The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-05-24
faots established by he experience a. al


law tFst all he silver bullion Or foreign
silver coins. presented at the r'irtS by in
diytduals or corporations foreign ~ do
mestic. shall he coined az the public eN-
parse into silver dollars at the ratio of Is
70 with gold. and that the coins SO made
a the Tsuhlic EXPENSE shall - delivered
- the owners % the hullson or foreign
silver coins. as the case may Re. and all
the people 81 the United States but no.
body else. shall NJ compelled by law % ~
ceive fhsrn as dollars - full valas IN the
payments or debts due - them from their
own feIlow-citizens and from the citizens
of subjects % other countries. X IS not
proposed that citizens or subjects
Of other countries with whom
our people trade shall he compelled 20 re-
ceive these silver dollars In their transac-
tioDs with us. because thae can he done
only ny international agreement, and our
inpa tient free coinage friends declare
their determination 10 proceed at once in
deperdently Of all other governments.
All who are indebted 20 rs are. therefore.
10 have the privilege Of paving IN silver.
while all 10 whom we shall become in
debted are 70 have the privilege OF requir-
ing us 10 pay in gold.
Ny own opinion is that after we had
passed a certain limit the mere silver dol
lars we coined the less they would be
worth. because the imitation itself would
power. The attempt TO coin the two met
ais without limit 20 amount
into fun legal tender money and
keep both in circulation at the
same time has been made by nearly every
civilized nation In the world. and has fall
ed in every one Of them. England persist
ed In the attempt for nearly SEQ years,
and notwithstanding severe penal stat
utes against the expectation of coins or
10 m all
effort and adopt the single standard.
France, in her efforts 10 keep the coins
Of the two metals in circulation at the
same time. changed the legal ratio be-
tween them more than l50 times in a SIN
gle century, and finally. in 1Ss6. finding
that gold was leaving her and that In ten
years her net imports OF silver had
amounted 10 2So.0oo. 600. stopped the coin
age of legal tender silver, and for nineteen
years the attempt has been abandoned IN
that country. Both being legal tenders,
the least valuable coin will always he
used in making payments. and will become
the measure of values in the exchange or
commodities and consequently the more
valuable coin would be boarded or sent
out OF the country into market where
their real value would be recognized. The
free coinage of silver would not Tor a long
time add anything whatever, even nomi
v.
trary. the immediate effect of such pol
Icy would be a contraction TO the extent
of fully one third OF our present volume
of currency by the expulsion of about S62a.-
900 900 in gold. and 1t would require more
than fifteen years TO supply its place With
silver dollars. even If our minis coined
nothing else.
While the act providing for the pur-
chase of silver bullion and the Issue OF
aAs.a In nm N
for IL remained in force. United States
treasury notes were issued to the amount
of sl55 93i. 600 and there were many people
who believed that this was making ma
terial and permanent addition TO the vol
ume of our currency; but during the same
time the net exports of gold from this
country amounted to $l03. sl9l. so that
the real addition to our circulation accom-
pIished by the issue of nearly sl56.0o0.o 600 Of
new notes was about 525e0.000 during pc
riod of more than three years. The mere
APPREHENSION that the government would
not be able TO maintain the parity of the
two metals under the policy inaugurated
by that act not only discredited the new
treasury notes themselves but the whole
volume of our currency. and gold went out
about as fast as the new notes came In.
While, therefore. II is not at all certain
that free coinage would ultimately make
ton. it is absolutely certain that II would
give us a deprecated and finctuating cur
rency and the question Is whether the
producers of exportable articles would be
benefited or injured by such a result. The
prices of exportable products are fixed in
the foreign markets, where the surplus
Is sold in he currency OF that country ac-
cording 10 its nominal value there. The
establishment of silver standard here
- he of
cotton or wheat or any other American
product in Liverpool. Paris or Berlin.
whatever effect II might have unon the
nominal price IN this country. The only
effect would be that the exchange would
be doubled and the pound sterling, instead
of being worth 81 s66 In our currency. as II
IS now would be worth S9.732. and when
our people wanted TO make remittance
10 pay debt abroad they would have to
pay twice as much in our money for the
same number OF pounds as they pay now.
while the foreigner who wanted TO make
a remittance 70 pay debt would pay only
half as much in his money for the same
number OF dollars as he now pays.
In addition to the risk OF a fall In the
price of the products abroad, he must IN
cur the risk OF rise In the price Of sl-
yer between fhe time Of his purchase and
the time when he receives the proceeds
Of his sale for II silver rises In tho mean
time he may not get back as many dol
lars as he paid out.
When silver is worth 90 cents per ounce,
the bullion contained in a silver dollar
- worth 4s.4 cents. hat II the price of
silver should advance 70 81 cents per
ounce. the value Of fhe bullion contained
in silver dollar would be IS cents~an
increase Of nearly ~ per cent. TIE price
OF cotton or wheat VIII not rise IN pro-
norton 20 the depreciation Of the dollar
- -
purchaser for export viii not pay for u
AZ the rate OF - cents for each dollar
ySa4en silver is worth 50 cents an ounce,
because he knows that silver may rise
10 81 or So cents per ounce before he can
sell the product abroad and get his money
for f. and he knows thsf II this happens
the gold he receives abroad cannot he eX-
hanged for as many silver dollars as he
T8sd the producer here. The assertion
that a fall In prices has occurred since
1S7a due TO the appreciation of gold. IS
so Inconsistent with we'll known econon-
l,,s and historical facts that It sesHns
s.aroelv worth while 20 give - a serious
consideration. / presume even me most
ardent advocate OF free coinage would Dc
willing 20 admit that labor-savfng ma
,-4fnerv extension of railroad systems. re-
dtlctfons in freight rates. use or telegram
on land and sea. the applications OF elec-
+rteItv the greatly reduced rate or IN
.arest raf for the use ~ capital and
many other things have arectei prices
an s0vla measure, AT least. and yet they
ignore all these great influences N taeir
argument upon ihe subject ana attrlpa'e
Tire lower prices % commodities TO "A
,.s-s,ls alleged and inadequate cause-the
,Dr.ra~sation of gold 7 presume. also.
mat our free coinage friends will admit
.asf n the change IN prices has BEEN
,.anSof entirely by the appreciation OF
gold. the reduction would have affected
IL -. aEae t.a-cause lE cannot De de-