The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-07-23
SILVER AND THE LATIN UNION.

| frequent mention IS made OF the Lain
Union in the present money discussion.
ard the object and purposes of this union
are the subject of no little debate. After
1919 gold had fallen in price compared
with silver. The ratio in 1s4s was ISIS,
and in 1859 1919. 1t was continuously be-
low 1850 from 1853 to 1866. The ratio from
1855 advanced from 1913 to 1917 in 1874
These figures are quoted in COINS Finan-
ctal School" at page a. The cause of
the lower ratio from 1919 is attributed to
the great increase Of gold from the Cali
fornia and Australia gold fields. That
was generally conceded to be the cause of
che fall In the price of gold at the time.
| Professor Jevons wrote a work upon "a
Serious Fall in the Value of Gold Ascer-
tained' in 1853. based upon the increased
supply of gold-being SIS. Ooo. 900 from 1s4o-5o
per annum. and SEQ. 10000 thereafter
This is concerned with the ideas of the
time and not as to their correctness. Ger
tain 1t is that the parting OF the ratios
became a disturbing element, especially in
the United States where at the ratio of
IS to silver was at a premium as high as
5 per cent, and passed almost entirely
out of circulation. To remedy this the
| United States made the greatest bluuder
in silver legislation. Instead of making
the ratio correspond with that of leading
nations Of Europe, that silver might be
brought into the mint and into circulation,
the law of 1853 provided for the limited
coinage of fractional silver. The act
provided for the purchase of bullion by the
treasurer of the mint with the approval
IS
purchase acts, the other two being the
acts of 1878 and 1890. This act recognized
the fact that the cheaper money, which
was then gold. viii drive out the dearer
money, which was then silver. The
weight Of dollar in fractional silver was
Ss4 grains, as against 41211 grains of stan
dard silver found in the unit dollar. 1t
recognized the premium upon silver and
conformed subsidiary silver to the cheaper
single standard gold. Silver was out of
circulation and no effort was made to
bring it into circulation except in the
limited subsidiary form. Instead of max
ing a law to remedy the difficulty they
passed an act to confirm it. While silver
commanded a higher price than 1s to l
the silver unit need never be looked for in
one thing but coinage of silver would not
occur while It was more prcfitable to use
it as bullion. Coinage is, after ALL a
private matter, in that tho coined metal
is returned to the bullion owner who will
coin It or not, as IL contributes to his in
dividual profit. While the law of 1853 was
the greatest blunder OF bimetallic legisla-
ton, the first one was made in 1884, making
the ratio IS to I purposeiy overwhelming
gold.
Following the events of 1853 came an
agitation for single silver standard and
the characterization of gold. This was
based upon the idea that the great pro-
duction of gold was causing a serious fall
in the price Of gold, estimated by some
authorities to be as much as % per cent.
Germany was upon the silver standard
and in 1870 but per cent of her coin was
gold. France was rapidly acquiring gold,
and had coined from 1906. the date OF
the Latin Union. s4ts. Coz. SsS of gold against
sS4. 139. $50 of silver. The assertion that
there was a movement of silver to France.
her coinage ratio being I5ia to 1, during
1850 to 1860 IS not borne out by the facts
From 1851 to 1865 the ratio was slightly
below the coinage ratio OF France. that
Is below 49, to l. excepting the year 1852,
when IL was 159. The coinage OF gold
in France was yearly more than three
millions while the coinage of silver was
but SO millions. The movement toward
France was gold, and this registered the
tendency in Europe toward the monetary
use of gold. The absorption of such great
quantities OF gold In the coinage of lead
ing European nations with so small a de-
pr'ectatfon Of its value confirmed Europ-
can opinion IN favor Of gold money. The
scare about the depreciation OF gold dur
ing the eos had largely passed away and
the preference for gold in large trans
actions was rapidly making II the favorite
money metal, while the increased produc- |
ton would prevent a ''gold famine" Tbs
was the conaition OF opinion in Europe in
1865 when the Latin Union was formed
There had been alternative movements |
in France in her COMA &c. Since 1893 the !
ratio in France had been 15i5 to and till |
1850 this differentiation OF silver had |
practically made France a silver nation. |
But after $50 the ratio. owing to the de- |
cline in gold. over-valued gold and the |
gold movement to France set in which /
made France practically a gold nation. |
This brings Us TO the Latin Union. What |
was the occasion for the Latin Union? |
The higher price of silver had so driven ]
II out OF circulation, that there was /
dearth Of fractional currency in the IA
tons OF the Union Switzerland had fol- |
lowed the examples of the United States /
and made her fractional coin $40 pure in i
stead OF 80 pure, and the lower standard /
IN the countries having the franc unit be- /
came a matter Of disturbance. as the less /
valuable coin was driving out the more 1
aluSolc- The states OF the Union. 4
France. italy. Switzerland and Belgium. |
met in conference. They were al for
the gold standard except France. whose 1
position was charged by Soelberr. 10 have 1
been actuztei By a deferenczs 20 the Bank 4
OF France and The Rothschiits The pur-
pose Of tl5e Union may be told II the 1
language OF the treaty. The nations i
equally animated by a desire 10 estzb-
Ism a more complete harmony between
thsar monetary enzct1sencs. 20 remedy the
inconveniences IN regard to intercourse
and tr1osactols between the Inhabitants 1
OF their respective sts,es which result 4
from the difference OF STANDARD % Their
sa1Sidi2ry silver money, AMI 70 contribute
by forming a monetary union between
them TO the progress % a uniformly OF
weighs. % measures and 90 money have
resolved to co1clues an agreement 20 this
e-d-" II vas Al .-.e-7atio1zi agreement
20 establish uniformity n Their monetary
systems ard particularly 10 ha-non.ze
''the difference q standard OF their sub