The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-09-09
A NEW PLAN TO sEsronE SILVER.


appears elsewhere in this mornings
HERALD, in which is developed . plan
for the free coinage OF silver that the
writer thinks will bring US back in
safe and feasible manner to our consti-
tutional double standard. Mr.. Barrows,
who has made close study of the
primary laws on which the science OF
money is based, urges, and we think,
most logically, that inasmuch sc we
have been many years in reaching our
our return to q normal status should not
be made at single bound, but by easy
gradstions, extending over at at least
several years. because of the violent
disturbance OF values which would re-
suit from a sudden change. He insists
that the instantaneous Hhrinkage of our
more than $1,000, 900 standard silver
dollars, to their natural, honest value,
would convulse prices most disastrously.
And yet this, he claims, is what free
coinage. without careful, legislative
safeguards" Gas the platform of one of
the great political parties haze it, means.
Mr.. Bsrrows' plan, as we understand
it. recognizes, first, that the standard
silver dollar is legal and constitutional
dollar; and. second. that it has been be.
deviled by ignorant or wicked legisls-
ton and by vicious practice till it has
been srtifcially, and without any just
reason. doub in value. Therefore he
believes, with all sincere bimetallists,
that the dictates Of common honesty re-
quire that it should DO restored to its
true and honest valus-to the value it
would and ought to have under free
coinage; to the value that it did have
from the foundation of the government
till 1878; namely, the value OF metal
that is In it, and no other. But, unlike
many, whose motives he does not impugn,
be believes that so great change, be-
cause OF it's fsr-resching effects, should
be wrought gradually and not suddenly.
This result. he argues. can be effective
ly secured by reopehing the minis to
silver, each depositor to receive in
standard dollars. the average market
price thereof, for, say, one calendar
month, or more, prior to the date of de-
post, plus smsll percentage OF the
total deposit, and the government to re-
ceive ae seigniorage the balance, which
would be equivalent to the difference
between the market price (now about
SIS cents per fine ounce, and the legal
ratio. which is $l2929. less the small
percentage above mentioned.
1t is claimed that by this plan ~ the
standard would be at once tied to the
general mass of silver Cat the market
rate instead of the legal rate). which
would have thi svery great advantage;
that any further appreciation of
the standard would be prevent
ed; and (2) the small percentage
OF allowance from the seignior-
age, to the depositors. subject to
strict Imitation, would surely but
gradually, and without violent disturb
ance, tend to extinguish the difference
between the present artificial value and
the simple, normal or honest value of
the standard silver dollar.
We do not know how the plan pro-
posed by Mr.. Barrows will strike ex-
perts, but we must confess that TO US it
seems to be based on much more rational
principles than either the Bland or
Sherman arbitrary purchase laws, and
certainly, if, % its author claims, it
would avert the violent disturbance OF
values which would be sure to follow
the passage of an unrestricted free cein-
why all sincere friends OF silver should
not favor its adoption.