Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-05-10
COMMON SENSE.
Exposes the FaIIacies Of the Coins School
Tract.

Q-What effect has the gold standard
upon wages?
Alt has only the effect it has upon
commerce-it gives stability to all values
and increased facilities for exchange. 1t
is worthy of note that the nations having
gold as their standard of value and using
both metal in their currency have the
largest commerce and the highest scale of
wages.
Q.-When did Germany adopt the
single gold standard?
A.-After her war with France. The
payment of the indemnity by France gave
Germany control of large stock of gold,
and her rulers determined to take advan-
tage of the opportunity to reform the cur
rency system of the empire. The various
states then brought together as one nation
had II varieties of gold money and 66
different coins of silver having full legal
tender value. The silver constituted IS
per cent of the circulation. The new sys-
TEN established gold as the sole monetary
system, with silver limited to So. 80 per
capita and its legal tender value limited
to So.
Q.-What effect had this action of Ger
many on other nations?
A.-The Latin Union" comprising
the five countries using the franc system
France, Belgium, Italy, Switzerland,
and Greece-fearing Gcrmany's silver
would flood their minis to the exclusion
of gold, in 1874, restricted, and in 1873
entirely suspended the coinage of silver
five francs.
Q-When did the decline of silver be-
come marked?
AIN 1878 the price of bar silver in
London was S1.30 per ounce. In 1883 it
had fallen to 1904. In 1894 it had fallen
to so. 6314 or in 20 years it had declined
e-half
Q-What effect had this decline in val
lie upon the worlds production of silver?
Alt has steadily increased. In 1878
the worlds production of silver was 63. =
267, 900 ounces in 1892 it was 1872, O6l,
500 ounces. In other words, while the
value has decreased one-half the produc-
ton has increased two and one-half
Q.-What has been the effect upon the
worlds progress of the economic changes?
A.--Never before in any corresponding
period of time, according to David A.
Wells, 'has labor been so productive
never has the volume of trade and com
MERGE been greater; never has wealth been
more rapidly accumulated: never has
there been SO much abundance for distr
buting on SO favorable terms to the masses
never, finally, would an ounce of silver
exchange for so much of sugar, wheat,
wool, iron, copper, and COAL as in the
period from 1878 to 1890.
Q.-Can any of the recent disturbances
be attributed to the suspension of the free
coinage of silver?
A.-The suspension of the free coinage
of silver was followed by II years of un-
precedentcd and universal prosperity.
The more recent disturbances are trace
able to other causes.
Q.-Would the free coinage of silver by
the United States restore it's market val
nc?
Alt would not. Admitting, merely
for the sake of argument, that the decline
has been due to the closing of the mints to
silver by many nations, free coinage by
one could not restore the former equili-
brium.
Q-Is there any natural, Interchangeable
ratio between the value of gold and silver:
A.-No more than there is between corn
and wheat, cotton and WOOL iron and
steel, or the Democratic and Republican
vote
O.-Is there a constitutional ratio be-
tween the value of gold and silver?
A.-None; the constitution leaves the
matter to the control of Congress.
Q.-Has Congress ever changed the
legal ratio:
AIN 1898 Congress adopted the ratio
OF 10 to /, but at that ratio few silver
dollars were coined And in 1906 Presi-
dent Jefferson, by an executive order,
closed the minis to the coinage of the sill
yer dollar. In 1884 Congress changed the
ratio to 16 to l with the avowed purpose
OF securing gold currency.
Q.-What was the effect of this slight
over valuation of gold?
Ave secured gold and lost our sill
yer.
Q.-What would be the effect should we
now over-value silver 100 per cent?
Ave would get all of the silver we
could pay for and lose all our gold
Q.-What rule did hsr jefferson lay
down for establishing a ratio between
| gold and silver?
AIR jefferson said. Just princi.