The times. [volume] (Richmond, Va.) 1890-1903, 1895-02-20
FREE COINAGE AND sEIGNIORAGE-
WHAT THEY ARE.

We have frequently remarked that the
backbone of the movement for free COIN
age Of silver is the population of the Sill
yer States, which wishes to sell their pro-
duct to the Government at twice its real
value. aided by the great body OF people
all over the country who would like TO
see q general upturning of things, IN the
hope that they might fish something out
of the wreck. But there are also many
people w.o are honest in their belief
that a crime has been committed i'll de-
monetizing silver, but who really know
very little about the facts of the case.
These are represented by correspondent
of the Richmond Dispatch. who addressed
the following letter TO that paper last
Sunday
Paint Lick. Va.
To the editor of the Dispatch;
| was very much interested In a query
in the Dispatch a few weeks ago III re-
gard to the free coinage of silver and
was sorry to see your answer so short.
Thousands of people do not understand
this question. and will not until our pa
pers explain 1T more fully. VIII you
kindly answer few more questions in
regard 10 1t?
l. Explain the difference between the
free coinage OF silver and our present
coinage system
. Explain fully what is meant by the
"seigniorage" now in the Treasury.
g. How much pure silver is there now
In a standard silver dollar?
(. What is meant by the ratio OF 10
TO L.. in the coinage of gold and silver?
by answering these or part OF these
questions. you will not only oblige "A sub
scriber. but many others. }. y. 4.
This man. like thousands OF others,
really wants information. Here is the
information the Dispatch gave him:
/. Whoever has silver coined now has
TO pay for the coming. If the coinage
of silver were free he would be able
TO take his silver to the mint. and for
every 42l-2 grains, nine-tenths fine. TO
receive a silver dollar.
.. The "seignorage" is now the diff
ference between the real value of silver
bullion and the coinage value Formerly
the Governments charge for coinage was
the signiorage.
s.. 81 il grains.
l. 4 gold dollar has % $40 grains of
gold. \ silver dollar has 4l2 IL grains,
or Just sixteen times as much. Hence
the phrase "l6 TO l."
We are not called upon 10 furnish in
formation that the Dispatch fails to give
it's correspondent, but it is our business
TO see that the people get correct in
formation on the questions asked by this
correspondent. because the very life of
prosperity is soon to be tried on is
sues involving correct information upon
those very questions. We shall. there
fore. give this gentleman the information
which the Dispatch has not given him.
When this country established a mint
and provided for coming the precious
metals, it was estimated that fifteen
ounces OF silver were the equivalent of
one ounce of gold and our first coinage
act provided that fifteen ounces of silver
should be coined up into as many sill
yer dollars as one ounce of gold was
coined into. This was called IL double
standard. at the ratio or fifteen 10 one.
Later on 1t was found that fifteen ounces
of silver were not worth as much as one
ounce OF gold, and the ratio was accord
ingly changed 10 10 to l, at which II has
remained ever since. But only a little
above $4,000 of silver dollars were ever
coined by our Government from its be-
ginning down to 1873 After the ratio
was changed TO Is to ], It was found that
this made the silver dollar more valuable