The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-09-09

plus ~ oquhi u OlU ounces, WOul0 Dc
coined for the depositor into standard
dollars.
The result in coined money would DO
as follows: One thousand ounces of
fine silver could be coined into 1892. go.
The difference between the market ratio
and the legal ratio. being in the case
supposed, just one-half the total
amount, would be $646,46, which the
government would retain as eeign forage,
less say l per cent, thus: $646 As
$l2 90 equals 1888 "a.
The dspositor would receive in coined
dellars, the market price of his bullion,
1916 46, plus per cent, sl2.92, equal to
1868. SO.
The two amounts equal $1292. 92, the
total deposits. Under the provisions Of
either the Bland or Sherman arbitrary
purchase laws, in the case supposed, the
bullion owner would receive the marke ct
price without the percentage, namely,
| $6i6 46. Under those laws silver in
general exerted no influence, or next to
none, on the standard, go far as prevent
ing its rise, az we now, in looking back,
can see.
In making a small allowance from the
| big government seigniorage to the de-
positor, above the market price. as pro-
vided in the above plan, it ia apparent
that powerful force would be set in
motion that would tend inevitably, but
steadily and gradually. to sxtinguish
the present discount in the gold price Of
silver. The rise OF gold to its present
altitude has been by graduated
steps. Inasmuch as We measure all
our values by that metal, why
should not the most ardeat
y t.ll sak do haV 80 do -
which wrorgtu1y has risen with gold,
should be- brought back to its normal
legal status BY easy stages. because il,
for no other reason, of the violent dis
turbance of property values throughout
the United States which would be
wrought If q sudden change were pre-.
cipitNted, such as free coinage without
restrictions of any kind, would most
certainly bring to pase
A concession to the deposition from
the seignoirage of l per cent above the
current market price would be equiva-
lent to little more than II
cents per ounce. Now II this
allowance were computed only ON the
day of the deposit, instead on the aver
age for several days prior thereto (say
for a month or three months, it 10 plain
that the assimilation OF silver to the
standard and the consequent distur bancs
in prices of property OF sill kinds through.
out the country would be altogether too
violent. Thus, let us suppose for con-
venience' sake, that che allowance were
simply l cent per ounce and the market
pr.ce today we're 81 cents, the depositor
would receive 65 cent?, and the differ
snce between that rate and the legal
rate, $l.2929, to-wit, 64.29 cents, would
go the government as seigniorage.
The market price, in such o case,
would be 65 cents tomorrow; and the
depositor of tomorrow would receive &c
cents, and go on, and thus it would only
be \ question OF some 80 odd days, prob
ably IN less time, when silver and the
standard would be brought together at
the legal ratio. A change so sudden az
this would convulse prices az they were
naver convuleed before, pro baby in this
or any other country; and therefore
ought not to be favored OF permitted.
Our government, after the close of the
civil war (when greenbacks, which CON-
stituted for the time being the standard
outside OF California, were down to 30
cents or less, and all property was nom
inally inflated to double its vAlue), wait.
ed ten years, or till 1875, before it even
that law did not 60 into effect till nearly
four years after its passage, or till 1879,
thus making the change in the prices of
property, resulting from the necessary
change in the standard, as gradual as
possible.
And so every consideration admon-
ishes US that our return to our oonstitu-
tional double standard should be made
by gradual steps. This can be
effected under the foregoing plan,
by extending the time over which the
average market price of silver shall be
computed. Thus if the average price
for calendar month, prior to the date
OF each deposit, were taken, and
one cent an ounce allowance from the
seigniorage and no more were permitted
per month, then the complete change
mad in view would require, more or less,
about 60 months, or in the neighbor-
hood of five years, which. considering
that We have been over 20 years in get
ting into our preseat>uhfortunate cendi-
ton. certainly 10 not excessive. Very
likely radical silver men will view with
impotence plan that requires five
years to be worked out. But they
should remember that it ia now more
than l6 years since the Bland-Alliaon
law was passed and the situation has
been growing worse and worse ever
since, 60 far as the rise OF the stan dard
10 concerned. For the whole gist OF this
silver question, which has been burn
ing question now for 60 many years
throughout tho world, consists really
in the rise OF the value OF money-and
in its necessary sequence the fall in the
relative value OF every OF property.
On the 10th Of October. 1890, the emil
nent bimetallist, M. II. Cernusehi, wrote
me, among other things, as follows: II
believe that the United States will
eventually decree the free coinage of
silver. continuing meanwhile to main
tain tho free coinage OF gold; and l be-
lieve that hereafter they can do this
without danger"
At fret, this seemed to me impossible,
in view OF the wide divergence between
gold and silver. But now believe that
the words OF the illustrious Frenchman
can be made true by the plan proposed
above, which was partly suggested by q
bill introduced in the United States
senate by Senator Allen OF Nebraska
last September. providing for free COIN
age with fixed ssigniorage OF 20 per
cent, and also by an article In the Fort.
nightly Review, pages 566 So, for Octo-
Der, 1898. HENRY D. BARRows.
Los Angeles Sept. g. 1894.