Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1895-12-18

We Twice Failed to Establish Bimetaliic
Currency When the Metals Were Near
Zach other In value-Attempt at Free
Coinage Now Would Result In silver
MonometalII.m and Iu Great Financial
Distress.
President Cleveland, in his message
to congress. reviews at considerable
length the history Of orr greenbacks,
tLe great need Of retiring them and the
urgent need Of changes in our banking
and currency laws to give Us a sufi-
cent, safe ard elastic currency. His
recommendations agree substantially
net ONLY with thuscof Secretary Carlisle
and Comptroller Eckles, but with these
OF many eminent authorities on this
subject They should be- and we hope
have been, read by all good and patri
oticcitizens We, however, propose now
to call renewed attention TO his excel
lent discusson Of the free coinage Ques-
tiou. 1t is one Of the most convincing
arguments ever made against cheap sill
yer dollars. We reproduce below the
greater part of this discussion:
While ] have endeavored 10 make 4
plain statement Of the disoIdered condi-
ton of our currency and the present
dangers menacing our prosperity, and
to suggest Il way which leads to safer
financial system, | have constantly had
in mind the fact that many Of my conn
trymen, whose sincerity / do not doubt,
insist that the cure for the ills now
threatening us may be found in the sin
gle and simple remedy of the free COIN
age OF silver.
We're there infinitely stronger reasons
than can be adduced for hoping that
such action would secure for rs bi-
metallic currency moving on lines Of
parity. an experiment so novel and haz-
aracns as that proposed might well stag
ger those who believe that stability is
an imperative condition Of sound money.
No government. no human contri-
vance or act of legislation, has ever been
able to hold the two metals together in
free coinage at ratio appreciably diff
ferent from that which is established in
the markets # the world.
Those who believe that our independ
eut free coinage Of silver at an artih-
cial ratio with gold Of lG to would re-
store the parity between the metals, and
consequently between the coins, oppose
Ian unsupported and improbable theory
to the general belief and practice Of
other nations, and to the teaching Of the
wisest statesmen and economists Of the
world both in the past and present,
and, what is far more conclusive, they
hun counter to our own actual expert
ences.
Twice IN Our earlier history our law
makers in attempting TO establish bi-
metallic currency undertook free coin
age upon ratio which accidentally va
ried from the actual relative values Of
the two metals not more than per
cent. In both cases Notwithstanding
greater difficulties and cost Of tTanspor-
tation than now exist, the coins, whose
intrinsic worth was undervalued in the
ratio, gradually and surely disappeared
from our circulation and went to other
countries where their real value was
better recognized
Acts of congress were impotent 70
create equality where natural causes de-
creed even "a slight inequality.
Twice in our recent history we have
signally failed to raise by legislation
the value of silver. Under an act Of con-
gress passed in 1873 ne government
was required for more IN II years to
oxpcud annually at least $4,000, 600 in
the purchase Of silver bullion for coin
age. The act Of July II, 1890, in still
.boldcr ctTolt increased the amount Of
silver the government was compelled 10
purchase. and forced it to become the
buyer annually Of $1,000, 600 ounces, or
practically the entire product Of our
mines. Under both laws silver rapidly
and steadily declined in value. The
prophecy and the expressed hope and ex-
recitation Of those in the congress who
led in the passage Of the last mentioned
act, that itwould re-establish and main
tain the former parity between the two
metals, are still fresh il our memory.
IN the Eight Of these experiences,
which accord with the experiences OF
other nations, there is certainly no Sc
cure ground for the belief that an act Of
congress could now bridge an inequality
of 80 per cent between gold and silver
at or present ratio, nor is there the
least possibility that our country, which
has less than one-seventh Of the silver
money IN tie world, could by its action
aloue raise not only cur own but oil sill
yer 10 its lost ratio with gold. Our at
tempt to accomplish this by the free
coinage Of silver at ratio differing
widely from actual relative values
would BE- the signal for the complete de-
'parture Of gold from our circulation, the
immediate and large contraction OF our
circulating medium, and n shrinkage in
the real value and monetary efficiency
of all other forms Of currency as they
settled to the level of silver monometal-
lism. Every one who receives fixed
salary and every worker for wages would
find the dollar in his hand ruthlessly
scaled down TO the point Of bitter disap-
pointment if not 10 pinchiug privation-
\ change in our standard 10 silver
recommendation would also bring on
collapse Of the entire system Of credit
which, when based on a standard which
is recognized and adopted By the world
of business, is many times more potent
and useful than the entire volume Of
currency aui is safely capable Of almost
indefinite expansion to meet the growth
Of trade aud enterprise.
In a sell invited struggle through
darkness and uncertainty cur humilia-
tion would be increased by the con-
soionsness Tat We bad parted company