The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1895-09-04

The less valuable coin will always
be used aud the more valuable be
boarded or sold in the market.
The same rule was stated in
1926, to the King of Poland, by
Copernicus, the great astronomer,
TO whom the King had referred
the difficulty Of keeping up the
circulation of two metals Dis cur
lency. C%opernicus had never seen
the work OF Oresme.
Queen Elizabeth encountered the
same difficulty in the currency.
The deprecated coin had driven
from circulation the better coin.
Parliament endeavored to remedy
the evil by legislation, but the
Queen and Parliament were una.
BILE to nullity the rule. Her inan-
cier, Gresham, told the cause, viz /:
that the deprecated coin would
drive oui Of circulation the better
coin. This result has since been
known as Gresham's law.
1t has been demonstrated by ev.
cry country that has tried bime-
tallism-by England, by France,
by Germany, by Italy, by Hol.
land, by Belgium and even by
Mexico, whose b%imetallism result
ed in silver monometallism-her
overestimated silver expelled her
underestimated gold. Such has
been our experience. We have
never had bimetallism, only Oh
paper. except at present by the
pledge OF the government to re-
deem the silver dollar III gold.
The law of Gresham is recog-
nized by every f%nancier as being
as true as any proposition in Eu-
clid.' This law points out too
clearly to be disputed what will be
the effect Of free coinage on our
currency. At the ratio of IL to !
it will expel the 1860, 900 900 OF
gold in circulation. There are i'll
circulation $50, 1000, 900 more gold
than there is of silver. 1t is self.
evident from these facts that free
silver, instead Of initiating our cur
rency, will produce a contraction
absolutely appalling in it's strin'
gency. The dollar will become
fifty cents aud the 5000, 1000, 600 OF
silver now in circulation and up.
held by gold, i. Q. the promise OF
the government to redeem it III
gold for the purpose Of securing
Dimetaliism, will be reduced to
$500, 0UO, 900. Our article is too
long to point out the fearful result
of such a contraction. We will
merely recapitulate what is be
You'd dispute.
LIST. The basis upon which free
silver at l6 to l rests, viz: that the
insufficiency Of the currency is re-
futed by the fact that the volume
Of the currency is greater by more
than $500, OOO, 900 than at any per.
iod of our history, and greater per
capita by more than one-third, and
greater per capita than i'll any
country in the world.
"a. The other basis, that free
silver at 16 to l will expand the
currency, is 1efuted by facts as
we'll established as that the world
is round.
Sd. That free silver at Is to !
will result in silver mOnometal'
lism and a contraction OF the cur
rency equal to the amount Of the
gold in circulation, $3.50, OOO, 600,
Therefore a free silverite cannot
be a bimetallist, because free sill
yer at l6 to l is silver monometal
lism. MOI can one in favor Of the
expansion of the currency be a free
silverite, because free silver at 1f
to / will be contraction-a con
traction the sharpest and most
overwhelming in it's ruin than any
financial panic that has ever Oc'
Cured in the United States.
Shall we try the experiment and
risk the result7 Politicians an.
swer, yes! 1t is the best political
hobby upon which an Office seeker
can ride. The people are willing
to pull out the chestnuts. 1t is
their fingers, not ours, that will be
burnt.