The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1894-09-20

the United States:' AS early as 1918. the
United States began to recognize that Ham
| the market ratio between gold and silver
that II it were designed to maintain a
double standard a new adjustment Of the
j legal relation of the two metals was neces-
sary. While nominally possessing double
standard, the country really had only one
1 and that a silver standard.
i And in Senate Document No. 10, first SEES
i sion, Twenty first congress, is the following
/ statement: "Our gold coins are Withdrawn
1 from circulation soon after the: are issued
i from the mint
the mint ratio between gold and silver diff
fered from the market ratio, ard that gold
/ was undervalued at the mint we had during
| the years from 1892 to 1884, and especially
/ during the second half Of that period, no
4 gold in circulation, although the nints We're
4 open to the free and unlimited coinage of
both gold and silver.
The Act Of 1874.
been apparent for many years, the coinage
ratio was changed in 1884 from Is to 1898.
As silver had been the standard for forty
years, and the business contracts of more
/ than a generation had been based upon the
/ silver dollar as the stan dard it was deemed
wise. to effect the change in ratio, not by
! making the gold dollar smaller. The amount
of pure gold in the gold dollar was therefore
reduced from 24A grains to % Is grains;
The ratio, as 1 have said, was fixed at
1898. But for the next twenty years the
actual commercial ratio fuctuated between
1859 and 1898; that is, gold was now over
valued. In other words, gold was worth
/ more at the mint than in the market, while
| the opposite was true of silver. In conse-
quence of this fact silver retired from circu-
| lation and gold became the standard, and
has remained so from that day to this. The
! change was made sixty years ago by the
simple device OF changing the ratio.
/. AS you are all aware the middle of this
century was signalized by immense gold
discoveries occurring almost simultaneously
in Russia, Australia and California. The
from an average Of $13, 4s4 900 in the thirties
l to an average of about $133, 100000 in the
tifties. AS a consequence the value Of gold
i phasized still further the difticulty Of keep
! ing silver in circulation. When silver dol
4 lar was actually worth $1.04 man would
hardly pass it out as cOin-there was too
large profit in selling it as bullion.
4 The subsidiary coin (halves, quarters,
dimes, etc. wac at the same ratio as that
for the dollar. AS consequence there was
a great dearth of small change, SO great as
to seriously embarrass business, as Is shown
by the following statement of the Hon. G:
l.. Dunlap, in the Congressional Globe of
''There is, then. constant stimulant to
gather up every silver coin and send it to
market as bullion to be exchanged for gold,
and the result is the country is almost de-
void of small change"
The Act of 1863.
Driven to it BY this lack Of small change,
congress determined IN 1858, in response 70
the unanimous demand of the people,. to
change the size OF The subsidiary coils.
lhe situation 1853 was this: Inc silver
dollar and all subsidiary silver coins had re-
tired from circulation. The annual produc-
tiun or god in the word was about $133,
GOV, 900 Il year, Wndle the annual productlon
Of silver IN the world was less than 49,
100000 a year. The gold coinage CT the
Tinted sta.es alone in 1852 was about SOL
lv1 q ho n 90 was
than 81. 900, 900, of whi,h the coinage Of sill
yer dollars was exacuy - 100 Now, what
heg e Rne DO o tha
, no ratio that they. conld Tx between god
and silver would give them the joint circu
between, them. Who is there within the
, souna of my voice who, had he been a mem
Der Of congress at that time, would have
ton Of god was immensely greater thar
that Of silver, SO congress naturally deter
mined to retain the god standard under
t which they had bean operating for GweatJ
That they did this deliberately and will
this purpose in view is ehoWn by the fol
4 the measure in charge in the house of rep
: resentatiyes Congressional Globe, secont
peeeG ELS 1922
); 81 gold only Gentlemen tail
n about, a. double standard Of gold and silve
. as thing that exists, and that we propos
4 to change. We have had but a sinsl
: standard for the last three or -four years
t pose to let it remain so, and to adapt si]
# Yer to it; and to regulate it by it.
q The principal provisions of the act of 1S5
Il First-The Subsidiary coins were reduce
= in size in order that they might circulat
instead OF being sod as bullion, as had fol
ntf to s5!sP asa hey q ros sS
n not drive the gold out of circulation).
IL But the bill was more significant in it
II omission than in its provisions; for it o1ni
e tel all reference to the silver dollar. TIL
r 10 silver dollars were coined for the pu1
t. nose of circulation. I appeal with conf
+ dence to every MN and woman here Of
m enough to remember the fifties. I kno,
50 that they will hear me out in the statemer
10 that they hardly ever saw a silver dolla
tener hit no ev eh Mas 81
s1.o4.
49, The Act of 1873.
1e Probably no act of congress has ever bee
?e more thoroughly misunderstood and misr.
re resented than the act of Feb. -. 1o7
Ii Statements have been made about it whic
IA to those who know the facts in the cas-
to swer. But so many honest. we'll intention,
or people have heard and believed them, thu
ce have been itsrstod and reiterated
d. so many people who would not intentio
n ally make misstatement and so MAJ
or false notions of finance have been has,
he upon these misconceptions that l deem
= not unworthy or improbable that we spel
10 a short time in considering the actual fac
" in the case.
If For the purpose of bringing the matter
re to 1878 let us take swift glance over VIII
an I have already told you.
re On the establishment of our mint in IT
he the ratio between gold ana silver was fix
nd at 1 to To- This ratio oyeryalued silver a
'es undervaued gold. AS consequence sily
at was brought to the mint for coinage a
,is was used as money because this was t
in most profitable use to which it could be pl
res Gold, being undervalued at the mint. "
is not coined for the purposes of circulate
M, but was sold, whether coined or uncoint
nd by weight in the bullion market
If In 1884 the ratio was changed to Is.
This was an generalization of gold and
he differentiation of silver. As consequeI
ia gold was taken to the mint for coinage a
o. use as money, while silver was sold to
th" silversmiths and silver dealers.
If In 1853 lack of small change drove C,
me gress to adopt a new ratio for the coins
yyo of subsidiary silver.
~ From 1892 to 1884 we had the free and
limited coinage of both gold and silver-fr
because the coinage was done at the
ket pense of the governments unlimited,
ian cause any person could take any amol
o%o1 %r% ,Sr,+o