Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1895-09-19
BURROWS POSITION.
THE MICHIGAN SENATOR ARGUES
AGAINST FREE COINAGE.

" HAVING Two DOLLARS ct DiHcrent VAL
>"x ENiis OF silver Basis,
In an address, delivered nj Bay View.
Mich, Senator Burrows of Michigan
vigorously opposed the free coinage fall
lacy and upheld our present financial
system After reviewing our monetary
legislation he said;
In the first place tho free and I'M
limited coinage OF silver nc l6 to /
would in my Judgment eNpel from our
circulation not only our entire vo,umc of
gold, but every dollar of paper money
Wdoemahlo IN gold, and cause contrae-
tion ot the currency and resultant
panic the like Of which has not been
soon in this generation,
This would follow Ms tho inevitable
result Of that law nt monetary science
which where two moneys arc issued Of
unequal value tho cheaper will always
eXpel tho dearer from circulation, II
certainly needs no argument to demon.
Strato the truth of tho proposition that
if two dollars ARE issued, ono worth 80
CcutS and tho other 100 cents, tho 30
cont dollar will he tho only dollar in
circulation and tho 100 cent dollar will
be bearded by tho banks aud individuals
until thcwhole volume Of such currency
entirely disappears This law is of uni
vcrSal application and has its origin i'll
human nature itself No debtor owing
500 would discharge that Indebtedness
in the more valuable Of two moneys. He
would surely make use of tho cheaper
and retain the dearor II was the knowl-
edge Of this law that guided the fathers
in fixing the ratio IN the beginning at
II to |,
"Thcy knaw that dollars OF unequal
commercial valuo could not be made to
circulate permanently side by side, and
So, having asoortained that 2ls, grains
of pure gold were of equal value with
Nj 4 gruins Of puro silver, they po-
vided for the coinage of these two met
ais into dollars ut tho ration of IL To |,
but tho truth Of this principle has heen
demonstrated over aud uvnr again even
in our own history Tho gold and silver
coins issued at the ratio of 10 to I'M
der tho MT OF l70Q shortly became of
unequal commercial value, tho bullion
in the gold dollar hoing of greater value
than the bullion in tho silver dollar.
The silyor dollar became cheaper than
the gold dollar, and tho consequence
was that silver aloue circulated and
gold gradually disappeared, Indeed,
and for the Same reason, tho coinage Of
gold declined, for tho 2ial gihins of
pure gold provided for III tho gold dol
lar woro worth moro mcoined than
when coined. and therefore it's coinage
naturally ceased, and silver bullion
alone found its way to tho mints of tho
United States.
lit remains only to he inquired what
would he tho probable effect of adopting
! the silver dollar Of 31l y grains ns our
single standard of value, Tho first md
most patent result, ny already noticed.
would bn to drive from our circulation
every other dollar of superior value,
whether Of coin or paper Our 5000,
600, 600 Of gold, constituting onothird
uf tho entire volume of our money,
would he quickly eliminated from our
circulation by being boarded on sent
abroad. followed by the retirement of
our $500, 600, 900 of paper currency re-
doemablo IN gold, producing contrac-
tion Of tho currency, unexnmpled in our
history, of over ~ 1000, 600 600, to be
followed by financial convulsion UNI
procodontcd in modern times. IL will
not do TO say that with FREQ and unlim-
tied coinage this vacuum would be
quickly supplied, for 1t would require
20 years. with tho present capacity of
ON mints,. To replace this vast volume
of currency with silver.
"rhis consideration alone ought to hc
sufficient to deter ny from vonturing
upon such hazardous policy. More
thnh this. Tho silver dollar Of 871 "a
grains Produced under FREQ coinage and
not maintained at u purity with the gold
dollar, ~ 10 surely would not be, would,
as we have seen, ut once sink to the level
Of its bnlliun value and be worth only
about 80 cents. Every depositor in sav.
ings, national and state banks, tho hold
ors Of policies in life, fro aud all other
/ insurance companies. investments in
loan aud building associations, represent
cd by great body Of people numbering
more than 90, 600, 900, would be forced
to receive In return for their deposits,
premiums and Investments dollar Of
only one-half tho value OF that with
which they parted, TO the o. ormous and
inculcuable advantage Of these great
corporations. Suppose an importer OF
foreign goods should become indebted to
tho government Of the United States III
the sum of $4,000 for customs dues.
what would prevent him from purchas
ing 81, 900 Of silver bullion and under
FREQ coinage converting IL into 10000
silver dollars, and with these liquidata
| the indebtedness TO tho government?
Every pcnsioner would find his meager
stipend lessened one-half, and many Of
them would DO reduced to beggary, Not
only this, but all the recipients Of fixed
salaries, every clerk, teacher. railway
employee and receiver Of stated IN.
come would be forced to take money
which in procuring the necessities OF
life for himself and family would pos
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