The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1895-05-18
MORTON AND SILVER.
The Secretary Of Agriculture Re-
sents a Coloradoan Criticism.
lie Quotes History, Acts of Congress and
Orders to Mint Directors In RSla-
tion to the Coinage of
Silver Dollars.

WASHINGTON, May 8. Secretary
Morton has written a letter to James
a. Cherry, of Denver, Col, in reply to
a~letter from that gentleman criticising
some statements in the interview with
the secretary of agriculture, printed a
couple of weeks ago, which caused SO
much comment. 1t is as follows:
From your letter of April ., 1895, it appears
that you and l perfectly agree on the funda-
mental point, namely, that demand and sup
ply inexorably regulate all values whatsoever,
At all times and In ali places. at what points
10 we begin to separate from each other and
then go on TO conclusions SO utterly diverse?
These points are only two-the first historical
and the second logical.
You assume certain propositions to be true
Of silver, which are not historically true at all.
but quite the reverse Of true. You say, for in
stance: Until 1873 the chief use Of silver was
for coinage. 1t had other uses, but the demand
for it for coinage purposes was steady and
constant
ION this point you have been monstrously
mi1infOrmed. The first federal coins of silver
were mintcd in 1874, and Of gold in 1875. Their
ratio, as by Alexander Hamil-
ton, and fixed by an act of congress, was Isl.
1t was hoped thus to keep the two metals in
equilibrium in coinage. But they would not
come in equilibrium at that rate; still less
would they stay there.
Only 3l2 dollar pieces were coined at the
American mint in the entire year Of 1906, be-
cause the silver was worth more out of the
coinage than in it and worth more for export
than for domestic money. What was the mat
ter with those silver dollars. Nothing, only
they were too valuable. May /, 1906, there
came an order from President Jefferson to the
director OF the mint at Philadelphia, that all
the silver to be coined at minis shall be Of
small denominations, SO that the value Of the
largest pieces shall not exceed half i dollar
The reason given by the president for this
order was that considerable purchases have
been made Of dollars coined at the mint for the
purpose OF exporting them and that it is prob
able that further purchases and expectations
will be made
The coinage Of silver dollars, thus au-
thoritativcly suspended at the American mint,
was not resumed there for thirty years. In
these few facts, which are official and unqueS-
tiOnable, behold the beauties and advantages
OF a double standard; Of the unlimited coinage
OF both metals in an equal and constant ratio
with each other; of two yardst0cks of different
lengths TO measure cloth by in the same mar
aet.
BY the law Of 1884 the ratio was sub
stantially put at l to Is. But this was going
too far in the opposite direction. Gold was
not worth 10 in silver in the markets of
Europe. Consequently the international
current Of the metals was for a time re-
verSed, silver passing in preference abroad
TO liquidate the balances of trade and gold
coming in small quantities To the United
states, where it was more than 3 per cent.
dearer in silver than in Europe. BY 1853 the
immense disadvantages of a double standard
had become so plain to all thinking people that
congress wisely determined to abandon the ut
cerly futile attempts to secure the parity OF
the two metals, and to make gold the legal
tender for debts, except for sums Of five dol
lars and under In the second place. Mr.. Cher
ry, as an instance OF a historical assumption
contrary TO facts and natural differences, allow
me respectfully to call your attention to the
use, in common with many Of the bimetallistS,
sO-called, Of the date 1873 as the time 'demone-
tizatiOn of silver" Unless l an mistaken the
SilverCdollar is not mentioned at all. one way.
or the other, in the act of 1873. All the de-
monetization Of silver, as l understand it, that
ever came about in this country. happened in
the law OF 1883, after open and full discussion,
and practically with unanimity, when congress
introduced the subsidiary silver coinage. of
which a nominal dollars worth weighed 6.9l
per cent. less than the silver dollar: and also
took away the legal-tender quality of all silver
in payment OF debts of over s. in amount.
You employ over and over again in your
letter the two most common logical faliacies
that enter into the speech of argumentative
men everywhere, namely, putting cause into
the place CT effect, and assuming that because
one thing happened after another in point Of
time, therefore it was the result of that other.
Let US look candidly at the instances OF
these, known almost at random. You ask.
What creates demand2' and answer, use" /
ask, in my turn, What creates use?' and an
swer, demand Why is it that there is so lit
tie use of silver dollars in this country to-day,
while there are millions upon millions Of them
lying idle: answer confidently because there
is no adequate demand for them. Have you
not innOcently but badly mixed up cause and
effect in this case? Demand, in the common
sense, is nothing but desire for something on
the part OF one man, coupled with his willing
ness to pay something for it, satisfactory to
the other, who owns it..
C"USe Of that thing. no matter what it is only
follows the demand for it. You have help
iessly put the cart before the horse. What is
the sense Of clamOring still for
coinage when the treasury can not get rid. by
hook or crook, of that already coined and ly-
ing in useless heaps They are well minted,
of Just weight, nine-tenths fine, are legal ten
EIer for all debts and bear the legend: In God
We Trust"
What ais them? Ianswer. and so must you,
on reflection, there is no demand for them,
and therefore no use for them. What more
can the law do for them.
1T may be, my dear sir, that in your study Of
finance, you have overlooked, in whole or in
part, the momentous fact that all but a mere
fraction of the worlds commerce is mediated
b. instruments OF credit and not by metallic
money at all, whether of gold or OF silver. and
that by far the most eSsentialservice &; money
in this age of the world is to furnish p steady
measure.
Mr.. EckelS, the present comptro:l-r OF the
currency, has made it probable by careful in
quiries instituted through his department that
about 50 per cent. of the retail business .of
this country is achieved by means of check.
drawn on local banks and cleared by the banks
with very little use of coins. The relative
employment OF these instruments Of credit Is
constantly increasing through the multiplied.
tiOn Of banks and otherwise. and. of course,
also the quantity OF coin money required to do
the business of the world, or Of any advanced
country in the world. is steadily decreasing
relative to the business done"
Sent a Bullet Through His Head.