Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1895-09-13
TERMS CLEAR TO ALL.
SOME QUESTIONS ANSWERED IN
AN ELEMENTARY FORM.
Monetary Conditions Can Be Reformed
by Restoring Silver to the Place
Given 1t by the COnstitEtion-The
Meaning of Free Coinage.
Readily Understood.

which have been asked need TO be an
swered in as elementary form Us pos
sible.
What is meant by free coinage?
That the owner of gold and silver bui-
lion may take his metal to the mint
and have it coined gratuitously, i. G.,
free of expense To himself. The Gov
| crnment, however in coming the metal
adds 10 per cent. of alloy. which amount
accrues as profit to the Government,
and is designated seignoirage.
Why should this be allowed?
1t is the only method of giving GER
tain, fixed. undertaking value to our
money, that is. to our primary money.
How may money be classified?
% Primary money. (2) Credit or
token money.
What is primary money?
1t is in fact the only real money. 1t
Is that. the volume of which fixes val
ueS. 1t is the money of final redemp-
ton. "All money is a medium Of eX-
change, but only primary money is a
measure of Values
| W hat Is circuit OF token money.
1t is money" which gets its value
by reason of the fact that it can be re-
deemed In money whose value is fixed
and unvarying because of its right to
| free coinage and because it is q legal
! tender
! In what class comes gold?
1t is our only primary money 1t en-
] joys the right of free coinage; % $40
grains of standard gold are worth 81
because the Government will coin that
amount for anybody. stamp it that val
lie and it is declared worth that by the
law. 1t is Il full legal tender.
In which class comes silver?
Prior to 1913. 412h grains of standard
silver were always worth 81, because
the Government treated that much sill
yer In the same way that it trea ted
% $40 grains of standard gold. But,
now deprived of free coinage, no longer
a full legal tender, the silver dollar is
worth 81 because it is reGeemable i'm a,
gold dollar. \ piece of leather made re-
decmable in gold dollar would be
worth as much as the silver dollar now
| is
What. besides silver. is credit money ,
Anything is SO which gets its value
because 1t is redemable in gold money.
Treasury notes. greenbacks. certificates
of deposit. bills of exchange, even bread
tickets might be clasSed as credit mon
ey, in the true sense. They are simply
mediums Of exchange, and have moth
ing to do with measuring values.
What is meant by ratio.
The proportion according to the num-
Der of grains in the gold dollar and in
the silver dollar respectively. BY ratio
! OF 1G TO L is meant that there shall be
| practically sixteen times as many
| grains of silver in a silver dollar as
there are grains of gold in gold dollar
What is meant by standard?
The metal out of which primary mon
ey-that upon which all other must
rests made. We now have a gold
standard.
What is meant by recommendation?
The use of one metal as standard or
primary money.
What is meant by bi-metallism?
The use Of two metals as primary or
standard money-the double stand
| ard'-silver and gold
Has not standard another meaning?
Yes. Standard gold means nine-tenths
pure gold and one-tenth alloy. Stand
ard or coined silver or silver ready for
| coinage has also one-tenth alloy; that
| is, one-tenth of it is some less yalu-
able meal, to keep 1t from wearing out
easily, such as copper
What is meant by legal tender?
| Money which the law declares must
be accepted in payment of debt,
when it is offered by debtor. When
| gold and silver were both allowed free
coinage as primary money, both were
unlimited legal tenders. The Govern
ment reserved the option TO pay in
| either
Has the Government now that "op-
ton" or right to pay in either?
BY construction of the Treasury De
partment, this option has been surren-
dered to the creditors. who may de-
mand gold whenever they choose.
What proportion of credit money and
of final redemption money have we?
More than twO-thirds of our currency
is credit money. The largest estimate
| gives us less than 600 million dollars
of gold. With silver made again prim-
airy money the proportion would be re-
versed. About two-thirds of our money
would then be money of final payment.
Suppose all the creditors of the Gov
eminent should demand payment in
gold ut one time. what would happen?
The Government could not pay two
thirds with one.third. The Government
at present has but S107 100000 in gold.
secured by selling $162 200, 900 in bonds,
and could not to-day on demand pay
g per cent. Of its obligations in that
| metal.
| What is meant by the gold reserve
fund?
A fund of gold supposed to be keep
at about 100 millions in the treasury
as an emergency fund to meet demands
| upOn the stock of primary money.