The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-09-09


portance. II IL estimated that Of the en-
tire gold product since $50 more than -
per cent. has bean consumed In msnafact-
ure=. absorbed In Asia or destroyed ey
ABRASION In the ire years isis out OF
total product OF 10 tons IS per cent. 5I4
tons. we're absorbed By non-monesary
uses. leaving only III tons for
coinage. or about So T0o. 90 per annnm.
The annual average amount Of gold avail
able for coin outside Of India IN the forty
three years. is5o-ss. was 81. 350.ooa The
recent increase of the gold product has
raised the annual surplus for coinage TO
about ia tons. SIS Co., 600 per annum. The
mint report for Iss3. just issued, places the
amour: at 81. 81. coo. excluding ABSORB
ton III Russia.
As to silver the facts are even moro en-
barrassing. Dr. soesbeer and other author
ities agree that during the thirty years,
Is5l-s0. the silver absorbed in non-mone-
tary uses or in Asia amounted 10 81, 90
tons. the entire product In the same
time was IS, 90 tons. The worlds stock
of silver coin or monetary supply-oatside
Of India-was diminished, 1900 tons or
$40. 600 COO
Since 1850 the increase of the silver pro-
duct has probably made up for this de-
fciency. provided for the non-monetary
demand and . surplus for monetary use of
about 1900 tons, or about $3.50. 0o0. coo.
which constitutes the entire accession TO
tn. monetary stock of silver for nations
speaking Europeon tongues since 1850, or
S. $40. 900 per annum. But If We consider
the average yield of the mines since 1881
and allow for the current annual demands
for 49, nav zt.~i = ha
past thirteen years margin for coinage
amounting to about !, 500 tons per annum,
or So. Oo0. 900, estimating silver at the ratio
of 1914 70 /, or say 90 pence per ounce. In
these estimates OF the supply of gold and
silver, for coinage, have taken the most
favorable view. DR.. Soetbeer and Prof.
the day. or approached very close to il,
when mining will yield less than industry
consumes"
sUPERFLuoUs COINAGE
Notwithstanding this absorption of the
precious metals for non monetary uses,
the coinage of gold and silver has pro-
ceeded as if the supply were abundant.
The coinage of the civilized nations. ex-
GLIDING India and Mexico, in thirty-fve
years-Is5I-S5-amoun to about $500
million dollars gold and 1850 millions
silver. which is more than six times the
amount added TO their monetary stock
during this period. 1t is evident that dur
ing these years iye-sixths Of this coinage
was superf1uous, and that the coin was re-
coined or converted TO non-monetary
uses. In the three years. iss9-9I, the gold
coinage of the world was $436, 600. 600. The
entire product of gold was 1857 900 900, and
deductlng the amount consumed for nom
monetary uses the amount available for
coinage was only $l2s. 900 900. In the same
time the silver coinage was $425, 000, 600,
while the product was $52l. 600. 900. ani the
amount available for coinage was s40i o00,-
go. Recoinages alone of the principal
countries since 1878 have amounted to about
$1,000. 0o0. 00o In the twenty years ending
1892 gold coinage has exceeded gold pro-
duction nearly $500. 600. 900. The coinage
of the world since 1872 is estimated at Sl4.-
100000. The total coin at the present
time is estimated at s.. coo OOo. 600 Thus
SIS, 0o0, 900. coo, or about 90 per cent. of the
coinage of the past hundred years has been
recoined or absorbed by industry or lost
From this record 1t is obvious that the
time has come for q revision of the coinage
laws, and for the adoption of a new plan in
tary discussions of the past thirty years
have exposed.
PRACTICAL SUGGESTION.
Assuming that the welfare of the coun-
try requires the addition of $780, 00O. 900
annually TO the volume Of lawful money,
or at this time 20 cents per capita for pres
ent population and $40 per capita
for the annual increment, and
that in view of the greater relative
cheapness of silver at this time the pur-
chase of silver for coinage should be at
the proposed rate OF $4,000. 600 per month,
or Sc. 100000 per annum, il will be found
that the seigniorage on this amount of
coinage will amount to SOS. 600, 900, avail
able for the purchase of SIS, 000. 600 of gold,
requiring no more gold to be purchased to
complete the amount of new coin required.
The cost OF the SIS. 0o0. 900 new coin would
be s50,oo0.0Oo. The profit to the govern
ment would be $4,000. 900. The same re-
suit would be secured by the purchase
and coinage of 10000 worth of
silver and 5000. 600 worth of gold
monthly. The issue of SIS. 600 600
of uncovered notes would make up the
sl0o. 000. 600 required. The relative proper
tons of silver and gold would constantly
metals should be as of gold to 49, of
silver equal quantities might be bought
for coinage. and in that event the govern
ment would pay out sT5 0o0. 900 OF money
and replace it by $4,000. 900 new coin.
Ii the non-mcnetary consumption of
gold and silver should maintain the same
ratio 10 production as during the past
fifty years the purchase of $4,000. 900
worth Of silver and gold annually would
take out Of the market fully half of the
annual production of these metals now
available for the increase of the monetary
stock Of the civilized world. It would not
be difficult TO purchase and coin this
amount. bat 10 keep il in the country
afterwards might involve a more difictnt
problem In another field of economic IN
curry. In the long run, however, the
imports and exports of the precious
metals In coin aud bullion would probably
be equal. and generally in the form of bull
lion, At bullion values, as a commodity.
exported only when the demand FOR other
commodities was insufficient 10 pay our
debt abroad. or when wanted abroad for
coinage or non-monetary uses. The
amount added annually 10 our stock Of
lawful money would, ander normal con4i-
lions, remain IN the country. The sx-
portable commodities Of the United states
are now so extensive and so diversified
tlnelading IN theexporis OF ISIS more than
500, COO co in manufactured argleles) that
the depression OF pr.ees which would fol-
low the continuous export OF large
amounts Of the precious metals would lead
TO large exports OF other commodities and