Greenbrier independent. [volume] (Lewisburg, Va. [W. Va.]) 1859-1980, 1895-07-04
Queries on the Silver Question.

OiucI III "HlCn tney are prOpOuDued.
Our friend seems to PROFOUND the
queries simply for information
l. What is meant by the free
coinage OF silver?"
Answer. This means simply
that any owner Of silver bullion,
whether he lives in the United States
or elsewhere, shall have the privi-
lege of taking his bullion To the gov
ernmont minis and have it coined
into standard silver dollars free of
charge. The contention of the sill.
Yer men is that gold and silver shall
be placed in all respects upon the
same footing both with free access to
the minis, and with equal rights as
to coinage.
,. " What is meant by the ex-
preston ratio of l6 to | ?"
Answer. The term ratio, rs here
used, has reference to weight and
means that the silver in silver dol
lar shall be sixteen times as heavy
as the gold in gold dollar, or, to
reverse 1T, that the gold in gold
dollar shall be 10th the weight of
the silver in silver dollar. The
pure silver in II silver dollar weighs
37lt grains, the pure gold in gold
dollar, 23.2 grains, establishing a
ratio Of 1898 to / usually spoken of
as l6 TO |. 1t is urged by the silver
men that ever since the two metals
| gold and silver have been used as
money they have been discovered
and dug from the earth in the pro-
portion of about l53 or 1G ounces,
pounds or tons of silver to one
ounce, pound or ton of gold. Hence.
they insist that nature has es-
tablished ratio which should not be
disturbed. The gold men, on the
other hand, contend that in recent
years silver has been produced in
such large quantities as to make the
true ratio about 81 OF silver to of
gold. 1t is no doubt true that, as ap-
piled to the United States alone, a
ratio of Is to no longer represents
the proportion in which the two
metals are produced, but we are not
prepared to say that as applied to
the whole world this supposed nat.
ural ratio of Is! or 16 to one has
been disturbed by an over-produc.
ton of the white metal.
3. What Is meant by the tern
seigniorage ?"
Answer. The new STANDARD
Dictionary gives two definitions a.
follows: o. "A charge made bN
government for coming bullion
brought for that purpose" and it ha,
been commended by economists tha
this charge should never be carried
further than the cost of coinage
(2.) 1.-THE difference between tn,
cost OF bullion purchased by a gov
ernment for coming and the nomi
nal or face value of the same wher
coined" In his veto message O
March 3lst, '94, Mr.. Cleveland said
"this gain or seigniorage evidentl,
indicates so much of the bullion
owned by the government as shoulc
remain after using sufficien
amount to coin as many STANDARD
silver dollars as should equal in mum
Der the dollars represented by tn,
Treasury notes issued in payment o.
the entire quantity of bullion. -
An illustration may explain wha
seigniorage means as applied to the
Sherman silver law. Under thi,
law the Secretary of the Treasur,
was required to purchase at the
market price, 10000 ounces OF
silver per month, provided the
market price was not so high as t.
require more than one dollar to blu,
enough bullion to make a dollar, ir
which event he was not required tc
purchase. When the Secretary
made these monthly purchases OF
silver bullion, he paid for it with
silver certificates, placing the bull
lion in the vaults Of the Treasury
Now, as it does not take an ounce OF
silver to make dollar, there IS con
siderable bullion Tor pig silver) left
after taking out of each ounce
enough to coin dollar and this resi-
due is called seigniorage, and &C.
cumulated to the amount of about
$50, 900, 900 under the Sherman law
and when Congress passed bill tc
coin it, Mr.. Cleveland entered his
veto.
4. ITO what amount is silver q
legal tender ?" Ans.-All standard
silver dollars are legal tender to any
amount. Subsidiary coins-halves,
quarters, &C., only to the amount OF
five dollars.
D. What is a Monometalist. ;"
Answer. He is one who advocates
a single metallic standard of value liz
coinage or the use of one metal as
primary or redemption money.
=. What is a Bimetalist on
Answer. He is one who advocates
double metallic standard of yalue.
or both gold and silver as primary
or redemption money.