Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1894-10-18
THE SILVER DOLLAR.

The purchasing power of the silver
dollar, which is now equal to that Of
the gold dollar, would be reduced if the
present policy of the treasury were
abandoned. Silver dollars would re-
main legal tender, but that would
not preserve their purchasing power.
They would have the same debt-paying
power as gold, but no debts would then
be paid in gold. Silver, or its equiva,
lent, would be exclusively used to pay
debts, and would have for that purpose
the same power as ut present; but
when used to purchase commodities
its value would be reduced, because
the prices of goods, in silver, would be
raised. The purchasing power of a
dollar at present is the same us that OF
1922 grains of fine gold, whether in
bullion or gold coin. There are 37l4
grains of fine silver in dollar, but it
requires about twice that amount of
silver bullion to purchase 1922 grains
of gold bullion. This simply means
that we are using the gold standard.
If we had the silver standard, the pur-
chasing power of the dollar would be
that of 3714 grains of silver bullion,
which at present is about fifty cents.
The ratio of IL to of gold to silver
supply means that Is ounces of silver
are of equal value with one ounce of
gold. Recently an ounce of gold has
been selling for as much as 32 or 80
ounces OF silver; as the exact ratio
varies from day to day, we call it 80
ounces. Now it is obvious that the
dollar cannot be worth at the same
time the value of the gold bullion which
it contains and the value of the silver
bullion, since these are IN the ratio of
2 to l. 1t may be either, but it cannot
be both. At present it has til, pur,
chasing power of the gold bullion, and
the different kinds of dollars are kept
at a parity, that is, at equal purchas.
ing power, by the policy of the treas
ury department, which gives to the
citizen the sort of dollar which he de
sires. A note which calls for coin is
paid in either gold or silver at the op-
ton of the holder. This prevents gold
coin from going to premium.
Free coinage means that the govern,
ment shall take 3714 grains of silver
worth about fifty cents, and give dol,
lar for it. Whenever that happens il
will be impossible for the treasury to
pay out gold and silver without dis,
tinction. Gold will then only be OBJ,
tainable from private individuals, and
will 60 to premium, while silver dol
lars will have the same purchasing
power as 3714 grains of silver bullion
Free coinage advocates say the price OF
bullion will rise. Possibly it might rise
10 per cent; if so, the purchasing pow
er of the dollar would be So per cent OF
what it is now. If it rose 20 per cent
it's purchasing power would be 60 pei
cent of what it is now. In order fol
the dollar to retain its present purchas
ing power, it would be necessary fol
silver bullion to rise 100 per cent, and
this is extremely improbable. 1t is
quite probable that the adoption of the
silver standard would put up the price
of silver bullion for time. The pas
sage of the Sherman act in 1890 put
up the price of silver to $1.21 an ounce
in about month. Then it began to
recede, and it is now from Ga to Go cents
Probably something of the same sort
would follow free coinage, but in the
end the purchasing power of the dollar
would probably not be materially
higher than the present price of 371A
grains of silver bullion. Our adoption
of the silver standard would slightly
increase the demand for silver, but il
would not be equal to the demand
which existed prior to 1873. Hence the
need of an international agreement as
to the use of silver and its ratio to
gold.-LotiSUiHe Courier Journal.