Mexico weekly ledger., 1895-09-19
MILLS ON SILVER.
The Texas Senator Writes an In
teresting Letter
Reviewing the Coinage History OF the
United states-He Is willing to stand
In the Footprints of Jefferson
In Money Matters

In Money Matters.
WASHINGTON, Sept. 10.-Senator
Mills, Of Texas, has addressed the fol-
lowing letter to the chairman of the
democratic state committee of Texas:
WASHINGTON, D. c. Sept. 7, 1895.
Hon. 5ames G. Dudley, Chairman Of Democratic
State Committee:
DEAR SRI have been called upon to give to
the people of Texas an expression OF my opin-
ion on the financial questions now being dis
state. / have spoken In and out Of congress on
all the phases OF the pending controversy and
had supposed that my opinions were known to
all OF my constituents. 1 repeat now what I
have so often said, that 1 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 coinage of silver
and gold at 10 to ! as long as ! could see a 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 Ii the increased coinage
OF all other countries kept pace with ours.
But increasing the volume OF our money will
not increase the prices In other countries I'M
less IL is the standard money Of other coun-
tries whose volume win increase.
Tn 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 auy country
where money does not circulate. The opening
of our mints to the unlimited coinage OF silver
Will increase the price In the United States,
but not in Europe. As the prices OF mmod
ties rise here, the value of the dollar 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 commodities than here.
To illustrate: If a bushel of wheat is quot
ed at 81 In London, it is 81 in gold, and the
price IN New York is the same in gold. less the
cost incident TO transportation, Now, If our
circulation is increased 0per cent, at 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 to New York. to exchange for wheat. as
the mtnts continued to increase the volume,
the gold would continue to 40 to Europe for
wheat, cotton and other commodities, and as
soon as 1t was seen that the unlimited coinage
of silver was the established law of the United
States, all creditors for their own protection
would make their debts payable In silver dol
lars at the market value OF SIN grains of I'M
coined silver, and the obligations 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.
It is a mistake to suppose that we can in
crease prices IN this country on the gold
standard by coming silver without limit.
The money We put in our circulation must
either flow out itself or drive out the standard.
One or Lle Otnef must take place.
II we increase our circulation with gold as
we did from 1880 to 1880, it will raise prices
now as It did then and flow out to restore the
Level. As the gold leaves its volume decreases
and It's 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 or paper the increased prices make
gold flow out, but as 1t goes out, the silver not
only takes its place, but continues to drive out
that which remains In the circulation as fast
as the volume Is enlarged. Every gold dollar
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 con 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 37lts
grains of pure silver.
The gold in our gold dollar being twice as
valuable as the silver in our silver dollar, the
prices of all property measured by silver will
| be twice as high as when measured by gold.
Being once fixeu on the silver standard, they
can ca at not rise se above Deas tn baa no{ plane sn 6y o any amount m UNI
circulation for IL Will flow out Of the cireula-
when Il Is the standard q value. oHd o'ea
From 1850 to 1890 We took from our mines
$500, 900, coo of gold; yet in 1850 our circulation
only showed s22s 600 900 Of both gold and silver.
| More than half the gold went to the markets.
From l792 or 1895 We took from our mines
se.ols ,sSe 7es in gold. but we only have to-day
about S5OO, 080, 900 in our circulation and In our
treasury. Three-fourths of 1t has left-and
left because it was worth more In the markets
as metal than in the circulation as money,
The decreased value Of home and increased
value abroad took 1t away.
We have twice In our history tried the ex.
pertinent OF making a compound standard OF
gold and silver, and stgnally failed IN both In
stances.
coinage Of both gold ana silver. BY the ratio
adopted, gold was undervsiued; The average
1884 was more than 4 per cent, greater than the
average value of the silver in our silver dol.
lar. This was margin enough, and more thar
enough, to take all OF our gold coins out OF oul
circulation and send them to the markets fol
sale. The consequence was that this country
was on a silver standard with a silver circula'
tion almost exclusively. This proved to be &
great inconvenience to the country, and aftel
the war Of 1912 had passed and the industrie.
