Pine Bluff daily graphic., 1895-06-09

metals in circulation nt tho same time, changed the legal ratio between them more than 150 times in single century, and finally, in 1876 finding that gold was leav- ing her, and that in ten years her net i'm. ports of silver had amounted to &2S0, 000,. 900, stopped the coinage of legal tender silver, and for 19 years the attempt has been abandoned in that country.
 Many other nations in Europe and other parts of the world have subjected their people to great loss and expense by their adherence to monetary systems based upon the theory that double standard could be maintained, but in no case have they suc- ceeded Iii keeping the coins of the two met ais in use Ut the same time, except for yery short periods. Our own country is nos without experience upon this subject, ana the results here wero just the same as they have been eyerywhere else.
 Previous Monetary Legislation.
 It would be 0 useless consumption of time to go Into Q detailed account of the monetary legislation of this and other coun- tries or to show at length how 1t affected the movements and use of the two metals by Its repeated failures to conform the le- gal ratio to tho actual commercial ratio between them. The groat and tmpor- tant fact conclusively established by the history of that Legislation and It's effects upon the circulation of the coins of the two metals Is that whenever one of them Is ovcrvalucd relatively to the other in tho coinage laws, with free coin age or coinage upon equal terms, and both are made legal tender, the coins of the un- dervalued metal will be driven out of eir- eulation and out of use as money in the country where the unequal valuation Is made The reasons for this are perfectly plain. Both being legal tcnders, tho least valuable coins will always be used In mak- ing payments and will become the meas ures of value in the exchange of commodi- ties, and consequently the more valuable coins will be hoarded or sont out of the country into a market where their real yaluo will bo recognized
 Now, as this Is just what has always oc- curred-at least in modern times, when commercial relations between different countries arc so Intimate and the means of transportation are so rapid and cheap eVen when tho undervaluution or overvhi- uation amounted to only or 3 per cent, l think VIC ure fully justified in concluding that if the United States alone should adopt tho policy of free and unlimited coin age of legal tender silver at tho ratio of l6 to 1, which would be an oyeryaluation of that metal to the amount of loo per cent, all tho gold In the country would be i'm mediatcly hoarded or exported or be held as commodity by spectators engaged In tho business of buying and selling h at a preInium. If this should be the result, the free coinage of silver would not for long time add anything whatever oven nomi- nally, to our stock of money On the con traFy, tho immediate effect of such a policy would bo n contraction to tho extent of fully ono third of our present volume of currency hy the expulsion of about $625,- 900, GOO In gold, and it would require more than l5 years to supply it's place with sill yer dollars even If our mints coined noth- ing else.
 Revolutionary Policy.
 All who have been or may be induced to give their support to this revolutionary policy, upon thoassuranee that twill giyo tho country more money for use in tho transaction of business, will ha greatly disappointed, for they will find, when 1t is too lute, that instead of having more mon- oy they will have less, and that it will be Appreciated i'll value besides. Tho intro duetion into the currency of q country of any kind of money about which there is
 
 drive out tie same amount, or about the same amount Of better money and thus leave the people with substantially tho same volume of currency they had at the beginning The act providing for tho pur- chase of silver bullion and tho issue of lo gal tender treasury notes in payment for 1t was passed on the l4th day of July, 1890, and the purchasing clause of that net WAS repealed Nov. 1, 1893 While it remained in force United States treasury notos were issued to the amount of $155, a31, ,002, and there were many people who believed that this was making material and perma- nont addition to tho volume of our cur roncy, but the official records show that during the same time the net exports of gold from this country amounted to s10B, 419, 49I, so that tho real addition to our circulation accomplished by the Issue of nearly 6156, 900, 000 of new notes was about s52 900, GOO during period of more than three years The mere apprehension that the g0E E9rnment would not be able to maintain the parity of tho two metals un- der the policy inaugurated by that act not only discredited the new treasury notea themselves but the whole volume of our currency, and gold wont out about as fast as the new notes came In.
 While, therefore, 1t is not at all certain that free coinage would ultimately make any considerable addition to our circula- tion, it Is absolutely certain that it would give Us appreciated and fluctuating cur rency, and the question is whether the pro dueers of cotton, wheat, corn, beef, pork, oil, lard cheese and other exportable ar ticles will be benefited or injured by such a result. It is an axiom in trade that the prices of exportable products are fixed in the foreign market where the surplus Is sold and arc fixed in tho currency of that country according to its nominal value there. If sold in England, for illustration, the prices are fixed and paid i'll pounds, shillings and ponce, and not in dollars and cents, and, consequently, 1t makes no dif ference to the foreign purchaser what kind of currency tho producer has at homo. The character or value of the currency in use in the producing country does not af feet the price of tho article abroad to any extent whatever, for the purchaser there trades in his own market and uses his own in min