The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1896-09-26
SILVER CATECH|SM
QUESTIONS AND ANSWERS BY AN
ADVOCATE.
Free Coinage Idea Favorably Present
Decentralization and Its Effects
Mint the Bullion"

1 ne equal ltSdl treatment VI lhc INp
metals, gold and silver, as money at a
given ratio of coinage.
What is meant by 16 to L?
That in coming the two metals into
money, 16 ounces of silver are to be
deemed equal to one ounce of gold.
What is the present ratio of silver
and gold bullion?
1t is about 30 to I.
What has caused the divergence be-
of silver?
The decentralization of silver in 1878
by this country and some of the ma
tions of Europe.
Why was silver demonetized?
1t was demonetized because of the
desire to limit the supply of money, to
make money dearer, thus increase its
purchasing power and, therefore, to
the advantage of money dealers, bond
holders, creditor classes and those hav-
ing fixed incomes.
Was not the decentralization of silver
in 1873 due to it's overproduction as
compared with gold?
1t was not due to the over produc-
tion of silver, because for many years
prior to 1878 the worlds production of
gold had been about three times as
great as that of silver, and in 1873 sill
yer bullion was at premium of per
cent over gold.
How does the worlds production of
gold and silver for the last 100 years
compare with each other?
Between the years 1892 and 1892 the
worlds production OF gold exceeded
that of silver about $60t 100000.
What is the ratio of the two metals
as they exist by weight in the world
today available for money?
1t is about Is 2-3 to 1, which means
that there are only about sixteen times
as many tons of silver in the world
available for money as there are tons
of gold.
What. therefore, is the natural ratio
between silver and gold?
Sixteen to one is the natural ratio
between silver and gold bullion, and
would manifestly be the present com
mercial ratio had not there been legal
interference.
To whose advantage is it that ma
tions have been induced to adopt the
gold standard?
To the advantage of all creditor ma
tions, especially England. Two hun
dred million people now use gold alone
as redemption money, who in 1879
used both gold and silver; hence the
constant rise in the power of gold
land the money based on gold) which
rise shows itself in the fall of prices of
commodities.
If we had free coinage of silver
would not this country become the
dumping ground for silver from all
nations?
There are, it is supposed, about four
billion dollars of. silver coin and bull
| lion in the world, and if all of this
should come here it would only give
the United States per capita of about
$5S, which is only a little more than
we had of all kinds of money in the
North at the close of the war when
times were exceedingly prosperous
France today has nearly this amount
of money per capita, and is one of the
most prosperous countries in the
world.
What is there to prevent this silver
/ from coming to our mints for coinage!
There are three conclusive reasons:
First nations have no more sill,
yer than they now need; second
Europe annually uses about twice as
much silver as she produces, and
thirdly the great bulk of silver now
in existence is already coined at ra
tios more favorable to silver than 16 ia
| /, some being Is to /, and some 15K
| to 1.
If silver coin should not come to ouI
mints for recoinage, would not Europe
continue as at present to depress the
price of silver bullion?
North and South America produce
rs per cent of all the silver now being
produced in the world and ten times as
much as Europe does, so that the
United States and the other countries
of the western continent could easily
control the price of silver bullion re
gardless of other nations.
Why not put more silver into oul
silver dollar so as to make the bullioI
and face values equal?