The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-22

Not unless other people had something
they were willing to exchange for corn and
O.-Does not the introduction of coined
money change the character Of commercial
transactions2
A.-The reasons which make the tempo
rary or market value of things depend on
and permanent value upon their cost of pro-
duction are as applicable to monetary sys-
ten as to system Of barter. ,o,a
ent on legislation?
A.-The value of money metal is depend
rapidly of Of its circulation
Q.-What is the first requisite OF good
Instability.
els there general disposition among among
metal subord.nating silver?
A-This tendency. noticeable in the early
part Of the century, tn has yery
twenty-five years ago, in all civilized ma
lions.
A.-Bimetallism is the legalized use OF
two metals in the currency of country at
oNIs it possible to maintain these metals
in circulation at fixed ratio with free
coinage?
A-Experience proves it to be impossible
unless the bullion in each coin at some fixed
ratio is equivalent in commercial value. The
result is that the metal overvalued at the
mint leaves the country. This causes gen
eral fiuctuation of values. This fact was
noticed by John Stuart Mill, who says that
when both metals are legal tender at a
fixed valuation money is less stable thar
when the exclusive standard of the currency
is either gold or silver Instead Of being
affected only by the variations in the cost
of production of one metal 1t is subject TO
arrangement from two.
Q.-Has any nation succeeded in maintain
ing bimetallic currency with free coinage
of both metals?
A-The United States tried it for eighty
The effort results in the practical adoption
of one standard and of one metal. In the
Senate of the United States in a speech de-
Webster said .sThere is but one money
standard for the country. and the standard
of value to be established by Congress is to
be currency and not bullion merely; be-
cause we find it is to be coined, that IS, 1t is
to be one or the other of the precious met
passing therefore by tale. THAT IS to be
the standard, of value
tons have sought to fix legal ratio be-
tween silver. and gold different from the
A.NThey have lost the undervalued
metal.
Q.-What nations have attempted to main
tain a bimetallici standard?
A.-Mexico, the nations of South America,
China, Japan.
Q.-What has been the result?
A.-These nations have in effect adopted
the silver as their single standard.
Q.-What nations have adopted the single
A-England. Germany, United States. and
Coinage COLI Of silver silver Sweden, Norway. Holland,
Switzerland; in short. ali Europe.
Q.-In these cases has the result been to
expel silver?
AIN the nations where gold is stand
ard large quantity of silver is maintained
in circulation. In nations where silver is
the standard no gold circulates.
Q.-What effect has the gold standard
Alt has only the effect it has upon
commerce-it gives stability to all values
worthy of note that the nations having
gold their standard of value and using
both metals In their currency have the
wages.
Q.-when did Germany adopt the single
A.-After her war with France The pay
ment of the indemnity by France gave Ger
many control of large stock of gold, and
of the opportunity to reform the currency
system of the empire The various states
then brought together one nation had
seventeen varieties of gold money and sixty
six different coins of silver having full legal
cent of the circulation. The new system es-
tablished gold the sole monetary sys-
tenn, with silver limited to $3.50 per capita
and its legal tender value limited to S..
Q.-What effect had this action of Ger
A.IThe Latin Union comprising the
five countries snS the ffans md
flood their mints to the exclusion of gold.
in 1874 restricted. and in 1878 entirely sus-
pended the coinage of silver five francs.
Q.-When did the decline of silver be-
come marked?
AIN 1873 the price of bar silver in Lon
don was s1.S0 per ounce. In 1883 it had
fallen to S094 In 1894 it had fallen to
$0.63ls: or in twenty years it had declined
Q-What effect had this decline in value
upon the worlds production of silver?
worlds production of silver was 6s,2s7,Ooo
ounces In 1882 it was 800 ounces.
In other words, while the value has de-
creased one-half the production has in
creased two and one-half
Q.-What has been the effect upon the
worlds progress of these 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 commerce been
greater; never has wealth been more rapid
ly accumulated: never has there been SO
much abundance for distributing on SO fa-
vorable terms to the masses: never, finally,
would an ounce of silver exchange for so
much of sugar, wheat, wool. iron. copper,
1880. '' - - - -
Q-Can any of the recent disturbances
be attributed to the suspension of the free
coinage of silver?
silver was followed by seventeen years of
unprecedented and universal prospe rity.
The more recent disturbances are traceabe
Q-To what causes are the disturbances
in the United States traceable?
A.-The Republican explanation of the
hard times and financial stringency since is
the attempt of the silver monometallsts to
establish free coinage and the expulsion of
gold and the action of the Democrats in
Congress in passing the Wilson free-trade
BILL cutting down wages and prices and de-
stroying confidence OF business men in
future values To the withdrawal of foreign
capital from America because of these free
silver-coinage threats And to ill-consid-
cred legislation concerning capital which
generally marks of low prices.
Q-Would the free coinage Of silver by
the United States restore its market value?
Alt would not. Admitting, merely for
the sake of argument, that the decline has
been due to the closing of the minis to sill
Yer by many nations. free coinage by one
could not restore former equilibrium.
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.
Q.-IS there 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
Is to /, but at that ratio few silver dollars
were coined And in 1905 President Jeffer-
son, by an executive order, closed the minis
to the coinage of the silver dollar. In 1894
Congress changed the ratio to is to | with
the avowed purpose of securing gold cur
rency.
Q.-What was the effect of this slight
generalization of gold?
Ave secured gold and lost our silver
Q.-What would be the effect should we