The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1895-12-28
What FREE SILVER MEANS.
AN EXTRACT FROM PRESIDENT cLEVE-
LANDS RECENT MESSAGE,
A Novel and Hazardous Experiment
Acts Of Congress Impotent to Create
Equality = Difference Between A
Standard Of Value and a Currency for
Monetary Use.

Standard Of Value and Currency FOL
Monetary Use.
We present the following extrac
from the Presidents message, being
that portion of the document which
deals with the question OF the fret
coinage of silver:
While have endeavored to max,
a plain statement Of the disordereC
condition of our currency and tn,
present dangers menacing our pros
perity, and to suggest way which
leads to safer financial system,
have constantly had in mind the fact
that many of my countrymen, whose
sincerity | do not doubt, insist thai
the cure for the ills now threatening
us may be found in the single and
simple remedy of the free coinage o.
silver. They contend that our minis
shall be at once thrown open to the
free, unlimited and independent col q
age of both gold and silver dollars
of full legal-tender quality, regard
less Of the action of any other gov
eminent and in full view of the fac,
that the ratio between the metals
which they suggest calls for loo
cents worth of gold in the gold dol
lar at the present standard and only
so cents in the intrinsic worth Of
silver in the silver dollar.
Were there infinitely stronger rea
sons than can be adduced from hop
ing that such action would secure
for us bimetallic currency moving
on lines of parity, an experiment &C
novel and hazardous as that propos
ed might well stagger those who be
lieve that stability is an imperative
condition of sound money.
No government, no human contriv
ance or act of legislation, has ever
been able to hold the two metals to
gether in free coinage at ratio APP
preciably different from that which
is established in the markets of the
world.
Those who believe that our indie
pendent free coinage of silver at an
artificial ratio with gold of l6 to |
would restore the parity between the
metals, and consequently between the
coins, oppose an unsupported and
improbable theory to the general be-
lief and practice of other nations
and to the teaching of the wisest
statesmen and economists of the
world, both in the past and present
and, what is far More conclusive
they run counter to their own actual
experiences
Twice in our earlier history our
lawmakers in attempting to estab-
lisa bimetallic currency undertook
free coinage upon ratio which acct
dentally varied from the actual rela-
tive values of the two metals no,
more than 3 per cent In both cases.
notwithstanding greater difficulties
and cost of transportation than now
exist, the coins, whose intrinsic
worth was undervalued in the ratio,
gradually and surely disappeared
from our circulation and went to
other countries where their real val
ne was better recognized.
Acts of Congress were impotent to
create equality where natural causes
decreed even slight inequality
Twice in our recent history we
have signally failed to raise by leg
islation the value of silver. Under
an act of Congress passed in 1878
the Government was required for
more than II years to expend an
nually at least $24, 100000 in the
purchase of silver bullion tor coin
age. The act of July Ia, 1890. in a
still holder effort, increased the
amount of silver the Government was
compelled to purchase, and forced it
to become the buyer annually of Sd,
0O0,OO0 ounces, or practically the
entire product of our mines. Under
both laws silver rapidly and steadily
declined in value. The prophecy
and the expressed hope and expecta-
tion of those in the Congress who led
in the passage of the last mentioned
act, that it would re establish and
maintain the former parity between
the two metals, are still fresh in our
memory.
In the light of these experiences,
which accord with the experiences of
other nations, there is certainly no
secure ground for the belief that an
act of Congress could now bridge an
inequality of so per cent. between
gold and silver at our present ratio,
nor is there the least possibility that
our country. which has less than one.
seventh of the silver money in the
world, could by its action alone raise
not only our own but all silver to it's
lost ratio with gold. Our attempt
to accomplish this by the free coin
age of silver at ratio differing wide
ly from actual relative values would
be the signal for the complete depar-
ture of gold from our circulation, the
immediate and large contraction of
our circulating medium, and shrin-
kage in the real value and monetary
efficiency of all other forms of cur
rency as they settled to the level OF
silver recommendation. Every one
who receives a fixed salary and every
worker for wages would find the dol.
lar in his hand ruthlessly scaled
down to the point of bitter disap-
pointment, if not to pinching priva
! ton
A change In our standard to silver
monometallism would also bring on
collapse Of the entire system Of
credit which, when based on a stand
ard which is recognized and adopted
by the world of business, is many
times more potent and useful thar
the entire volume of currency and is
safely capable of almost indefinite
expansion to meet the growth o.
trade and enterprise.
In a self-invited struggle through
darkness and uncertainty our humii
iation would he increased bv the con
seriousness that we had Jarted com
paDy with all the enlightened aud
progressive nations III the world. an,
were desperately and hopelessly striv
ing to meet the stress of modern
commerce and competition with 8
debased and unsuitable currency anc
in association with a few weak ant
laggard nations which have silver
alone as their standard of value.
All history warns US against rash
| ey peri menta whieh thro.tan uiolanl