The daily herald. [volume] (Brownsville, Tex.) 1892-1897, 1895-07-04

changed the ieCJ ratio between them more
than $50 times IN a single century, and
finally, IL 1873, finding that gold WIS leay-
ing her, and that in ton years her net i'm
ports OF silver had amounted to $3.50, 000,-
COO, stopped the coinage of legal tender
silver, and for 10 years the attempt has
been abandoned in that country.
Many other nations ia Europe and other
parts Of the world have subjected their
people 20 great loss and expense BY their
adherence 90 monetary systems based upon
the theory that a double standard could be
maintained, but in 70 case have they sue
Z Ceeded in keeping the coins Of the two met
ais IN use at the same time, except for very
short periods. Our own country is not
without experienced upon this subject, and
the results here were just the same as they
have been everywhere else.
Previous Monetary Legislation.
Il would be a useless consumption Of
time 20 60 into q detailed account of the
monetary legislation OF this and other coun-
: tries, or to show at length how IL affected
the movements and use of the two metals
by It's repeated failures to conform the le-
gal ratio 10 the actual commercial ratio
between them. The great and impor-
tant fact ~conclusiyely established by the
history Of that Legislation and It's effects
upon the circulation of PIE coins of
the two metals IS that whenever one of
them is |oyervalucd relatively to the
other in the coinage laws. with free coin
age or coinage upon equal terms, and both
are made LEGAL tender, the coins of the I'M
dcrvaluod metal viii be driven out of cir
culation and out Of use as money In the
country where the unequal valuation is
made. The reasons for this are perfectly
plain. Both being legal tenders, the least
valuable coins VIII always be used in max
ing payments and VIII become the meas
urcs Of value in the exchange Of commodi-
ties, ard consequently the more valuable
coins viii be bearded or sent out Of the
country into d market where their real
value win be recognized.
Now, as this is just what has always oc-
curred-at least in modern times, when
commercial relations between different
countries are 50 intimate and the mcanso OF
transportation ERE 50 rapid and cheap
even when The differentiation or Oyerval-
uati0u amounted to,only ] or , per cent, ]
think we are fully justified In concluding
that II the United States alone should
adopt the policy Of free and unlimited coin
age Of legal tender silver at the ratio Of Is
TO /, which would be an generalization of
that metal TO the amount Of 100 per cent,
all tho gold IN the country would be i'm
mCdiately boarded or exported or be held
Is a commodity by SPECTATORS engaged in
the business of buying and selling it 1T n
premium. II 5iis should be- the result, the
free coinage Of silye. would not for q long
time add anything whatever, even nomi-
nally, 10 oar stock Of money. On the con
trary, the iEmcdinte effect OF such u policy
would Ae q contraction to tie extent Of
tGliy one-tatcd 81 our Present volume If
currency by the expulsion cf about $3,J.-
G30,G 0D ia geld, and it would require moro
than - years 90 supply lis Place with sill
yer dollars, even ii our minis coined roth
ing else.
: Revolutionary Policy.
An who lave been or mag be induced
90 give their support u this revolutionary
policy, upon t-AeJssuranco thae tWil give
the country moro money for use il the
transaction ~ business. VIII hc greatly
disappointed. Tor they win lnd, when it is
too kate. thai Instead OF having more mon
~ they viii layc lcss, nnd that il VIII be
dcYrcciatel in value besides The intro
ducrion into toe currency Of a country II
any kind al money about which tiero Is
the least Coui Will always operate 10
drive ont the same amount. or about tlc
Same amount, " letter money. and thus
Leave tho Tccplc with substantially the
sumo yoluma 81 currency they had at tie
beginning. i6c c-t providing f3- She par
chase 81 silver bullion aad thc issue Uf ie-
gal tendc- Treasury rotc- inI1JTncut for.J
was Pas I'd on tie llth day OF July. I5Jo.
and the purchasing clause Cd that act was
appealed Mo-. 1. 1893. VIII. Il remained
IL force United States t%roaSurr notes wcrv
issued TO the a-aagut OF $ij5, g3i. OJ2, and
there We're many people whu believed that
this was making a material and Tcru.a-
mont addition 10 the volume OF our eur
rcucr, but tic official records show that
du-iog the same time tine net exports ef
gold nom this country amounted 10 StO3.- .
8l9,3 yl so that the real addition 10 our
circulation accomplished b. the issue Of
nearly Si5G. GOO. OcO 81 now notes was
about So. 800. 600 during e Te-iud 90 more
than three years. Tho mere apprehension
tias the government would not he able to
maintain tie parity OF the we metals un-
der the policy inaugiratcd by that act
not Cniy d4c-gdi,cdtn he new treasury notes
thcm5aivca, Las the whole volume OF CIR
currency, and gold went out about as flst
as the ucW notes came 10.
While. Therefore, So is not at all certain
that FREQ coinage would ultimately max,
auy considerable addition to orr circuia
tion, 10 is absolutely certain that IL would
give Us a deprecated and |luctuating cur
rencv, and the question is whether the pro
ducars Of cotton. wheat, corn, Lccf, pork.
oil, lard, cheese and Other czrortable ~
ticles viii DE benefited or injured by such
q result. 1t IS an axiom in trade that the
prices If cX.ort.blc products arc fixed il
the foreign market where the surplus is
sold and are fixed in the currency Of that
country according to its nominal value
there. If sold i'm England. for Illustration. ,
The prices ore fixed and paid In pounds,
shiliings and pence, md not in dollars and
cents and consequently, it makes no diff.
ference 70 the foreign purchaser what kind
81 currency the pTolEccr has at home.
The character or value Of the currency in
use in the producing country does not af-
feet the price of the article abroad to II
extent whatever, for the purchaser there
trades in his market and uses his own
currency IN measuring values.
The establishment Of a silver standard
here could not possibly increase the price
OF cotton or wheat or any Other Amprio,-