Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-09-19
MILLS ON SILVER.
The Texas Senator Writes an In.
teresring letter
Reviewing tho Coinage History OF the
Quilted States-He Is Willing to Stand
In the Footprints of Jefferson
In Money Matters.

WASHINGTON, Sept Ex-senator
Mills, of Texas, has addressed the fol
lowing letter to the chairman of the
democratic state committee of Texas
WASHINGTON. D. c.. Sept. Z. 1895.
Hon. James G. Dudley, Chairman Of Democratic
State Committee:
DEAR SRI have been called upon to give &c
the people OF Texas an expression OF my opin-
ion on the financial questions now being dis
cnssed on a1s saomp ana "a Inc press o. t n
all the phases OF the pending controversy and
had supposed that my opinions were known te
have so often said. that am in favor OF retain
ing both gold and silver In our circulation. and
have been ever since the coinage question has
been brought into controversy.
advocated the unlimited coinage OF silver
and gold at l6 to as long as could see pros
pect Of keeping them both in our circulation.
The advocacy Of unlimited coinage OF silver
at 10 to Is based chiefly upon the argument
that increased coinage OF silver will increase
the prices OF all commodities.
That would be true if the increased coinage
OF all other countries kept pace with ours.
not increase the prices in other countries I'M
less it is the standard money Of other cOun-
tries whose volume will increase
The proposition Is not to be disputed that
the Increase OF currency, all other things being
equal. raises prices wherever the money cir
culates.
But prices are not affected in any country
where money does not circulate. The opening
Of our minis to the unlimited coinage of silver
but not in Europe AS the prices of co;nnodi-
ties rise here. the value of the lar falls here
in precisely the same proportion The price of
the gold dollar. which Is the common measure
OF value. remaining the same in Europe, il
would buy more commcditie than here.
To illustrate: If bushel of wheat is quot
ed at 81 in London, il is 81 in gold. ana the
price in New York is the same in gold. less the
cost incident TO transportation. Now. If our
circulation is increased l0per cent. al home by
an addition of silver or paper. the bushel
Of wheat would be increased in price 10 per
cent. in New York, but not in London. because
there would be no addition to the circulation
OF England. Wheat being 10 per cent higher
here than in London. gold would go to london.
not 10 New York. to exchange for wheat. as
the minis continued to increase the volume.
the gold would continue to go to Europe for
wheat, cotton and other commodities and as
OF silver was the established law of the United
States. all creditors for their own protection
lars at the market value of 31A grains Of I'M
coined silver. and the bligatiOns of all debtors
would contain promises to pay twice as many
dollars in silver as they do now in gold. Then
the country would be on the silver standard
with an exclusive silver circulation
Is AIMS Az ,b b4 suppose ina. we can IN
standard by coming silver without limit
The money we put In our circulation must
One or the other must take place.
II we increase our circulation with gold as
We did from 1880 to 1850, IL will raise prices
now it did then and flow out to restore the
level. As the gold leaves it's volume decreases
and its value increases and prices rise here
and its outward movement stops when the
common level Is reached.
When the volume of circulation is increased
with silver paper the increased prices make
gold flow out. but as it goes out. the silver not
only takes its place. but continues to drive out
that which remains N the circulation fast
being worth more in the market than in the
circulation, the whole gold circulation will
eventually disappear and silver become the
standard of value.
Gold can never be more valuable in our cir
culation than 1t is in the open market and still
remain in the circulation.
The same result will follow when silver be-
comes the standard All other values will then
be determined by the market value of 371hl
The gold in gold dollar being twice as
valuable as the silver in our silver dollar. the
be twice as high when measured by gold.
Being once fixed on the silver standard. they
can not rise above that plane by any amount
OF silver that may be coined and added to the
circulation for It will flow out of the circua-
ton and into the market Just gold does
when it is the standard of value.
From 1850 to 1850 we took from our mines
500. 100000 of gold: Yet in 1880 our circulation
only showed saas 100000 of both gold and silver
More than half the gold went to the markets.
