Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1895-06-06
SILVER COINAGE.
Seattle Times, May Isl

Of financial knowledge beyond that of the
average man without leisure to make
special study OF the question; but read
the newspapers, magazines ard other
literature upon the subject pretty
closely, and fear for the future Of our
own country because to my mind there
is serious danger of q very great mis-
take resulting from the present agitation
OF the coinage question. 1t is a subject
upon which the people are not only not
informed, but great number are misin-
formed. The advocates OF free silver who
are most manifest are usually unusually
reckless OF the facts Of history and either
through ignorance or possibly in some in
stances through demagogy, actually mis-
state the facts, as does COINS Financial
School,"
You published on the 2lst inst an anti
Gle from the Aberdeen HERALD, which
has in it the kernel Of the possible solu-
ton of the question. Tie suggestion is
to fix ratio between gold and silver and
establish free coinage of both metals at
that ratio, but providing that the two
metals shall be coined III equal values.
That is If the rule is 16 to 1, every person
delivering bullion to mint for coinage
must deliver the two metals in that ratio;
with every ounce Of gold, l6 ounces Of sill
yer and with each l6 ounces OF silver one
ounce of gold; all metal delivered to be
coined in this proportion without surplus
OF either.
Spectators have heretofore coinered
silver coins when they we're at premium
and what has been may be again; where
fore, in guarding silver against depression
by spectators in gold, it should not be
overlooked that the coins of both metals
should be equally guarded from such
manipulations as would depress them or
carry them to a fictitious value, for it docs
not matter which metal goes to a pre-
MUM, the coins of that metal will be
withdrawn from circulation by speculat-
ors if it is possible for the Spectators to
control them.
At the present commercial ratio it
would be possible, unless guarded against,
for silver owners to secure gold coins and
melt them, turning in the metal in bulk
to the mints, with silver bullion from the
shelters, and to repeat this operation un.
til there would be such an enormous ex.
cess of silver in circulation that it would
be possible for Il few extensive institutions
to retire practically all gold coins to theil
Golfers and hold it for big premium
Such perversion Of the purpose OF the Law
proposed by the Aberdeen HERALD could
be obviated only by the government for
bidding the melting of coins by private
persons, either natural or artificial; in
other words, by individuals or corpora
tons, reserving that right for itself solely
The smelters could be prohibited from
buying or handling bullion other than
such as the smelters buy in the ore and
themselves extract. Every smeltel
should put its own stamp upon all the
bullion it produces and the minis should
receive for coinage only such as bears the
stamp Of the smelter. If there was ap
prehension that the smelters might re-
ceive coined or other metal of either gold
or silver, and run it into bullion bars, al
fixing their stamps in violation of law, il
would be as easy to subject them to gov
eminent agents as it is to so subject the
distilleries and tobacco factories.
To my mind it is folly to try and main
tain a parity Of the two metals with ar
unrestricted, unregulated, unlimited free
coinage of both, so long as their produc.
ton varies in proportion from the ratio ol
coined value for whenever there is such
a variation of the production there will be
a corresponding natural variation in the
commercial value and no one can logic
ally maintain the absurd position that
the commercial value OF metal in a col n
does not affect the value Of the coin itself
No statute can repeal this law OF trade.
1t is easy to enact law that declares that
16 ounces Of silver and one OF gold shall
be and forever remain the exact equlva-
Tents of each other; but the laws of sup.
ply and demand-the irrevocable law Of
trade-would not be repealed by such a
statute, and that metal that, because of
decrease Of supply, becomes scarce, fall
ing below the ratio, would become more
greatly desired and speedily command a
premium. Such law would be no more
effective or perpetual than statute de-
claring that three bushels OF oats shall
forever be the commercial equivalent OF
one Dushel OF wheat. Silver and gold are
simply commodities in which men trade,
and as commodities do not in any manner
differ from oats and wheat. 1t is only
when they are set up as measures of value
that they take on another character, but
the new character is distinctive and
wholly divided from their character Of
commodities. AS metals in bulk 1872
grains of gold and 3714 grains of silver
are but articles Of trade, just as a package
OF wheat and package OF oats are; but
when those two pieces of metals have
been wrought into measures of value they
cease to be articles of trade, like wheat
and oats, and become the standard by
which the values Of the grains may be
measured. II the wheat and the oats
had been declared the measures OF values,
the values of the metals would he
measured by them regardless Of the form
in which they are fastened. Now il