The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1894-10-05
instead of being sold as bullion, as had

formerly been the case).
Second-The legal tender quality OF
these coins was limited to S. $50 that they
would not drive the gold out of circula
tion).
But the bill was more significant in its
omission than in it's provisions; for it
omitted all reference to the silver dollar.
The mint still remained open to it's coin
age, but no silver dollars were coined fol
the purpose of circulation. l appeal with
confidence to every man and woman
here old enough to remember the fifties.
l know that they will bear me out in tn,
statement that they hardly ever saw a sill
yer dollar before the war. The silver dol
lar was still legal tender, but no one even
rendered it: because the bullion in it was
worth about S104.
The Act of 1878.
Probably no act of congress has ever
been more thoroughly misunderstood and
misrepresented than the act of Feb. IL
1878. Statements have been made about
it which, to those who know the facts il
the case, seem too foolish and trivial tC
need an answer. But so many honest
well intentioned people have heard an0
believed them, they have been iteratec
and reiterated by so many people WHIT
would not Intentionally make misstate
ment and SO many false notions of financ,
have been based upon these misconcep
lions that deem it not unworthy or un
profitable that we spend short time il
considering the actual facts in the case.
For the purpose of bringing the matter
up to 1873 let us take a swift glance oven
what have already told you.
On the aSta hi bOapt of orr m inf m 17Qt
the ratio between gold and silver was
fixed at 1 to 15 This ratio overvalued
silver and undervalued gold. AS a conse
quence silver was brought to the mint fol
coinage and was used as money because
this was the most profitable use to which
it could be put. Gold, being undervaluec
at the mint, was not coined for the pur
poses of circulation, but was sold, whether
coined or uncoined, by weight in the bull.
ion market
In 1884 the ratio was changed to Is. 49,.
This was an generalization of gold and al
differentiation of silver. AS a conse
quence gold was taken to the mint fol
coinage and use as money, while silver
was sold to the silversmiths and silver
dealers
In 1853 lack of small change drove con
w
of subsidiary silver.
From 1892 to 1884 we had the free and
unlimited coinage of both gold and silver
free, because the coinage was done at the
expense of the governments; unlimited, be
cause any person could take any amount
of bullion of either metal to the mint and
have it coined in money The law, re-
peat, provided for the free and unlimited
coinage of both metals; but that higher
law to which 1 have referred, that law of
all the ages which prompts human be-
ing to take his wares to the best market,
interviewed, and as consequence we had
the actual use, after the first few years, OF
silver only.
The ratio in 1884 oyervalued gold, and
from that time to this, 60 years now-twC
generations-gold has been our actual
standard. The ratio was put too high il
1884 on purpose, as avowed by the gentl e.
man who, more than any one else, was in
strumental in bringing about that result
Senator Thomas III. Benton of Missouri.
By 1858, when the third of our great
coinage acts was passed, it had become APP.
parent to practically all students of finance
that no ratio could be fixed by this coun.
try that would permanently keep the two
lIiOoolo LII COhCuII0uU dllu
therefore, when that act was passed, it
was openly and distinctly avowed that its
purpose was to retain gold as the stand.
ard money and to use silver as a subsidi,
airy coin. To the wisdom of this arrange.
ment practically no one objected.
On the breaking out of the war silver
and gold both retired from circulation
Silver did not return until 1876 nor gold
until 1879
The situation in 1878, then, was this: We
had neither gold nor silver in circulation as
money. They were bought and sold as
commodities. The business world was
anxiously looking forward to the time
when they could have a stable currency,
one that did not fuctuate in value from
week to week, so that one large element
of chance would be removed from bust.
ness enterprises and men could go forward
with more confidence.
The Act of 1873 Was Not a New Act,
it was essentially codification of acts
then in existence. Like the act of 1858. it
omitted all reference to the dollar of 412 1-2
grains of standard silver. In the first draft
of the bill a silver dollar of 1874 grains was
provided for; that is, a silver dollar on the
same ratio as the subsidiary coins, and
subject to the same limitations as to legal
tender. In other words, it was proposed
to substitute a silver dollar that would cir
culate for one that would not and had not
for nearly 40 years. But the argument
was advanced that the subsidiary coinage
would serve every purpose that could be
served even by such a dollar. And so in
the revision of the bill no reference was
made to silver dollar, just as none had
been made in the act of 1858. In the light
of this simple, plain statement, how child
ish appear certain charges. What need
was there for secrecy? Who needed to be
bribed to do so simple, plain and natural a
thing?
Lest there should be any doubt in the
mind of any good, honest soul as to the
amount of consideration given this bill,
let me cite few facts. The bill was
framed in the winter of 1869-70 1t was
brought before the United States senate
in April, 1870. 1t was printed and sent
out to large number of persons in this
and other countries who were regarded as
experts in mintage operations. 1t was
printed ID times by order of congress. 1t
was considered during five different ses-
sions of the house and senate The de-
bates on the bill occupy 1874 columns of
the Congressional Globe. Editorials in
Vulnerable were written about it, 1t was
not finally passed until Feb IL, 1873
That it was carefully considered is
shown by the following statement of Hon.