The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-05-02
Free Coinage Of Silver.
BY PROF r. MEANS DAVIS, OF SOUTH
CAROLINA COLLEGE.

BY PROF f.. MEANS OA'lo, VI eOOAa
CAROLINA COLLEGE.
A good many people have never
had an opportunity to study the 6nan-
cial problem carefully, and are at a
loss to understand the meaning
of the different terms employed and
the different consequences arising
from the several measures proposed.
As this question touches orr business
affairs so closely, and as every voter
must render a verdict at the ballot
box between opposing theories, |
think it not amiss to give some facts
and definitions in language that can
be understood by all, aud may enable
them to follow more easily technical
discussions in Congress and in the
newspapers.
One Of the most popular measures
is the free~colnagezef silver. The
Constitution says that coinage is a
sovereign act and that government
alone "shall coin money and regulate
the value thereof" Our government
declares thaA the legal tender silver
dollar shall weigh 4l2 l-2 grains, of
which 81 IA shall be of pure silver.
When government opens it's mint
and coins gratuitously for all, giving
a silver dollar for every mass Of 371
IA grains Of pure silver brought to it,
this is "free coinage" Government
has nothing to do with the amount of
silver brought for coinage, nor does a
single dollar Of it remain in the public
Treasury. All the coins go into the
pockets of those who brought the
bullion. Outsiders get not a dollar,
either, except as they receive it from
the silver miners in trade.
If the government decides to
charge a toll 70: coming, this toll is
called "seigniorage." from the italian
word Seignor;or lord,@who enjoyed
the sovereign right of coming. True
seigniorage is generally a very
Insignificant amount, not more than
of one per cent. intended to
cover the cost Of coinage. But,
indirectly, seigniorage, meaning the
difference between the bullion value,
and the coin value of a metal may be
a good deal more When a lord
charges ten per. cent. for coining,th the
value of bullion will be ten per cent.
less than coin value.
In this case again government has
nothing to do with the amount coined.
1t merely puts it's toll into the
Treasury, and the owner of the hui
lion gets all the rest of the coin.
Thirdly Government may refuse
to open its minis to everybody. 1t
goes into the market and buys a GER
tain quantity Of bullion at the market
price, coins it, and places it into the
Treasury to be paid ont in the course
Of business Only as the government
meets its debts does this money get
into circulation. None of the coin
goes to an individual gratuitously.
Through this method government
controls the amount of bullion coined,
regulates it's market price, for it is
the only bidder, and pockets for the
benefit of the public at large all profits
arising from coinage. 1t can easily
be seen how-this plauedifers in conse.
quences from the first, IS to amount
and as to disposition of profits.
This third plan. was.pursued in the
Bland bill of 1878 and the Sherman
bill of 1890, about which so much
has been said. The former required
the Secretary Of the Treasury to
purchase every month in the market,
at market price, enough silver bullion
to coin not less than two. MOI more
than four, million dollars a month.
This law operated until about four
hundred million dollars we're coined.
The Sherman bill substituted a varia.
ton of the same principle. The
Secretary was to buy at market price
four and a bait million ounces of silver
a month, storing the bullion away,
instead Of coming it, and to pay
therefor Treasury notes redeem
able III coin, (%silver, or gold This
Act was also repealed last Fall afte,
about Sll0, O00, 900 of silver bullion
had been bought under its provisions.
The average price Of bullion dur
ing all this was 81 cents an ounce,
while the coin value Of silver is SIPS
all ounce. Here was a profit of 3e
cents an ounce, amounting in all to
much more than a hundred million
dollars of which some has been
coined, and the rest lies III the vaults.
Tie seigniorage bill vetoed by Cleve.
laud was an attempt to have this
nroft of S55. 600. 900 coined at once.