The herald., 1895-05-08

Gen. A. J. Warner of Ohio argue in favor of
the free coinage of silver. At the close of
ms meeting resolutions were adopted
recommending the formation OF silver
leagues throughout the state and that a
committee of fifteen, five from each OF the
political parties. be appointed to take
charge of the movement.
WASHINGTON. May 7.-Secretary Nor
ton has written letter to James A.
Cherry of Denver in answer to a letter
from the gentleman crittcising some
statements in the interview with the Sec
retary of agriculture printed two weeks
ago. which caused so much comment.
From your letter of April %, 1895, it
appears that you and | perfectly agree in
the fundamental point, namely demand
and supply inexorabfy regulate all value S
whatsoever at all times and in all places.
At what points do we begin to separate
from each other and then go on to con-
clusons so utterly diverse? These points
are only two-the first historical and the
second logical.
First. you assume certain propositions
to be true OF silver. which are not histor-
ically true at ALL but quite the reverse of
true. You say. for instance. Until 1878
the chief use of silver was for coinage
1t had other uses, but the demand for its
coinage purposes was steady and con-
slant.
ION this point you have been mon
strously misinformed. The first federal
coins Of silver were minted in l794 and
of gold in 1875. The ratio was recon-
mended by Alexander Hamilton and fixed
6 fD
was hoped thus to keep the two metals
IN equilibrio in the coinage. But they
would not even come into equilibrio o on
that ratio, still less wodld they stay there.
Only 32l silver dollar pieces were coined
at the American mint in the entire year
of 1905, because the silver was worth more
out of coinage than in it and worth more
for export than for domestic money.
What was the matter with those silver
dollars? Nothing only they were too
valuable. May l. 1906, there came an
order from President Jefferson to the
director of the mint at Philadelphia that
all the silver to be coined at the mint
shall he of small denominations, So the
value of the large pieces shall not exceed
half a dollar.
The reason given by the president for
this order was til a. considerable pur-
chases have been made of dollars coined
at the mint for exporting them and it is
probable further Purchases and exporta-
tion will be made.
''The coinage OF silver dollars thus au
thoritatively suspended at the American
mint was not resumed there for thirty
years. In these few facts, which are Off
cial and unquestaonable, behold the beau.
ties and advantages of double Standard.
The unlimited ooinage of both metals in
an enacted and constant ratio with each
other.
OF two yard sticks OF different lengths
to measure cloth by in the same mark ket. :
By the law of 1854 the ratio was sub
stantially put at 1. to- 49, But this was
going too far III, opposite directions.
Gold was not worth Is in silver in the
markets of Europe Consequently the in
ternational current OF the metals was now
for time reversed. Asilver passing in pref
erence abroad to li4uidate the balances
OF trade and gold couing in small guam
titles to the United Htates where it was
mole than three per cent dearer in silver
than in Europe. By 1858, the ::immsnse
disadvantages of a double standard had
become SO plain to all the thinking people
that congress wisely determined to aban-
don the utterly futile a,ttempt to secure
the parity OF the two metals aad to make
gold the legal tender for debts, except for
su ms of S. and under.
In the second place, Mr.. Cherry, as an
instance of an historical assumption con-
trary to the facts. and natural inference,
allow me respectfully to call your atten-
tion to the use, in common with many
bmetallists, so-called, of the date OF 1878,
as the time OF the demonstration Of sill
yer. Unless l am mistaken the silver
dollar is not mentioned at all, one way or
the other, in the act of 1873. All tn. de-
monetization of silver las + understand it,
that ever came about in this country hap
pened in the law OF 1858, after full discus
sion and practically with unanimity
when congress introduced the subsidiary
silver coinage, of which a nominal dol
lars worth weighed 6.9l per cent less
than the silver dollar. and also took away
the legal tender quality of all silver IN
payment OF debts of over $5 in amount.
Second, you employ over and over
again in your letter the two most COM
mon logical fallaeSes that enter into the
speech of argu mentative men everywhere
namely, putting eau Sc INTO the place Of
effect and assuming that because one
thing happened after another in point of
time, therefore it was the lresult of that
other.
Let us look 'candidly together at the
two or three instances OF this taken at
random. You ask What created de-
mand?' and answer Use ask. in my
return, What creates use?' and Fanswer
Demand
why is 1t that there is so little use Of
silver dollars in this country today, while
there are milliDns upon millions of them
lying idle?
Il answer confidently because there is
no adequate demand them. However.
you not innooently but badly mix up
cause ana effect in this case. Demand in
the commercial sensa is nothing but de-.
sire for something on the part of one
man, coupled with his willingness to pay
something for it satisfactory to the other
who WINS it.
g Use OF that thing, no matetr what
it is. only follows as the demand for it.
You have helplessly put the cart before
the horse. What is the sense OF clam