Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-05-24

majority oil our people.
before proceeding to the discussion
OF Inc main question presented. II may
pe advantageous 10 state as briefly as
possible few admitted or well-estab-
ilshed fscts having an important bear
ing upon It, From the earliest times
gold and silver have been used as
money. not because there was at the
beginning any law declaring them to
De money. but because. by reason OF
their limited and regular supply. their
great value as compared with other
things In proportion 10 weight and bulk
ana their durability. they were more
stable and convenient than any other
commodity as measures of value In
making exchanges. Consequently these
metals were used as money by common
consent of the people for centuries be-
FORE there was any law upon the sub
Ject or any coins In existence; they
passed by weight. and their values in
effecting exchanges were determined
by the quantity OF pure metal contained
IN each piece. Each metal had "A dis
unct value of its own, and when IL was
used In trade neither the buyer nor
seller troubled himself about the ratio
between 1t and the other metal. The
laws of trade fixed and regulated the
actual and relative vaules of both
metals In the purchase and sale of other
commodities, Just as they do now. They
had been used as money several centu-
rles befcie any government undertook,
by royal proclamation or statute law,
to establish a ratio between them. and,
when this character OF legislation was
first begun, the public authorities did
not attempt to establish new values
or new ratios, but accepted those al
ready fixed by the laws of trade and
the custom OF merchants. Coins were
made, not for the purpose of attempt
Ing 10 add anything to the intrinsic or
eNchangeable value OF the metal con-
tanned in them but for the purpose of
attesting, by public authority, Its
weight and purity, thus avoiding the
delay and uncertainty resulting from
the practice OF weighing each piece as
/ II passed from one to another. That
the coinage OF the metals does not now
add anything To their actual value in
| the commercial world IL concluslvcly
proved by the facts that, in all the
/ great transactions between the people
OF different countries, the coins are ac-
cepted only at their bullion value, de-
| termined by their actual weight and
fineness, and that bullion itself is STIR
used in making payments, just as IL
was Thousands OF years ago. What
ever effect legislation upon the ratios.
in connection with legal tender laws.
may have had upon the use Of the two
| metals in the payment OF nntecedent
/ debts, II has never had the slightest
! effect upon the actual or relative values
/ of the two metals In national or inter-
national trade. For many centuries,
even after the commerce Of the world
| had grown TO enormous proportions,
the propriety of making any given
quantity of bullion, or any particular
| coin, legal tender was not even sug-
| gested. and up to the present time there
is no legal tender In International trade.
Whether payments are made in gold
or silver coins, or In gold or silver bull
lion. actual intrinsic value determined
the amount or quantity to be delivered
no matter what may be the legal
tender laws OF the different countries.
ana no matter though they may have
the same or different ratios OF value
between the metals within their re-
spective limits, The law OF France.
| for instance. places higher value
upon silver relatively to gold than
is placed upon It by the laws OF the
| United States, the French ratio being
| Is l-2 to /, and ours being 10 to l; but
II 10 pounds of our silver, coined or
uncolned. were sent to that country
to be used in the payment OF debt or
in the purchase OF commodities. II
would not be accepted at the ratio OF
10 1-2 TO l. or at the ratio of 1G 10 /
az compared to gold, but only at tho
ratio OF about 30 to l, which shows that
neither our ratio nor the French ratio
has any effect whatever upon tho value
or purchasing power OF the metal IT.
self Coinage is free in Mexico, and
the dollar, which is full legal tender
contains 377l7 grains of pure silver,
while our dollars contains only 37i25
grains OF pure silver; yet Mexican sill
yer dollars are sent into the United
States and other parts OF the world
and sold at the price of the bullion
contained in them, which is about one
half their nominal or legal value In
their own country. The legal-tender
laws affect the debt-paying power of
the coin itself in the country where the
laws prevail, but the laws establish
Ing ratio do not affect the value of tho
metal coined In the coins either at
home or abroad. because It In the
metal that fixes the value Of the coin.
and not the coin that fixes the value
of the metal.
For long time. during the early
history of the world, and even during
the medieval age, gold and silver. In
bullion or in the form of coins, con-
stituted almost the entire circulation
among the people. even In the nations
most advanced in trade and civiliza-
ton, and, consequently, the quantity
of these metals that could be procured
and kept In use was u question OF far
greater Importance than 1t is now or
ever can be In the future. When life
and property had been reasonably
secure by the establishment of stable
| governments, and regular processet
were authorized for the enforcement
of pecuniary obligations, credit or con
fidence largely took the places OF bu-
lion and coin in the commercial tranl-
actions of the people, and muih
smalled amount of metallic money WAS
required in proportion to the while
volume OF business done than had
been required before The use OF credit
in the form of bank notes, checks. bills
and other evidences of debt has so
increased In modern times that In all
highly organized commercial ON
munitles the use Of coin, eXcep IN
making change. has been almost en-
tlrely dispensed with. The percentage
of coin actively employed in conduting
business In this country IL 30 snall
that il is almost inappreciabl; 30
small. in fact, that It's dlsuse II our
transactions would not be felt : we
had a substitute for, or a paper rpre-
sentative OF. the subsidiary piecs In
England, France, and some other
countries large amount OF DIN ia
used. because they have no verysmall
notes.
Although we have the gold staidard.
or measure OF value. In this cdntry.
our actual stock OF gold bullid and
coin amounts to only about on-thlrd
OF our actual currency-a condition OF
: affairs which would have beenincon-
; | ,.f,s, bla n fatp centuries ago. Ne nave