The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1895-10-09
BURROWS POSITION.
Fae MICHIGAN SENATOR ARGUES
AGAINST FREE COINAGE.

Z. of Having Two DOLLARS Of Different VAL
uss-Evils of q Silver Basls.
In an address, delivered at Bay View,
Mich, Senator Burrows OF Michigan
vigorously opposed the free coinage fal.
lacy aid upheld our present financial
system. After reviewing our monetary
legislation he said: ii
I'm the first place the free md IN
limited coinage of silver at 10 TO !
would in my Judgment expel from otir
eircnlatios not only our entire volume Of
gold, but every dollar OF paper money
r~edcemable in gold, andcause q c%ontrac-
tisn Of she currency. and q resultant
pdnic tho like. of which has not been
seen in this generation.
"This would follow as the inevitable
result Of that law Of monetary science
which where two moneys arc issued of
unequal value the cheaper will always
expel the dearer from circulation. 1T
certainly needs no argument to demon
sthrate the truth Of the proposition that
if.two dollars ~metsued, Il worth so
cents and the orher 100 cents. the 90
cent dolby will be the only dollar, in
circulation and the 100 cent dollar Will
b6 boarded by the banks and individuals
Hntil the whole volume of such currency
entirely disappears, This law is. OF Il
yersal application and has its origin in
human natufe itself. No debtor owing
500 would discharge that indebtedness
in tho more valuable Of two moneys. He
would surely make use OF the cheaper
and retain the dearer: 1t was the knowl-
edge of this law that guided the fathers
in fixing the ratio In the beginning at
10 to ].
"They knew that dollars Of unequal
commercial value could not be made, to,
circulate permanently side by side, and
so, having, ascertained that 94A grains
of pure gold Were Of equal value with
s7I4 grains,of pure silver, they pro
vided for the coinage Of these two met
ais into dollars ut the ration of IS to l.
But tire truth of this principle has been
demonstrated over and over again even
In st.r own history. The gold and silver
coins issued at the ratio of 10 to1 M
der the act of 1893 shortly became of
ntGqfal .eemfsetcial value, the bullion
IN tie gold dollar Being Of greater value
.eaaaH lie hnllieu in the silver dollar.
Ihs ,sifSey dollar became cheaper than
ais gdaA doiisr, and the consequence
Nhs that silver alone. circulated Qnd
geld gradually disappeared: INDEED,
and for the sanae reason, the coinage OF
gold decliued, for tho 24A grains Of
.pategold provided for in the gold dol
lar yace worth more ~uncoined than
.sha1sbinrd, and therefore Its coinage
natafally ceased, and silver bullion
alone found its way to the minis OF the
United States.
1T remains only to'be inquired what
would be the probable effect Of adopting
sfe silver dollar Of 3714 grains as oul
'aagle standard of yalHe. The first ant
host patent result. as already noticed
would be to drive from q circulation
every other dollar of superior value
whether of coin Or paper. Our $780,
900, 900 Of gold, constituting one-third
Of the entire volume Of ~ money
would be quickly eliminated from on
JCirculation by being boarded or sen
abroad, followed by the retirement o
our $500, 900, 900 Of paper currency re
deeniable in gold, producing a contrac
ttion Of the currency, unexampled in on
history, Of over 81, 900. 900, 900, to b
followed by q financial CONFUSION IN
,precedented in modern times. 1t vii
not do to say that with free md unlih
tied coinage this vacuum would b.
quickly supplied, for 1t would requir
20 years, with the present capacity o
our mints, to replace this vast yolum'
of currency with silver.
''This consideration alone ought to
sufficient to deter Us. from venturin,
upon such o hazardous policy. Nor
than this. Tho silver dollar Of GT1!
grains produced under free coinage ant
not maintained at o parity with the gol'
dollar, as it surely would not be, would
Is we have seen, at once sink to the leve
of its bullion value and be worth onl,
about 80 cents. Every dcpositor in say
ings, national and state banks, the hold
srs of policies in life, fire and all othe
insurance companies, investments !
loan and building associations, represent
ed by a great body of people numberin
more than 90, 900, 900, would be force
80 receive in return for their deposits
premiums and investments a dollar c
only one-half the value Of that wit
which they parted, to the enormous an
f%ncalculable advantage Of these grea
corporations. Suppose al importer {
foreign goods should become indebted {
the government of the United States
the sum of SO, 900 for customs dues
what would prevent him from purcha
ing $1,000 of silver bullion and unde
FREQ coinage converting it into 1000
silver dollars, and with these liquidat
the Indebtedness to- the government
Every pensioner would find his meagt
stipend lessened one-half, and many {
them would be reduced to beggary. NJ
<, only this, but all the recipients Of fxe
salaries, every clerk, teacher. railwa
employee and. receiver Of q stated il
come would be forced to take q none
which in procuring the necessities {
life for himself and family would pc
Jsess only one-half Of Its former purcha.
ing power, for it must be remembers
the price of everything would advant
as tho value of eur money declined
But it would be al endless task to o
tempt to catalogue the disaster whf
such a step would be sure. to entail.