The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1895-09-11
TILE GRESHAM Law.

TIE GRESHAM Law.
1t Explains Why Silver Standard Ma
tions Coin No Gold.
When I closed yesterday I was
speaking of the effect of the free coin
age of silver to bring us to the single
silver standard. I quoted the opin.
IONS OF quite q number of persons who
we're OF that view, who believed that
the free coinage of silver would nee
essarily bring us to the single silver
standard based upon the market value
OF 81! grains of silver. I wish now,
in addition to the testimony of indi-
viduals as to their opinion of what the
effect would be, to cali attention to
the actual condition of things in every
country in the world where the flee
coinage of silver now exists. In every
one of them, SO far as I know without
exception, the free coinage of silver
excludes the monetization of gold on
the ground that a marked difference
between the value Of silver and gold
according to its coinage standard and
its market value will prevent any per-
son from bringing the better metal to
the mint to have it coined; it will
necessarily exclude the coming of the
better metal and necessarily prevent
the payment of the better metal.
No man governed by the ordinary
selfish notions of individuals will ever
day in gold when it is worth more
than silver. They did not pay in sill
yer when silver was worth more than
gold according to the legal ratio, and
the converse Of that proposition is
equally true. There is a law of finance
as universal rs the laws of the Ten
Commandments, and that is that when
there are two standards of value, or
two means of payment, the cheaper
one will be used and the dearer metal
will be either exported to where it is
more valuable or it will be boarded or
kept in the control of the owner. We
plain people distinguish between a
ragged bill and a good, fresh, crisp
bill, because we would rather carry
the crisp bill than the ragged bill. It
is the natural instinct of human nature
among ell people to select the poorer
metal for payment to others and keep
the best himself.
I believe that is tie law OF selfish
ness, which is a universal law. It is
sometimes called the Gresham law,
because a famous man in England, in
the time of Queen Elizabeth, who was
not only a high financial authority,
but held high Offices in Great Britain,
proclaimed the simple principle that
the cheaper money will always dis.
place in circulation the better money.
Subsequently, when q contest grew up
as to the recoinage Of the gold and
silver coins of England, in the early
part of the eighteenth century, nearly
two hundred years ago, the question
of recoinage entered into politics Of
Grea. Britain, and was finally carried
by the great weight and power OF 81,
Isaac Newton, VINO decided in favor Of
the recoinage of the coins Of the realm,
Mr.. President, that is the universe,
law, and therefore when I quote the
actual results among Nations it is only
to show that among Nations as we'll a.
among individuals the same rule pre-
walls. In Mexico they have the free
coinage of silver. They have no coin
age Of gold, not because they cannot
coin it, but simply because nobody
would carry the gold to the minis t.
be coined when it is more valuable
than the silver.
In all the South American Nations
I believe there is free coinage O.
silver. If I am in error about this
shall be glad to be corrected SOM
other time, but l think I am not.
Now what is the condition of affair."
in those South American countriesi
In the first place, having the fre'
coinage of silver, they hal more O.
less of silver in Brazil and the Argen'
tine Confederation, but they soor
drifted into practically an irredeema
bic paper money.
But we sometimes hear, and m,
friend from Nevada (Mr. Stewart
has often quoted India, as if Indi
now had all the blessings OF the sys
tenn of free coinage practically. 1t i
said that India absorbs all the silve
that is aaoat-a Nation OF two 0
three hundred millions OF people, VIII
are about a thousand years benin
the time-and they have made none,
by it. I have taken great pain
to study the Indian question, and
am prepared to show that the result
of practically the free coinage of si
J yer in India r precisely the sam
!, that have occurred in every othe
country Hon ,I0nn Sherman. Inn