San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1895-07-24
THE MONETARY QUESTION.

Of an International monetary con-
ference for the purpose of decree
ing a fixed ratio or so.called rela.
tion in value between gold and
silver, / should like to submit
briefly some meditations on the
monetary question.
In the first place 1 should like to
emphasize the fact that the costli-
ness rather than the value of the
two metals is to be considered. The
value Of an object is always identi-
cal with its utility, but costliness is
the product Of value and rareness.
On the division Of labor, com.
merce took the place Of immediate
barter and the precious metals, de-
sired by all men, were advantage
ously used as means Of exchange
on account OF their durability, elias
ITCHY and great costliness in pro-
portion to the mass. To facilitate
trade, the governments later pro-
vided silver and gold pieces with
their stamp, to indicate that these
pieces contained a certain quantity
of the metal and make them a
legal tender.
When com merce was still con.
fined to narrow limits, and money
was consequently used in lesser
amounts, the money which in
most countries constituted the
legal tender was silver coin,
and this was also used as a
measure of the costliness of gold
coins, premium, discount; since,
however, the interchange Of money
increased to greater sums and ex-
tended to more distant points, the
less voluminous gold proved more
convenient for such purpose. This
led to carrying the use of gold to
an extreme, for now silver was d.
vested of it's function as the legal
tender and measure of costliness,
and replaced by gold; consequent
ly the utility or necessity of gold,
and thereby it's costliness was arti.
ficislly raised, because it's quantity
was not at the same time increased
In proportion; while in the case of
silver exactly the reverse was ef-
fected.
Money, as q measure of costii-
ness, must be just as constant in
costliness, as yard.stick, a meas
ure Of length, must be in length !;
but how can we provide such
money?
Here is my solution Of this ques.
ton:
As gold has risen and silver has
fallen. the point of stability lies
between the two. The dollar, as
the unit of measure, must rest as
an abstract quantity on that point
of stability. The equivalent of this
dollar in gold-or silver bullion, on
the basis of the market price OF
said bullion at any given time, can
be found by forming two equa-
tions, one according to the gold
standard, the other one &C.
cording to the silver stan
dard, adding them, and
then dividing the respective
sums by two; for example:
Gold standard: PARTLY weight
of gold, 80 p. b. W. OF silver, 81.
Silver standard: II part by
weight Of gold, 16 p. b. W. Of silver,
81.
Sum: Il part by weight Of gold,
As p. b. W. of silver, So.
Divided by 3: II part by weight
Of gold, "a p. b. w. OF silver, 81.
The ambassadors of the United
States at London; Paris and Ber-
lin could be instructed to transmit
by telegraph every night to the
subtreas airy at New York the clos
ing quotations of gold and silver at
the bourses of those cities, and the
medium of the quotations Of these
four dominating financial centers
could be recorded and be made the
basis for redemption for the fol-
lowing day; for example:
Quotation at New York: gold to
silver, 81 to $3l 30-100.
Quotation at London: gold to
silver, 81 to $31 25-100.
Quotation at Paris: gold to sill.
yer, 81 to $31 20-100.
Quotation at Berlin: gold to sill.
yer, 81 to $31 25-100.
Medium: gold to silver, 81 to $31
25-l00. s.
| Then the basis for redemption
would be calculated thus: 81 25-l0(
parts by weight of silver are to II
p. b. W. of silver, as l part by
weight Of gold Is to 512-l, 900 parts
by weight Of gold.
Gold standard: l part by weight
of gold, 81 25-100 p. b. W. Of silver
81.
Silver standard: 512-l,0O0 par
: by weight Of gold, 16 p. b. W. of sill
|