The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-02-15
READMISSION OF SILVER
BY H. d. BARR0WS

| To the Editor of The Herald The
measure just reported by the Finance
Committee of the Senate, based on the
bill of Senator Jones of Arkansas is on
the lines, so far as it goes, of the plan pro-
posed by me in the Los Angeles Herald OF
September 8, 1894, in that it recognizes in
conjunction, or in the same measure, two
very vital facts, namely: the current mar
ket price of silver and also its legal or
coming price the difference between the
two prices going to the Government as
seigniorage. The very great importance
of this plan consists in this, that it makes
the readmission of silver to our minis
possible, without changing at all the con-
tents of our standard silver dollar when
coined.
This has been the stumbling block
which has stood in the way of return to
our constitutional double standard, in re-
cent years, or since the two metals, gold
and silver, have gone 50 far apart. If
they had remained on a parity as they
were for century prior to 1873, there has
been no time since that date in which
both metals might not have been freely
admitted to the mint without causing
disturbance But since the bullion value
of the gold dollar has become worth more
than twice as much as the bullion value
of the silver dollar, and we have permit
ted our standard of value to adhere to
the dearer metal, contrary to the funda-
mental canons of scientific bimetallism,
the problem OF a return to constitutional
basis has seemed well-nigh insoluble.
Note-With the present gold price of
fine silver at about 50 IL cents per ounce,
the silver value of the bullion in Il gold
dollar is more than $2.17; or the gold value
about AS cents. Thus: .59.5 divided by
129. % equals .46, or 1.23.2) divided by
.595 equals $2:17. To this anomalous and
most startling ratio have the two great
money metals by which all the material
wealth of the world is measured and by
which all the commerce OF the world must
be carried on, been brought by the revolu
tionarv practices OF gold standard or cred
itor nations in this last quarter OF the
nineteenth century! During this period
there has been no such thing known as
stable parity-so absolutely necessary to
commerce-between the two standards of
value. Exchange as carried on between
gold and silver nations, has degenerated
into Il species of gambling during the last
twenty odd years.
The only solution of the great problem
which now confronts the American peo-
pie, and within their reach in the alb
sence of concerted action by other ma
tions, lies in the direction indicated in
Senator Jones bill and recommended by
the Senate Finance Committee, and which
| am glad to see Senator White voted for.
BY automatically connecting our standard
with silver at its market price, without
disturbing its coming price, a modus
vivendi between the. two long estranged
metals will be established whereby they
both will steady each other; gold will no
longer rise, and silver if it has fallen,
will no longer fall, and the material
wealth of the world, which depends on
the rise and fall of these metals, will no
longer be subjected to their extreme
fluctuations. And furthermore a begin
ming will have been made towards bring
ing them together at permanent and
equitable ratio.
But there is one danger which the
Jones bill, so far as reported in the press
dispatches, does not guard against. If
silver is received at the mint without
limit today-say at 60 cents an ounce, the
price in the New York market-what
should prevent gigantic combination of
spectators from putting the price up to
IS or 20 or IS cents tomorrow, and thereby
compelling the Government to concede
them a profit OF $50 600 on each million
ounces deposited in the mint? The mere
profit, however, which they would thus
import compared with the violent effect
such sudden changes in the price of silver
would have on our standard, and, as u
necessary consequence, on all our prop
erty. suppose the price were arbitrarily
forced up to 70 cents per ounce, in very
short time what would be the practical
results?
Our standard which now adheres to
gold, would suddenly be dragged down
from the gold level-that is to say, gold
would Immediately go to premium of at
least rs per cent Off the price of silver were
held for any length of time at Is cents);
and if the price was forced still higher, or
to the price called for by the legal ratio,
namely, $l.23 per ounce that would mean
that we were plump on the silver stand
ard, in which case gold would go to 200,
and all property would very soon double
in nominal value. And all this could
come about in very short time, unless
regulated ''by careful legislative safe
guards" suggested what in my opin-
ion those safeguards ought to be, in the
practical plan which l proposed in The
Herald of September 8, 1894.