New-York tribune., 1895-05-14

TIE FREE COINAGE OF GOLD.
SOME REFLECTIONS OK THE FUTURE OF THE
YELLOW METAL SUGGESTED by THE
PRESENT INCREASED RATE or

ITS Production.
70 the EIitor Of Tho Tribune
Sir: At the present time. when the question OF
free coinage of SILVER - occupying 50 much Of the
ni,hlic. .at,cntion fnw reflections concerning the
free coinage Of gold may not be altogether inap-
proprate.
Iuder present circumstances the business or
mining gold presents great attractions. ana we
daily hear ~ the discovery Of ne" mines ana the
a.vclopinent of new coll-producing regions Great
Inducements are offered to those inclined to embark
I'm such .,ierpriscs The principal commercial ma
Hons II tho world purchase and coin gold az fixed
prices these prices being about the sam" among
su commercial nations. The Bank of England ac-
cep. all gold brought 10 u for coinage AZ the rate OF
=. i6l r.r ounce 0f gi6 23 fine less snn charge
,,r c,in,v, The United states Mint takes all the
r5'd pr.s.nt,i. payable In con or bars. az pre-
ferrel hy the depositor. at the rate OF s'0'lS per
ounce - lcD nne for bars less charge for parting
onl refining or gS co5jl Per ounce OF 800 ire, pay
able IN dollars.
!, T. cor,pu,..l that the average cost Of prolucing
nm or,oun, ~ goll which. AZ this nxei price. Is
worth 81 - about Go cents. leaving proht or q"
con,s :, ,he miner. while. however. the prc" at
vhirh Che miner can sell ~ coin his gold IL hN'i
,h. annual production OF goll is rapidly Increasing
This increase is due TO the stimulus ~ large proh''
To- she miner and 70 rew ana inpro''i ma
c.i,.r, aal greater economy In the reduction OF
nr.s incluling ihc mos, refractory ana rep'l''uS
II s estimated that the worlds production OF Ho'h
fir 1921 reached the cIo'inohs SUI" VI s'N'''''''V
Win rev dscov@rlcs and with the decreased acilv-
lty I'm mining the production for ls'" VIII propao'y
,o, hc less than se0oVO0oOO How long can the
,r,ce remain fixed with this continued annual IN
crease Snpposing that some wealthy irm In the
produce trade should BID 81 per bush"l Tor an wheat
offered How long would 1t be- before that firm
failed when the cost OF producing wheat was ca
cents per bushel? Applying the same principle to
tine price Of gold. the question naturally arises:
can the present prlcc OF gold be mllntaned or
must II be reduced and IT, free coinage be- su'-
per,lrl2 II gems likely that, under these CIR
cumstlnccs. what has happened {" silver VIII also
happen 10 gold Some nation viii withdraw rs
nxri price others will follow In sef-defence. Coined
gold would still be- a legal tender. the same -
coined silver In France and the United States.
Bur what would be the effect OF closing the mints
against the free coinage Of gold upon iis value as
Aside from the arts. Tor what purpose could it be
used? A. bullion. would II not suffer greater de-
cline than silver? The circulation OF gold has never
been large ana the gold already coined would am
ply supply this circulation Silver is used as cur.
ren'y by all oriental nations ana ~ larsey use
I'm all gold countries. 1t is rs"i 10y every man and
woman in all nations. civilized or barbarOus. Silver
has therefore. a support witch Is lacking TO gold.
New discoveries OF gold. the application Of improved
methods OF reducing ores and the consequent cheap
ening OF the of production clearly indicate that
there must be n rev ljlstment o. gold and silver
which Will reduce the product OF each. there
will be advance In all values. the same a. re
suits excessive Issue OF irredeemable paper
currency.
II does not seem reasonab,e to suppose that one
of the chief causes for the present low rate OF in
terest AMI consequent congestion OF money In the
commercial centres of Europe and the United States
IS due to The enormous production OF gold. and IL
the ncrea sing production OF the yellow metal under
the stimulus of the great profit the miner In sell
ing his product a, fixed r,S, oyer ana above s
New York. May g. 1875.