From 1I92 or le93 we took from our mines
q .0l3 336. IS. In gold. but we only have to-day
treasury. Three-fourths Of it has LELAND
left because it was worth more in the markets
as metal than in the circulation as money.
value abroad took 1t away.
We have twice in our history tried the ex-
pertinent Of making compound standard of
gold and silver. and Signally failed In both in
stances.
In i7e. made the ratio Is OF silver to of
coinage of both gold and silver. BY the ratio
adopted. gold was undervalued. The average
value OF the gold in the gold dollar from 1872 to
1884 was more than per cent. greater than the
average value OF the silver in our silver dol
lar. This was margin enough and more than
enough. to take all OF our gold coins out of our
circulation send
sale. The consequence was that this country
was or a silver standard with silver cfrcuIa-
ton almost exclusively. This proved to be a
great Inconvenience to the country and after
the war Of 1872 had passed and the industries
ucts were mulsipl ing and seeking markets
everywhere. it was seen that the absence OF
gold was q great hindrance to commercial
In 1878 the agitation began in earnest for the
restoration of gold to our currency. II contin-
ued until 1891, when to restore 1t the ratio was
changed from Is to to 1902 to l. and in 1887
from that TO 13.9SS to l. which is commonly
called IS to /. The minis were then opened to
the unlimited coinage OF both metals at thas
rotio. BY this adjustment silver was under
valued From 1884 to 1853 the silver in a silver
the market than the gold in a gold dollar As
a consequence. it left the circulation. and we
had gold as the standard. and an almost ex-
elusive gold metallic circulation. These two
failures in the efforts Of our
statesmen to make a compound standard of
values seem to have so discouraged them that
She experiment was abandoned
In 1883 democratic congress. finding the
country destitute Of silver. though we had
coined up to that time more than $50
10000, Of that metal. determined to re-
store 1t to our circulation bv coming
1t n subsidiary money and overhaul
Circulation. and to prevent int the oVsr-Valned
silver from so raising prices as to expei the
gold they took from private depositors the
count. and within such limits as should be
prescribed by the Sc Rotary OF the treasury.
The subsidiary silver was coined at the ratio
of 1898 to l. 1t was over-valued about per
cent. and yet in the judgment OF the men Of
that congress. that WAS margin of profit
enough to take all the gold out of our circula-
ton.
What would they have thought OF a PROPOSE
ton to keep both gold and silver in circula ion
with unlimited coinage OF silver at 80 per cent |
discount?
This was not republican, but Q democratic
congress 1t was presided over by David R.
4 tchison q Missouri in the senate. and Lynn |
Boyd. of Kentucky. in the house. R. NJ 7. !
Hunter. distinguished democratic statesman
Z ON Virginia. was Chairman OF the committee !
N imam n the senate ami George ). Hons. !
too. one of the greatest statesmen Alafaml !
ever pro iuceu Was chairman of the coIami: tee !.
ou ways and ineinS in the EssuS.. IN that CON- |
1ress we sam Houston. RuSk. Douglas. (!
rass Hendricks. Bright. Shields Breckenridge /
md other DISTINGUISHED democratic leaders.
Mr.. Hunter. who introduced the bill in the |
senate and reported 1t from the finance COM |
nittee. said in his report that the great meas
IRE of readIusting the legal ratio between gold |
and silver can not be safely attempted until |
some ornament relation between the market |
Taiue, of the two metals shall be esta bii-hed. /
Ii il could not be safely attempted when gold t
vas discount OF per cent. can it be safely |
attempted when silver is at discount of 20 per !
emit:
Mr. Hunter and the democratic statesmen !
hat supported him determined that it was safe |
% permit the existing standard of gold to re- |
,air They determined that the proper ratio |
20 establish and keep common standard OF /
both metals should be left for future settle |
nent when conditions were more favorable. |
md they contented themselves with the safer |
policy that preserved the standard of all exist