The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-05-08
MURPHY, HIBBEN & co.
Importers, JObberS.
MORTON TO CHERRY
THE SECRETARY REPLIES TO CRIT.
ICIsMS OF A SILvERITE.
He Points Out Numerous Errors Free
Qucnfiy Made by Advocates of
Unlimited Free Coinage.

WASHINGTON, May 7-Secretary Morton
has written 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 Agri-
culture, printed a couple of weeks ago
which caused so much comment. 1t is as
follows:
From your letter of April p, 1885. il
appears that you and / perfectly agree i'm
the fundamental point. namely, that demand
and supply inexorably regulate all valua-
pies whatsoever at all times, and lii all
places. AT what points do We begin TO
separate from each other, aud then 90 on
10 conclusions so utterly diverse? These
points are only two-the FIRST. historical, and
"First-You assume certain propositions
10 be true OF silver, which are not his
toerically to true at all, but quite the reverse
OF true You say, for instance, until 1913
the chiee use OF silver was for coinage 1t
nad other uses, but the demand for il for
coinage purposes was steady and constant
On tnls point you have been monstrously
misinformed. The first federal coins of sill
yer were minted in 1894. and of gold in
lf9o. Their ratio, as recommended by Secre-
tary Alexander Hamilton and fixed by act
or congress, was 10 to /. Ii was hoped thus
10 Keep the two metals in equilibrio in the
into equilibrio in that ratio, still less would
they stay there. Only 321 silver dollar pieces
were coined at the American mint in the
entire year of 1895, because the silver was
worth more out of the coinage than in It,
and worth more for export than for domes,
tie money; What was the matter 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 sill
yer 10 be coined at the mint shall be of
small denominations. so that the value OF
the largest pieces shall not exceed half a
dollar. The reason given by the President
chases have been of dollars coined at the
mint Tor the purpose of exporting them, and
hat L. ~
and expectations will be made The coin
age ofA silver dollars thus authoritatively
suspended at the American mint was not re-
sumed there for thirty years In these few
facts, which are official and unauestonable
behold the beauties and advantages of a
double standard of the unlimited coinage
or botn metals in an enacted and con-
slant ratio with each other of two yard
sticks of different lengths TO measure clotl-
by in the same market.
by the law of 1894 the ratio was SUBJ
stantially put at to is. But this was
going too far in the opposite direction
.,oid was NOT worth sixteen in silver I'm
international current of the metals was
now for a time reversed-silver passing i'm
preference abroad TO liquidate the balances
OF trade and gold coming I'm small quaint
ties TO the United States. where IL was more
than per cent. dearer in silver than in
Europe. BY 1855. the immense Disadvantages
of double standard had become so plain
TO all thinking people that Congress wisely
determined TO abandon the utterly futile
metals. and to make gold the legal tender
for dents, EXCEPT fn- sums of 81 and under
I'm the second place. Mr. Cherry. as an
instance OF an historical assumption con-
trary To facts and natural inference. allow
me respectfully To call your attention to the
use. in common with many Of the bimetal-
lists. so-called. OF the date 1873 as the time
of the decentralization Of silver Unless am
mistaken the silver dollar is not mentioned at
all. one way or the other. in the act of
1873. All. the decentralization of silver as
i understand IL, that ever came about in
this country. happened in the law of 1853
after open and full discussion and practical
duced the subsidiary silver coinage of which
a nominal dollars worth weighed e9l per
cent. less than the silver dollar and also
took away the legal tender quality of all
silver in payment OF debts OF over 81 in
amount
"Second-You employ over and over again
fallacies that enter into the speech Of ar
argumentative men everywhere. namely
putting cause into the place of effect. ard
assuming that because one thing happened
after another. in point OF time therefore
II was the result of that other. Let us
look candidly together at the two three
instances OF this. taken almost at random.
You ask: What creates demand? and an
creates use?' and answer Demand Why
IL IL that there is so little use of silver
dollars in this country to-day; while there
are millions upon millions or them living
idle? ] answer confidently. because there