The Anaconda standard., 1895-05-09

Secretary Morton Writes Another
Letter About Money.
SILVER GIVES HIM CRAMPS
In a Long Article He Shows Why
He and Cleveland Proposes
to Save This Country
From Ruin.

washington, May 7.-Secretary MQr7f
fon has written a letter to James Al
Cherry of Denver. Col. In answer 70
a letter from that gentleman criticiz-
ing some statements in the interview
with the secretary of agriculture,
printed two weeks ago, which caused
so much comment. 1t is as follows:
"From your letter of April 22. 1895,
IL appears you and 1 perfectly agree
in the fundamental point. namely de-
mand and supply inexorably regulate
all values whatsoever. at all times and
in all places. At what points do we
begin to separate from each other ana
then go on to conclusions so utterly
diverse? These points are only two
the first historical. and the second log
ical.
"First-You assume certain PROPOSE
tions to be true of silver. which are
not historically true & all. but quite
the reverse of true. You say. for In
stance, until 1873 the chief use of sill
yer was for coinage 1t had other
uses. but the demand for its coinage
purposes was steady and constant. On
this point you have been monstrousiy
misinformed. The first federal coins
of silver We're minted In 17s4 and OF
gold In 1895. Their ratio was recon-
mended by Alexander Hamilton and
ixed by act of congress. II was Is
to 4. IL was hoped thus to keep the
two metals in equilibrio on the coin
age. But they would not even come
into equilibrio on that ratio, still less
would they stay there. Only 321 sill
yer dollar pieces were coined at the
American mint in the entire year of
1906, because the silver was worth
more out of coinage than in II, and
worth more for export than for do
the matter
with those silver dollars? Nothing;
only they were too valuable. May J.
1906, there came an order from Presi-
dent Jefferson to the director of the
mint at Philadelphia that all the sill
yer to be coined at the mint shall bt
of the largest pieces shall not exceed
half a dollar The reason given by the
president for this order was that con
siderable purchases have been made o
dollars coined at the mint for the pur
pose of exporting them. and IL is prob
able further purchases and expectation
will be made
'"The coinage of silver dollars thu
authoritatively suspended at tn
American mint was not resumed ther
for 80 years. In these few facts, whicl
are official and unquestionable, behol
the beauties and advantages OF
double standard. The unlimited coin
age of both metals in an enacted an
constant ratio with each other.
by the law of 1884 the ratio wa
substantially put at TO 16. But thi
was going too far into the opposite d.
rection. Gold was not worth 16 in 81
yer In the markets of Europe. Conss
quently the International current of III
metals was now for a time reversed
silver passing in preference aboard
liquidate the balances of trade. an
gold coming in small quantities to n
xuh AZ xxyaQ TIM
3 per cent dearer in silver than
Europe. BY 1853 the immense disas
vantages of a double standard had b'
come so plain to all the thinking pee
pie, that congress wisely determined
abandon the utterly futile attempt
and TO make gold the legal tender Il
debts, except for sums of IS and unde
I'm the second place. as an instans
of an historical assumption, contrar
to the facts and natural inference. a
low me respectfully TO call your a
tention TO the use. In common wit
many bimetallists. SO called. OF Il
date of 1873 as the time of the demon
tization of silver Unless I am mistal
en- the silver dollar is not mention,
at all. one way or the other. In the a
OF 1873. All the demonetization OF 81
yer, as 1 understand IL. tn
ever came about In this countr
happened in the year OF 1858. aft
full discussion and practically wi
unanimity, when congress introduc'
the subsidiary silver coinage. OF whi'
a nominal dollars worth weighed 8.
per cent less than the silver dolla
and also took away the legal tend
quality Of all silver In payment
debts of over IS in amount.
ssSecond-You employ over and ov
again in your letter the two most col
mon logical failacies that enter In