The comet. (Johnson City, Tenn.) 1884-1916, 1895-10-17

VI AAANHNN AhNu III AAN lNll III VI uullAplls
They We're made by the act of 1888 Il
legal tender for only -. The Secretary
was authorized to deliver them in sums
amounting to 500, or any greater sum be-
ing n multiple of 500. in exchange for
gold coins The people, in the absence
of any Their small change, would apply
in this way for these small coins, and
they went into circulation on parity
with gold.
The act is still in force and we now
have this small money, which was subse-
Quently made legal tender tor $40,
amounting to about eighty millions q
dollars. Notwithstanding 1t is only Il
legal tender for $40, and is coined at
such a rate as to make two halves, four
quarters, or ten dimes of twenty tive-cent
pieces contain 2S12 grains less silver than
the silver dollar, yet it remains on Il
parity, and answers all the purposes for
which it was intended.
Inc volume of this money is regulated
by the necessities Of the people for money
below the denomination of one dollar. We
have no other money below that denom-
nation except this; and as the people are
compelled to have small money, they ac-
Cept and use it On parity with gold, by
common consent Its coinage is within
the discretion of the Secretary, and he is
governed by the demands Of commerce
for it. When the small money begns to
return to the Treasury and lies there
uncalled for, the Secretary concludes
there is superaoundance, and ceases to
coin it. After a while, when by reason OF
the development of commerce and in
creased population there is renewed
demand for small money, he sets the
mints to work and supplies it. He is
governed altogether by the demand.
There is no fact better established in
the financial history Of modern nations
than that they may safely put into circu'
lation subsidiary coins of less value rela-
lively than standard coins, and that they
will remain in circulation on parity with
standard money, provided the subsidiary
coins ana in amount kept within the linn
/ its of the commercial demand for such
money. This is the reason why | have
! always insisted on the elimination OF al
money below the denomination of $40
/ except silver, so us 10 give wider helC
| for its usefulness. | would then coin il
up to the demand for money below the
/ denomination of SO; and when that de
! mand was satisfied ! would cease it'
! coinage until it was again renewed. IL
this way | fully believe we could utilizl
all the silver we now have coined, and al
no distant day the vast amount of silver
bullion we have purchased at such
/ heavy loss to the country.
The silver Dollar.
We have now coined, and they consti
/ tute part of our circulation, about u,
millions of silver dollars. These silvel
dollars contain each 371A grains of pure
silver, and 41A grains of alloy, maxim.
! 412la grains of standard silver, which il
/ nine-tenths pure silver and one-tentl
alloy. These silver dollars were coineC
at a ratio of IL to !, which means tina
1 23.22 will 90 sixteen times into 3I1l4 o.
/ that the pure silver in the silver dOlla
weighs sixteen times as much as the pur'
gold i'll a gold dollar. These silver dol
lars, like gold, are full legal tender monel
in payment of all public and pri
waite debts, and taxes of all kinds
but they are not standard money
because silver is denied free, un
limited and independent coinage. The.
constitute dependent OF subsidiary money
| And while the commercial value of tn,
bullion out of which the silver dollar i
made is worth but little more than 81
cents, yet this vast amount of silver re
mains in circulation on a parity witt
gold
TGls may be explained, however, yer,
easily. The amount OF silver dollars, al
though large, is limited; the whole doe
not equal the expense Of the government
for one year, by seyenty-fye million dol
lars. So it is possible for the govern
ment to receive every one of these silve
dollars at least once every year on
parity with gold, in payment of its rev
enues As long rs this is the case, an,
the government pays gold on its owl
obligations, it follows that the parit
will be maintained So the equality o
silver with gold is Il mere matter of con
fidence. Where the people have entir
confidence in the ability, disposition an
readiness Of the government to redeem it
obligations in gold, and at the same tim
it receives silver in payment of all reve
nues due it, they will follow the exampl
of the government and receive aver o.
a parity with standard money. How
ever, it is cleNr that the purchasing pow
er of the silver dollar by no means dc
ponds on the commercial value of tn
substance out of which it is made, bu
on the ability and disposition of the GOV
eminent to hqld,it on parity with golC
Therefore the purchasing power Of silve
in the United States, as long as tn
existing conditions are maintained dc
ponds absolutely on the purchasing powe
of gold, and its purchasing power, as W
have seen, is exactly equal to the con
mercial value of the material out G
which it is coined.
There is one important fact whic
should be adverted TO in this connection
Notwithstanding silver is equal in pul
chasing power to gold in the Unite
States, it is not so by reason of il
own merits, but by reason of the police
of the United States, AS the purchasin
power of gold is exactly equal to tn
commercial value of the material out {
which it is coined, it follows that it
the same throughout the word. Hence,
the purchase of commodities or in ii
payment of debts, it can be used ever,
where, and it makes no difference whetht
payments are made by count or b
weight. Not so with silver. Here in I'll
United States our citizens use the silvt
coins on a parity with gold, and they hay
purchasing power far greater than ii
commercial value of the Silver out I
which they are coined, Hence they Il
ways remain with us. If they are wort
in foreign countries more than the 81