Of the country began to expand and our prod
ucts were multiplying and seeking markets
everywhere, It was seen that tho absence O.
gold was a great hindrance to commercial
movement.
In 1918 the agitation began in earnest for thu
restoration OF gold to our currency. It contin.
ued until 1884. when to restore 1t the ratio was
from that to Is .9ss to /. which Is commonly
called 10 to /. The minis were then opened Il
the unlimited coinage OF both metals at that
rotfo. By this adjustment silver was under.
valued. From 1884 to 1853 the silver In a silveI
dollar averaged annually 2a per cent. more In
the market than the gold in a gold dollar. A,
q consequence. 1t left the circulation, and We
had gold as the standard, and an almost ex-
elusive gold metallic circulation. These two
conspicuous failures in the efforts of oul
statesmen to make a compound standard OF
values seem to have SO discouraged them thai
the experiment was abandoned.
In 1858 q democratic congress, finding the
country destitute of silver, though We hat
coined up to that time more than ss5.,
100000 Of that metal, determined to re,
1t as q subsidiary money and overhaul.
ing 1t enough, to keep the coins in oul
circulation. and to prevent the over-valuei
silver from so raising prices as to expel the
gold they took from private depositors the
right of coinage, confined 1t to government 40.
Sosns. as4 b wi' tse s ssSn Limits q t IS s arsasal ,;
The subsidiary silver was coined at the ratit
Of i4s5 to J.. II was over-valued about Q Pc
that congress. that was a margin OF prod
enough to take all the gold out of our circula
What would they have thought of a PROPOSE
ton to keep both gold and silver In circulation
with unlimited coinage Of silver at 80 per cent
This was not a republican, but a democrats
congress. It was presided over by David r
Atohtson, Of Missouri, iu the senate, and Lynn
Boyd. OF Kentucky, IN the house. r. NJ, 7
Hunter, q distinguished democratic Statesman
from Virginia, was chairman of the COMMITTEES
On fnanc =, IL nth The senate; and George s aons
ever produced. was chairman OF the committe
on ways and means In the house. In that con
Cass, Hendricks, Bright, Shields, breckenrldg
and other distinguished democratic leaders.
Mr.. Hunter, who introduced the bill In tn
senate and reported It from the finance com
rnittee, said In his report that 1.-The great meas
ure of readjusting the legal ratio between Goi
some permanent relation between tie marke
values Of the two metals shall be established,
II IL could not be safely attempted when gol
Was at a discount OF 4 per cent: can 1t be safel
attempted when silver is at a discount of 30 pc
cent?
- him AatarninAT m at II rva Q q a Z
to permit the existing standard of gold TO re
main. They determined that the proper rati
TO establish and keep a common standard {
both metals should be let for future settle
and they contented themselves with the safe
policy that preserved the standard OF all exis
Ing contracts and provided for o fractional 81
Yer currency to meet the demands OF every-dt
When the bill passed the senate and wen.
the house, 1t was reported from the commit,
of ways and means by Mr.. Durham of Indian
q distinguished democratic representative. +
was very explicit in his statement of ths ol
{eots sought to.be obtained by the bill. W
Intend" he said, Ito do what the best write
on political economy have approved what e
periepco where the experiment has been trtt
has demonstrated to be best. and what u
committee believes TO be necessary and prop
to make but one standard OF currency and
make all others subservieut to It. We mean
make the gold the standard coin and to nal
these new silver coins applicable and col
~veuient, not for large, but for small transa
tons
The introduction of the gold standard VI
done by . democratic congress near the a
nuinfstrstion OF Andrew Jackson. and wac u
result OF an effort to restore gold 70 our etre1
democratic congress In isss a. the best t.
Gould be attained under extstine condition
and a. conditions have grown inlmsasurap
s sSrss ~, saIes 81 se osn 40 oh now ny /. 1 10 faiioW the the :,
ample set for US By Democratic Statesmen