Mexico weekly ledger., 1895-07-25
POLLARD'S

dity. Under this process, known as
the operation of Gresham's law, the
cheaper money remained in circula-
ton and the dearer money retired
from the country. The bimetallic
standard gave way under the opera
tons of a law as fixed, unerring and
universal in its application as the law
of gravitation, and by this process the
country vas brought to the silver
standard.
1t is difficult to fix the date at which
gold completed its exit, but it cannot
be denied that it was practically out of
circulation in 1872 and wholly out of
circulation by the year 1918, How
ever, there can be no shadow of doubt
as to the truth of the historical fact
that gold went out of circulation I'M
der, and the silver standard resulted
from, the act of 1892. Aside from the
experience of other nations, what are
our free silver friends going to do
with this notable and historical illus
tration of the operations of a uniyer-
sal, economic law within the range of
our W national experience?
But this is not half of my case. Why
did the United States change the ratio
from Is to l to 16 to 1? The reason
which influenced Congress to pass the
act of 1884 throws a flood of light on
this subject. 1t vas an admission OH
the part of tie Government, solemnly
entered of record, that it could not
maintain the blmetailic standard at
the ratio of IS to 1. 1t was an admis-
sion on the part of the United States
that gold had retired from circulation
under the act of 1892, because the
ratio of Is to / was established by re-
ducing the gold in the gold dollar. II
was not only a legislative declaration
that gold would not circulate con-
currently with silver at the ratio of 10
to l, but it was a Legislative declara-
ton that the country had tried the
silver standard and wanted to induce
gold to return TO our circulation. This
may bS icdoOltdDly uCuuSSu VIC
statute itself, but when you read the
report of the Secretary of the Treas
ury and the debates in Congress, then
the evidence is cumulative,
1t was recognized by all sides that
gold had been driven out of ~circula-
ton under the act of 1892, and in that
generation when Andrew jackson was
President and the Congress was Dem
ocratic the preference for gold was
undisguised. The bill to establish the
ratio of Is to l was called at the time
the "gold BILL" The operation of
Gresham's law was thoroughly COM
pretended. 1t was perfectly under
stood that gold retired under the act
of 1892 because it was worth r1ore as
bullion than as money. 1t was per-
fectly understood at the time that 16
ounces of silver was worth more than
one ounce OF gold. It was then known
that the commercial ratio was l5.7 to
l and not Is to /.
JACKSON A GOLD MAN.
1t was openly charged on the floor
of the House that the effect of this act
would be to drive silver out of circu-
lation. Members voted for it and ad-
vocated it believing that it would have
that result. The friends and partisans
of Andrew jackson, the men who
stood with him in opposition to the
Bank of the United States, supported
the bill and passed it over the opposi-
ton of the friends of the bank. When
Andrew Jackson approved that act he
invited gold to return to the circula-
ton of the United States and deiber-
ately gave it a preference over silver
as the better money metal.
There is 10 Disgusting the historical
truth that the act of 1884 was the first
great step which was intended to and
did bring this country to q gold stand
ard. From the day Of its passage gold
began to return and silver to retire
from circulation.
Precisely the same cause which
forced gold out of circulation under