.
This is the essence of the legal tender deci-
sions 1t is case where force and not value
controls and in the same way if The creditor
does not enforce payment until his claim is
barred by the law OF limitation, he can get
nothing. and though he gets no value the law
constrains him to abide the result. In like
manner the force of habit and confidence will
fora long time cause deprecated money to pass
current, though it is known TO be worth
less than par, and confidence that the
government will make it good, or
the belief that the fluctuations in pro-
duction will again restore value gives cur
rency to it for time; but all these causes
must be distinguished from the assertion that
law can make value. Even in the case of pay
ment of old debts in a deprecated currency. if
the debtors are also creditors to an equal
amount, the currency merely comes around
and the first man who paid the dollar would
gain nothing, for when he got it again he would
be just even and then could only use it for its
real value in a new transaction.
If we assume a double standard, free coin
age and the same laws in the whole world the
result will he the same in the end, though by a
slower process for the effect OF the Gresham
law would be much reduced and there would be
no place where either silver or gold could 20
and have different value. The case is only
theoretical, for commercial nations Will never
agree to such conditions. But if we start with
the idea that value is desire for some
thing for use or ornament the intensity OF
the desire affects value. A starving man, il he
could get no other food, would give \ thousand
dollars for a loaf OF bread and would not sell il
for that sum, and IL would be useless to tell
him the law fixed the price at five cents. So nc
law can make Intelligent men desire glass
beads and diamonds equally; but il they did
mi diamonds Tqr pr1o &C
beads plenty or capable of abundant and che az
production, they might prefer the glass beads
and when glass beads were given 10 the Alas
Kan Indians for seal skins the beads were de-
sired for ornament and were a good currency
perhaps as good as diamonds No one will de
sire a silver dollar which he knows to be
other worth par and he can sell q
gold dollar for use in the arts for nearly It's
value, while the silver dollar will only BRING its
bullion value. He will pay out the cheap dol
lar when he can and hoard the dearer one anc
the discrimination leads to prices based on the
cheaper, TO contracts specifying which cur
rency shall be paid ana gradually to premium
for the gold. 1t is conceded that when there
of prices IS to agree with the cheaper, and il
law makes value the rule would be nonsense
for there could be no cheaper medium. While
the process would be slower the same result
would finally be reached and the law would add
no value to the silver dollar, but would only be
the cause OF its forcible circulation, far as il
old clrCuldte, on even Terms. w QeQ II Is argued
gold has appreciated 30 per cent. in purchas-
ing power, it seems to be a statement that the
two things got apart. and il the law fixes the
value Of two coined metals they could not get
apart, for purchasing power ID the only use OF
money. Professor Price says OF coined money
Tits as a commodity that coin buys and IL is
its value commodity in its own market
that settles how much it can buy This
brief sentence covers the whole subject when
all other Influences, except the effect of law,
are excluded from the consideration, Gold
and silver became money from their adapti-
billty, and this use gave them increased value
II the law can extend the use, other conditions
being equal, it can cause an increase in the
value of silver in all its forms, coined or'un-
coined; but it is denied IL can make 81 cents
worth of the commodity worth u dollar in the
coin. though ii may. to limited extent, force
It's reception for a dollar 1 would not have
deemed it necessary to discuss this at any
length only that the contrary is insisted BY
some persons.
a few figures on the relative production O.
gold and silver for twenty years will show the
true causes of The silver question and show
the remedy, if there is any, must be sought BY
making an increased demand awaiting de-
creased relative production and that storing
silver in the treasury is not such demand as
will help the miner. L do not know of AM
other way TO find the relative quantity of sill
yer and gold required by the world except Il
take the ratio of to Isle or Is, and when eacl
is at par assume they have reached the leve
of quantity. This was practically 80 in 1873
when the production of the gold of tho worlC
was 1916, 200.G Geo and of silver at the coinage