Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-03-26

Note-The totals I'm the above table
are mine.
From 1850 TO 1894 the coinage value Of
silver has exceeded that Of gold by from
TO II per cent. The product for the p'
years has been of gold $3.50. l0i 900, and
OF silver. 5000. 0il.0o0.
The wide and repeated fluctuations
which are exhibited by the table show
how misleading and fallaclous an argu-
ment based upon the percentage for any
given period must necessarily be. and
refutes the assumption Of Professor Pur-
year that gold 10 stable" and 'silvsr
constantly fluctuating" one Obvious de-
duction from the table Is that the total
production Of both metals. taken to-
gether furnishes a more stable none
tary basis than either taken separately.
Professor Puryear propounds the ques-
tiOn. why was the present ratio-l6 10
1-adOpted?' and answers, because al
the time of its adoption an ounce OF
gold was worth Is ounces NJ silver
Here he is as far wrong as to the fact
as he was before In his reasoning based
upon isolated facts.
| presume he refers TO the time when
the ratio was fixed IN the United States
which was by the act Of April .. 1872. but
whether he refers 10 this date or the date
at which the ratio was fixed in England
his assertion IS not borne out by the
facts. The act establishing mint was
passed April .. i792. Prior 10 this.
after the continental money passed
out Of use. foreign coin was the
chief legal-tender money in this cOun
try. the Spanish milled dollar being the
mOney-unit and standard of value under
the articles Of confederation. English
guneas Spanish pstolec and doubloons
all circulated here at the ratio at which
| bn, cfv OF In, 70
and this ratio had. In 17l7, been fixed by
act OF Parliament at q shllings TO the
guinea. The frarlers OF the act OF i792
continued the Spanish-milled dollar as
the unit and standard Of value. and en-
deavored TO preserve the ratio then ex-
isting between the current coin. The
act provided for Issuing gold coins, called
eagles. each TO he OF the value Of ten
dollars, or units to contain 2iT 1-2 grains
OF pure gold" or 2i75 grains to the dol
lar. IT also provided for the coming Of
dollars or units. each 10 he OF the value
Of q Spanish-miIed dollar. as the same Is
now current" The act fixed the quantity
Of pure gold to be put into the eagle, and
the quantity Of pure silver 10 be put into
the dollar was ascertained by Hamilton,
then Secretary Of the Treasury. by hav-
ing n number Of Spanlsn-milled dollars
assayed. These were found to contain
81 IL grains Of pure silver. making the
ratio exactly t. for l. This ratio was
fixed with no reference to the relative
quantities produced at that period, nor
to It's marketable. which was controlled
by its currency-vaiue. but solely with
reference to the currency-value ar which
| the two metals were then circulating.
| The ratio OF production at that period. as
shown by the table published by the Di-
rector OF the Mint was about TO Is. and
I'm 177. when the ratio was fixed I'm Eng
land the ratio OF production was about
| to 90. The ratio OF production never
cut any figure so long as the coinage of
both metals was free. the price Of silver
remaining substantially the Same. wheth-
er the ratio Of production was l to D. as
| II was in the JOS or to 81. as IL was
| In the first decade OF this century.
Professor Puryear next lays down az an
incontiovertible proposition that what an
article brings in the open market OF the
world IS its true value-its only true
value" This law Is sound one. but
| the market must be an open market. and
not pulled by artificial restrictions. nor
"beared" by legislative enactment. What
an article brings In the open market or
| the world depends upon the uses for IL;
these uses create the demand, and then
price Is regulated by demand and supply.
Neither gold nor silver can escape the
| operation Of this universal law, though
apparently Professor Puryear does not
| think it operates on a product 80 stable
as gold, though the best authorities and
writer's on tho subject estimate that gold
| derives co per cent. OF its value from It's
use as a money metal, the remaining 40
per cent. from its use in the arts. The
same is true Of silver. as u conclusively
shown by it's present price as compared
with its price in 1873, when IL was de-
monetized by the Uni:ed States, France.
and Germany In 1873 an ounce OF silver
was worth In London So Its free use
as money metal being then taken away,
IL has gradually declined until the ave-
rage price for ten months of 1894 was
approximately CO "a cents, or to 1914 per
cont ~ its former value and a part OF