New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1895-05-08
FINANCIAL 6 ATEUHISM
Some 81 the Salient Points Of 0ur IONS.
tary Systsm l(ads Clear. s.

Some of the Salient Points Of Our Mona.
tary syatan lads Olsar.
Edward 8. Corser prepared etolloW.
ing financial catechism in 1878. He re-
publishes itynow and claims that he sees
no reason for changing any Of the an
swers.
What is meant By the demonstration
OF silver?
The restoration to its former place IN
the coinage.of the Umtea States Of the
silver dollar of 412aa grains, standard,
being nine-tenths pure silver, one-tenth
alloy.
WheE was the coinage Of this silver
dollar authorized
By an act Of congress Of January
1887.
What was the position Of this silver 'sr
dollar in our coinage2
It was made the standard unit of our
coin, and a legal tender for all debts,
and in any amount.
How long did it remain the standard
unit Of United States coinagea
Until it was demonetized by act Of
congress of Feb. 10, 1878. II
4 What was the value Of this silver dol
lar as compared with the gold coin OF
the United States? @.
It was steadily at a premium, as COM
pared with gold. and in 1878, when this
silver dollar was demonetized, it was at
premium of 8 per. centum over gold.
: Why has an impression obtained that
the silver dollar was of less value than
the gold dollar at the time Of the de.
monetization by the United States?
Because the subsidiary coin of the
United States, namely, half and quarter
dollars, dimes and half-dimes, were
coined unaer act of congress of Febru.
airy 81, 1858, of less relative value than
the silver dollar. These subsidiary sill
yer coins contained only 1884 grains OF
silver in the dollar, while the ssdollar OF
the fathers contained 4121 grains.
These subsidiary coins were made legal
tender for amounts not exceeding SIS.
Why was the silver dollar of the Unit.
ed States at a premium as compared with
gold9 e
Because the silver dollar contained
412a grains of silver, and the gold dol.
lar 25 $40 grains, making the American
standard nearly Is to /, while the Euro
pean ratio was 15a to l.
During how many years had the ratio
of 151 grains of silver to of gold been
the mistaken relation between the two
metals2 @...s. +
During period of 200 years previ.
Gus to 1874. -. 81. ~...
Was there a variation during. this
period9 :. Z. 55
The variation was slight. At times
duling several successive years the value
of gold would be slightly below that es.
tablished by the general ratio of i to 1551
and then for a period of years the value
of gold would be slightly above the "a.
ito. -. :
What caused these slight variatons2
An increase in supply of gold above
demand caused a slight decline. as com
pared with silver, and diminution in
the supply Of gold caused slight ad.
vance. So. VI
Which metal had the most absolute
stability? r
Silver. AS gold varies greatly in its
annual production, which was about
thirteen millions in the year 1900, about
forty millions in 1S47, about one hum
dred and ninety millions in 1868, and
about eighty-seven millions in 1874. q
! What was the annual production of
silver during same period?
About forty millions in 1900, which
was the annual product until 1860, ris-
ing to sixty millions in 1866, and eighty
millions in 1874.
If gold is so variable in its annual
production, why has there been so little
variation in its value measured by sill
vera
Because both metals being established
as standards, they are tied to each other
inseparably when used as coin, by ra-
ito which varies but slightly from that
Of to 15a.
Had any nation attempted previous to
1870 to disturb the relative values exist
ing between gold and silyer2
Yes. England, in 1916, being q cred
itor nation, dem netlzed silver, her CAPT
talists expecting to increase the spurchas-
. Z H a