The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-05-01
SECRETARY SMITH ON SILVER.
FREE COINAGE TO RESULT IN Sill
YER MONOMETALLIsM.

No other Metal WOuld he Presented
at the Mints for Coinage Under the
Proposed system of the SiIverites.
The Ratio of Coinage Must BE Fixed
Upon the Commercial Value of the
Metals in the Market.
Macon, Ca. April sO.-seeretary Hoke
Smith Of the interior department was
interviewed here to-day by a representa-
tive of the Telegraph on the financial
question, and defined the differences Of
opinion on the currency question existing
in the country at present. He thought
that during the next twelve months a
thorough discussion Of the money ques-
tion would be presented all over the
country. This discussion viii be limited.
he thought, to the proposition for the
unlimited coinage of silver at ratio Of
IS to !. The secretary divided the peo-
pie into three classes-gold monometal-
lists, silver monometallists and bimetal-
lists.
He did not think that the gold mono
metallists were strong enough to become
factor in the campaign, but that the
issue would be for and against silver mon-
ometallism. He thought that the free
and unlimited coinage of silver at the
mean nothing more or less than silver
monometallsm, for. if under that sys-
TEN, the price of silver bullion did not
materially advance, no other metal would
be presented at the mints for coinage.
The real question, the secretary thought,
was whether or not the free and unnm-
tied coinage of silver at a ratio of 16
to L would advance the price of silver bull
lion so that it would bear the relative
value Of gold of 10 to l, which is the
proposed ratio. If it would not, then the
country would not have a bimetallic cur
cency.
The secretary reviewed the history of
the country's currency and said that bota
Jefferson and Hamilton recognized the
fact that the ratio of coinage must be
fixed upon the commercial value of the
metals in the market. In 1873 when free
coinage was suspended by the United
States, the silver in a dollar was worth
more than the gold in a gold dollar, but
since that time, the demOnetizatton Of sill
Yer by other countries has allowed ITS
value to drop to the price which 1t viii
bring for manufacturing purposes.
The value of an article must be con-
trolled by the demand for its use and the
supply to be consumed. The facts show
that the demand has practically ceased
while the supply has almost trebled. This
is true in spite of the fact that since 1873,
the United States has coined more silver
than in the eighty. years prior to that time.
can amy one,P asked the secretary,
study these facts without concluding that
~ ellis enormous issue - tac .tustsl,iS S t-ts
was insufficient to steady the fall of silver
during the past twenty years, unlimited
coinage by the United States alone would
no be sufficient to restore its bullion value
now?
"It is therefore, not offensive criticism,
but only a statement of logical conclusion
when insist that unlimited coinage of
silver at the ratio of 10 to means silver
monometallism. Under such law, all
the silver product of the world would turn
to our m!nts and then would come the
silver heretofore manufactured into cheap
wares. Again, silver mining would in
crease and the exhaustion of our resources
would be threatened by the exchange of
silver dollars for the bullion.
with free coinage we would virtually
change our standard to one worth only one
half the present standard and the COM
mercial value of a dollar the world over
would be only fifty cents. While commod-
tiles might sell for twice as many dollars,
their real value would remain unchanged.
The entire country would be confused, un-
til by accurate test. the true value of the
new standard was ascertained. The result
would be cessation of trade and the
cautious business man would involve him
self in no contracts. This uncertainty
would create serious business troubles and
the practical suspension of all enterprise"
He could see no benefit from the change
and none especially to those who worked
for wages because they were always the
last 10 be recognized IN increased wages
under the use of a deprecated currency.
The proprietor of an enterprise would in
sist that the employees should take the
risk. He did not believe the change would
benefit the debtor class because so many
loans have been made on the gold basis
and the debtor would be obliged to go in
to the market and purchase gold with
which to meet his obligations. AS to other
debts, If there were any danger of silver
monometallism there would be no ex-
tensions possible.
Reasoning on these lines, he could see
no benefit even If the change were brought
about One class insisted that the benefit
would be in the inability of the employees
to exact double wages. To these selfish
employers, some benefit might come, but
1t would be found that after the final adj
justment to the new conditions prices
would be nominally increased all around
with no real benefit to anybody.
He doubted the proposition that other /
countries would fall into line, following
the action of this country. If that were
true, the staDdard would appreciate and |
debts contracted during the depreciation !
would increase as the value of silver in |
creased and the class sought to be bene- |
fitted would again be burdened.
The secretary thought the agitation of |
the question was checking the return Of |
prosperity but he hoped the confidence |
that the question would be defeated would |
prevent serious injury.
In conclusion Secretary Smith said: 81 |
have no doubt that the next President of /
the United States will be opposed to the |
unlimited coinage of silver at l6 to J"