The Yale expositor., 1895-07-12

Engltch gold ana silver commisslon.)
And this. too, in the face of the dis
continuance OF free coinage OF silver
by Germany, the Latin union and sew
eral other OF the European states and
the United States; the sale Of immense
quantities of silver by Germany and the
scandinavian kingdom, and the out
put of the Comstock lode-a lode which
is now worked out.
At present silver prices are only a
trifie above the average of the eleven
years, 1S67-77. Silver prices, there
fore, have been stable as compared with
gold prices.
II the United States concludes to
treat silver as it treats gold. namely.
give 1t free coinage and at 16 to 1, the
result will be that all our gold will be
cast into the European countries, thus
cheapening gold by raising gold prices,
the place which gold occupied being
taken by silver drawn from the silver
using countries, thus enhancing the
value of silver.
We hold about one-seventh of all the
gold money in the world. BY casting
this off and drawing from the silver
using countries enough silver to supply
its place we take about one-third of ali
the silver money in circulation in sill
ver-standard countries. This will
doubtless re-establish the ratio OF 16
to l or 1914 to l, which is practically
the re-establishment of the bimetallic
standard throughout the world, thus
m Il oil
purposes. Previous to 1878, when the
ratio between silver and gold, was con-
slant at about the legal ratio, fluctua-
ton was half point each side OF l512
to /.
II necessary the United States can
withdraw from its circulation the ma
tional bank notes and let silver certih-
Gates take their place, and can, in fact,
go further by Withdrawing all the
United States notes until such time as
they may be reissued and the ratio OF
16 to l be undisturbed.
This additional use of silver. ccrn-
bined with the amount which takes
the place of gold, would make the total
additional use of silver by the United
States about $1,000. 900, or one-half
OF all the silver money outside the
gold-standard countries. The silver
in the gold-standard countries is mint
ed at 10 1-2 TO /, or 10 to l, and so Will
not come to the United States with its
10 to l law, unless a gold-standard
country enacts law to give up It's
silver, and this is not likely in the face
N ha hi M oil In all
standard countries, besides, our law
can prohibit the importation direct or
indirecD OF silver from gold-standard
countries.
1t is believed that when the United
States makes the start it will not be
obliged to exert its full strength, for
IL will not be alone in securing re-
turn to bimetallism, for there are
several American countries which can
assist by enacting bimetallic laws,
thereby throwing their gold into Euro
pean countries and so helping to secure
the re-establishment Of the 10 to ratio.
Furthermore, before the United
States. If acting alone. should have
drawn TO herself anywhere near the
amount of silver above stated. the low
cred prices for articles now exported
from silver-standard countries would
result, as to many of them, In their
production being Improbable as COM
pared with their other productions; and
with lessened supply from the silver
using countries the price in goid-using
countries would rise above them as
c"~. NOD with other commodities in
@'cN Countries. This applies TO cotton,
wheat, corn, oats AID other grains.
During the past years these products
have been unduly lowered in gold
standard countries through the fall in
the ratio between gold and silver;
reversal of policy would for time give
them an advantage. AS soon as the
prices of articles of trade between gold
Standard countries and silver-standard
countries become such that sixteen and
one-half ounces of silver will purchase
as much as one ounce of gold then the
bimetallic standard is assured.
Another important factor in the re-
establishment of the ratio of 16 to is
the fact that in the countries wherein
the money power has not yet secured
the establishment of the gold standard
changes in price take place slowly,
owing to the habits of the people and
the absence of information. This will
result In silver coming out of those
countries very slowly, and thus the
great demand created in the United
States not being quickly met will re-
suit IL s.lver soon reaching an ex-
change value OF 16 to l.