The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-05-21

again demonstrated what the history
or the world already showed-that
whenever coinage laws Of any country
permit free coinage OF both metals With
full legal tender qualities at a ratio OF
value which does not conform substan-
tally to their intrinsic or commercial
ratio In the markets of the world, both
kinds OF coin cannot be kept In circu-
lation at the same time.
There never was In our history one
third as much legal tender silver In
use In the United States at one time as
there In now. and IL is used without de-
priving us OF all our gold, which vas
never done before. Silver II not de-
monetixed In this country, but its coin
age has been 50 limited and regulated
by law. and the financial affairs Of the
government have been so conducted
that up to the present time Its purchas-
Ing power has been preserved and Its
circulation, to n large amount. main
tanned concurrently with other forms
OF money. Notwithstanding 1t has been
coined at a ratio which does not con-
form to the real value of the metal
contained In II. In the United states
16 pounds of silver coined into dollars
will now purchase as much as one
RSdii0 VI BOiQ COlucs out tnlS W0ai0 4&ot
be the case under a system Of free and
unlimited coinage on an individual ac-
count.
II have never been. and am not now.
unfriendly to silver in the sense of de-
string to see 1t excluded from the mon
etary system of the United States or
any other country, but know that IT
cannot be kept in circulation along
with gold. but by means of any ratio
the law of any one country may at
tempt to establish between the two
metals. and that the only way to se-
cure use of both at the same time Is
to make one of them a standard OF
value and so limit the coinage OF the
other to the government which issues
them and receives them. for public
dues may be able at all times to main
tain their exchange ability, either d.
rectly or indirectly through the opera
ton of it's fiscal system. 1 am, there
fore, in favor of the preservation of
the existing standard of value with
such use of full legal tender silver
coins, and paper convertible into coin
on demand as can be maintained with
out impairing or endangering the cred
it of the government or diminishing
the purchasing or debt paying power
of the money in the hands of the peo-
pie. This is what / mean by the terms
sound money and in my opinion 1t is
what is meant by an overwhelming
majority of the opponents of free coin
age at the ratio of 16 to !. This is
neither gold monometallism nor silver
monometallism, but IL means that one
standard or measure of value shall be
maintained. and that all forms Of
standard coins in use shall be kept
equal to that standard in the purchase
of commodities and in the payment of
debts.
How long do you suppose the $685.
00o, 900 in gold in this country would
remain here and be used as money un-
der a free coinage policy? The bank
ing and other great financial institu-
tions, which own and hold in their re-
serves much the greater part of this
gold, would at once sell it at large
premium for silver-about 81 for 81
or they would exchange IL for silver
bullion in the market at a ratio of
about 32 pounds of silver for each one
pound of gold, have the 32 pounds of
silver coined into dollars at the ex-
pense of the people, and with this
cheap money pay demands of their de-
positors and other creditors. The mass
es of the people cannot do this, for
they have no gold nor have they any
silver bullion to be coined at the ex-
pense of the government.
'If the immediate effect of the adop-
ton of the free coinage policy at the
ratio of 16 to / would be to contract
currency to the extent of about $685.
900, 900, by withdrawal of that amount
of gold from circulation and from use
as the basis OF notes and other forms
of credit, prices would not even nomi-
nally advance. On the contrary, for
the time being at least. this contrac-
ton would greatly reduce prices be-
cause IL would alarm the country, de-
stroy credit and undoubtedly produce
the most serious financial disturbance
this country has ever witnessed.
"Of course a great country like this,
rich in natural resources. would ulti-
mately recover in some measure from
even such a disaster. but how long a
time would be required to do so no man
can predict. All the mints Of the United
States. IL devoted entirely to the coin
age of silver dollars, could produce
only about $40. 100000 per annum. and.
with free coinage 1t would
require more than Is years to put silver
dollars in place of the gold we now
have and give back to the country the
same amount OF metallic money now
existing. But. In the meantime. we
would have a deprecated standard OF
value with nominally higher prices
after the first collapse was over-on
account OF the reduced purchasing
power of the dollar. and at the same |
time we would have for a long time
fewer dollars TO pay with.
1T Is well known that in 1873 there |
was not a dollar of silver I'm circula-
ion at that date. The only metallic |
or redemption money I'm use here at |
hat time was Gold. which amounted |
10 only s1S5. 900. 900. including what |
The government was using. whereas we |
now have about s625. .00O. 900 in gold |
1925 100000 in gold. and $685.. .652,s7s in |
full legal tender silver. besides about |