St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-03-05
THOUGHTS ON CURRENCY.
Written for the Globe.l
CHAPTER X.

First-Those that circulate on the
value of the metal in the coin-where
the value OF the dollar is independent oil
the stamp of government. The gold
coinage of the world is of this class. Sc
also is the silver coinage of those cOun.
tries where silver Is the unit and meas
ure of value; but our silver dollars are
plainly not of this class. for they circu
late at fully double the value of the
metal they contain. So also with
French, German. English and nearly all
European silver coins.
Second-A currency that has not in
Itself the value its face calls for, but
can always be redeemed on presenta-
ton. All bank notes are of this charac-
ter. so are all our government issues.
whether printed OH paper or silver,
nickel or copper. How are national
bank notes redeemed? In greembacks
They are finally retired by taking up
the bonds deposited to secure them, but
they can be redeemed at any time in
greenbackS. How are greenOacks re-
deemed? In tax receipts or gold. How
are treasury notes redeemed? In tax
receipts, gold, or silver dollars.
How are silver dollars re-
deemed? In tax receipts only.
Ho" are Bank OF England notes
redeemed? About el6,O00,OJO of them
are redeemed only in tax receipts.
the balance in gold. How is the silver
OF France, Germany. England and all
Tile countries OF Europe redeemed? In
tax receipts or gold.
1t Will thus be seen that our entire
silver currency does not owe Its value as
money, even In the slightest degree. to
the silver that each dollar contains. Its
currency value is due entirely to the
fact that it is received for taxes. 1t is
really nothing but silver greenbacks-
simply government drafts printed on
silver instead Of paper.
what Is the use of buying silver to
print cneckS or drafts on? Paper is
, better and far cheaper.
In fact, both the Bland and Sherman
laws compel the government to make
just rs big a fool Of Itself as an individual
would make OF himself. were he to have
his checks. drafts and notes nicely en-
graved Oh silver. The Bland bill re-
CURES MN to print each dollar on 4l211s
grains OF standard silver. The Sherman
act is little worse. That requires him
to buy gold dollars worth of silver.
Dulld warehouses to put it in. hire DO
J liceimen to guard it from being stolen,
then print the notes or drafts on PAPER,
and pay them out for the silver. The
notes are finally paid either in gold or
tax receipts.
The pile of silver that has been
bought, warehoused,i insured and guard
ed ut great expense is absolutely
worthless SO long as it is left where
it is.
he man who took his grist to mill in
one end of his sack, with q stone i'm the
other to balance the load over his mules
neck, was wise philosopher when COM
pared with John Sherman and the con-
gress and president who passed and
signed his bill. They put stones in both
ends OF the sack and left the grist at
| home.
A mans check is good if he has the
wherewlth to redeem it on presentation,
Printing it on silver, as the Bland bill
required the government to do, won't
help 1t at all; and if he spend a large
part or his substance for things that he
can't use, as the Sherman act REQUIRED
the government to buy 81, O0O, 900 ounces
OF silver each year that it had no use for,
he thus dlmlnlSheS his ability to paw his
notes when presented.
Our silver policy for the past sixteen
years has not added one dollar to the
| foundation OF our currency. Indeed.
about every dollar issued under the
sherman act has driven gold dollar
out or the foundation, while il has
added weight to the superstructure.
To the question then What shall we
do with our silver?" the rational answer
comes, ''Sell it for what it will bring.
| issue greenbackS in place of the dollars.
and for halves, quarters and dimes use
| aluminium coins.
This would give us a lighter, simpler
and less expensive system OF govern
ment issues, while at the same time It's
value as currency would he Just as
| stable.
Those who talk about "the crime
against silver" might as well shed tears
over the 'crlme against mules and stage
coaeheS" when the railway superseded
that cumbersome and expensive method
or travel; or the 'crime against steam
engines that is about to be perpetrated
as soon as the electric motor is a little
! further improved.
| thlnk hear some earnest soul call
OUT. Yes, 1t is expensive to buy silver
TO print government issues on. That is
| true; but Ii we drive out silver, why not
j drive out gold, too?" Well, if any one
were to ask the government 10 buy gold
10 stamp lis Issues OH, we should all say
mat 1t was very foolish move. So far
as am aware, no government has ever
done that. The gold money of the world
| has all been coined On private account
man takes his gold to the mint. gets
1t stamped, and takes it away with him
10 40 WIN 1t Whatever may please him
pest. NO other man is required to take
IL from him unless he wishes.
there can be no serious objection to a
plan that would allow any owner of
silver to take it to the mint. get
it stamped, and cart it away.
just as gold owners do: but
there must not be any law passed COM
| peiling people TO take it unless they
! want 1t. Place silver on the same foot
ing with gold. Stamp either metal for
any one who brings it; but don't put
The government behind either one to
prop 1t up or compel people to take it in
payment of existing debts. And, above
all things, don't compel the government
TO buy 1t to print checks and drafts and
| promissory notes on.
Perhaps the most absurd proposition
yet offered Is that all civilized people
combine and agree to USE silver for their
government issues. international
blmetalllsm," so-called. means that and
nothing more. Think it out for YOUR
self.
how can governments fix the ratio be-
tween gold and silver any more than
they can fix the ratio between wheat
and corn? OF course, any government
can say: 1--WE will give 25.S grains of
gold for every 1925 grains of silver that
any one may bring" just as it might
give bushel of wheat for every bushel
and half of corn. But that would NOT
be fixing the ratio of value, between
the two metals. 1t would simply be
taxing the people to get the gold that it
| swapped off for silver; and It would be
taking the silver for twice what it is
worth. 1t would be fiat spap" for
the owners of silver mines, but death to
the taxpayers.
The real ratio of value between gold
and silver is fixed by the relative cost of
production. ana governments can no
more treg9late" the ratio than they can
regulate" the attraction of grayitati0n
or the path OF the earth around the sun.
Let government issues be printed on
paper. just as every sane man prints his
private issues Cheeks, drafts and notes.
on paper.
| silver ond onid hott, lo