The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-09-19
THE GREAT EVILS OF A SILVER BASIS.
II would ENpcI Our Gold and
"oi" Paper ma Cause Dis
asfrous Pnnic-fs Result of Having
two Dollars of Different values
in Circulation.

fystem. After reviewing our monetary
legislation he said:
In tho first place tho free and uu-
limited coinage of silver at IS to /
would in my Judgment expcl from our
circulation NOT only our entire volume of
gold, but every dollar OF paper money
reoecmabie III gold, and cause IL contrac-
ton OF the currency and a resultant
panic tho like Of which has not been
seen III this generation
This would follow us the inevitable
result of that law of monetary science
which where two moneys are issued of
unequal value tho cheaper will ALWAYS
expel tho dcnrcr from circulation. Ii
certainly needs no argument to demon
strate the truth Of tho proposition that
II two dollars are issued. onc worth 80
cents and the other 100 cents. the 30
cent dollar Will be tho only dollar in
circulation and the 100 cont dollar will
be bonrdod by the banks and individuals
until the whole volume of such currency
entirely disappears. This law is of uni
Nersal application and has it's origin in
human nature itself. No debtor owing
500 would discharge that indebtedness
in the more valuable Of two monevs. He
would surely make use of the cheaper
and retain the dcarer. 1t was the knowl-
edge of this law that guided the fathers
III fixing tho ratio III tho beginning at
10 to L.
They knew that dollars of unenral
commercial value could not bo made TO
circulate permanently side by side. aud
so, having "sccrtaincd that 243, grains
of pure gold were of equal value with
37l 4 grains Of pure silver, they pro
vIded for the coinage of these two met
ais into dollars at the ration of 10 to /.
But the truth of this principle has been
demonstrated over and over again even
III our own history. The gold and silver
coins issued at the ratio OF 10 to | I'M
der the act of 1892 shortly became of
unequal commercial value the bullion
III the gold dollar boing of greater value
than the bullion i'll the silver dollar.
The silver dollar became cheaper than
the gold dollar and the consequence
was that silver alone circulated and
gold gradually Disappeared Indeed
and for the same reason the coinage of
gold declined, for the 242, grains of
lar We're worth moro uncoincd than
when coined, and therefore its coinage
naturally ceased, and silver bullion
alone found its way TO the mints of tho
United States
1t remains only 10 hc inquired what
would be- Tie probable effect of adopting
the silver dollar OF 37lle grains as o,/r
single standard Of value Tho first and
most patent result, as already NOTICED,
would ho To drive from our circulation
every other dollar of superior Wine.
whether of coin on paper. Orr $500.
coo, O0h of gold constituting onc-third
of the cmtir" volume of our money.
would be quickly eliminated from onr
circulation by being boarded or sent
abroad, followed 10y the retirement Of
onr FiOo, GOO, 600 of paper currency re-
dccmah!c III gold producing "A contrac-
uon al the currency, uncxampled in orr
history OF over $1,000, 600. 600. TO be
followed 10y financial cOnyulsion I'M
precedcntcd III modern times. Ii will
Not do 10 say that with free and unlim-
| 1tcu coinage this vacuum would he
| quickly supplied, for il would reouirc
20 years, with The present capacity Of
ON inlnts. 70 replace this vast volume
| OF currency with silver.
/ This consideration alone ought To no
sufficient 10 deter us from venturiuy
| upon such hnzadous policy. More
than tins The silver dollar of Bill
grams produced under free coinage and
not maintained ut IL parity with the gold
dollar, as 1t surely would not be. would.
ms we nave seen, at once sink to the level
OF Its bullion value and be worth only
about 90 cents. Every iepoSitor in say
lhgs national and state banks. the hold
ers OF policies III life. fire and all other
insurance companies, Investments in
loan and building associations ,reurcsrut
ed by great body of people numbering
more than 10000, 900, wouldgbe forced
to receive III return for their deposits
premiums and investments "A dollnr of
only Onc-half the value OF that with
which they parted, to tho enormous and
lhcaicuiablc advantage of these great
corporations Suppose an inuorter Of
foroisn goods should become indebted to
the government of the United States in
the sum Of $4,000 for customs dnes
/ what would prevent him from purchas
ing $4,000 Of silver bullion and under
1reo coinage converting it into 40. 900
silver dollars, and with these liouidate
tho Indebtedness to the government
Every pensioner wnuld find his mcaper
stipend lesSCnea one half and MANY of