Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1895-04-10
Monometallism VS.. Bimetalllsm

M0nometallism VS.. BimetallIsm.
In reference to the proposition to
have free coinage of dollars containing
100 cents worth of silver a correspond
ent writes as follows
Under free coinage it is absolutely
impossible to have two standards, or
more properly two measures OF value,
and that for the simple reason that
there are no two commodities (such as
gold and silver are and must ever con-
tlnue to be, even though used by
civilized man as coin metals) no two
commodities which possess or have
ever possessed fixed stability OF value
relatively to each other. 1t is true
that, nominally and as far as law could
declare them to be so. these two metals
have stood in certain ratio to each
other for periods of uncertain length
and more or less arbitrarily, but fiuc
tuations haye occurred continually
without the least regard to legal en-
actments.
The bullion value of the two metals
in the markets of one or more nations
has varied according to the greater or
less quantity of either material which
may be in the market or in circulation.
1t never has been and never will be
possible to preserve uniformity of value
or either of both metals.
Value depends upon exchangeabili-
ty, and exchangeabflity Is limited only
by human desire, which knows no laws
and is as comfortable as the waves of
the sea.
Suppose, for the sake of argument,
that Congress were to sanction the
coinage of silver dollars at the actual
bullion value of to-day, about 30 of
silver to of gold, or with 100 cents
worth of silver in them who would be
bold enough to say how long this ratio
would be good?
Who could fix an ''exchangeability"
of gold bullion at this ratio?
No edict of prince or government, no
human power but the court of last re-
sort-the bullion market
If you ask what would be the conse
quence of depa, ture, however slight
from this hundred cents worth ratio.
I answer, and commo sense fortified
by the testimony of ages will prove it
to you, that a hairbreadth variation
in bullion value will drive out of cir
culation the undervalued metal which
from that day on would be boarded or
exported and only the oyervalued coin
would remain and be rendered in
liquidation of debts, public or private.
If silver declined from present value
that metal alone would be seen in cir
culation, while gold would be boarded
and silver recommendation would exist
in fact, though not perhaps in name.
If, on the other hand, silver advanc
ed in bullion value, it would cease to
be offered at the mint for coinage and
gold monometalism would prevail.
From the known instability of the bull
lion value of silver, the decline rather
than an advance in value would be
most likely to occur, and in that case
the result of such free and unlimited
coinage would be disastrous in kind,
though perhaps not so much in de
gree, as would follow the unlimited
coinage of silver at the old ratio of Is
or 16 to 1.-The dream of the silver ia
natics of the West and South.
Far better would it be for all lovers
of a sound metallic coinage to resist all
attempts at compromise with the com
mon enemy of sound finance, and to
remember, in the striking language of
John Locke. the father of the system
which has blessed England with the
most perfect coinage ever devised by
man, that IAN ounce of silver is always
of equal value to an ounce of silver.
and an ounce of gold to an ounce of
gold, and two ounces of the one or
other of double value to an ounce of
the same. But gold and silver change
their value to one another, for suppos-
ing them to be in value in 16 to 1 now,
perhaps the next month they may be
as 15a or 155 to 1, and one may as well
make measure whose parts lengtheD
or shrink as measure of trade of ma
terias that have not always a settled
invariable value one to another. One
metal, therefore, alone can be the
money of account and contract and the
measure of commerce in any coun
try"
These remarks are meant to point
out the danger of leaving the sheet bar
anchor of our financial stability, the
actual gold standard of fact for the
purpose of dalying with the new pat
ent nostrum of bimetalism, or worse,
silver monemetallsm. which won d
bring our people to the level of the
semi barharOus nations of Central and
Southern America and china.
There will always be a place for si!-
yer in our country as subsidiary coin
age and its friends must be content
with that. There is no middle cours e
for advocates for sound finance and
the sooner the issue is made on these
lines the better.