The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1896-10-15

tied coinage of both, unless the legal ito
Tor coinage was the same as the CONNER
cial ratio of the bullion values of the two
metals, and it appears to have been
thought lmpracticable to maintain such a
legal ratio. The ratio of Is to l was
adopted by the act of 1884, and as a con-
sequence gold circulated in the United
States and silver rapidly went out of cir
culation and was exported
AS our fractional coin, our half dollars
ana quarter dollars contained proportion
ately the same amount of silver as our
silver dollars, they could not be kept
IN the country, but were exported to be
consigned to the melting pot and In 1853
congress was compelled in order to keep
silver fractional coins in circulation to
reduce the amount of silver in half dol
lars and quarter dollars so that it would
De no longer profitable to export them
The amount of standard silver in the
fractional silver coins of the face value
of dollar, under the act of 1894 was
liked at 1856 grains. Gold was made the
standard, or measure, of value; the legal
tender quality of the fractional coins, in
order that no injustice should be done to
creditors whose claims were payable in
full-weight money, was limited to sums
OF 50, and in order that individuals should
not make a profit out of free coinage of
deprecated silver fractional coins and
that the coinage of silver might be limited
and controlled by the government. the
right of coinage of fractional coins for in
dlviduals was taken away, and the gov
eminent reserved to itself the right to
coin fractional coin from bullion purchased
by it at market rates. Although under
the administration of some subsequent
secretary of the treasury, fractional coins
appear to have been coined for individuals
1t was done without authority of law
Gold and silver never circulated concur
rently in this country while we had
Tree coinage of both, and will never cir
culate concurrently in any country with
free coinage of both, when either is under
valued by the coinage ratio.
The intention of Secretary Hamilton and
of congress in fixing S71A grains of pure
silver as the amount of silver the silver
dollar should contain under the act of 1892
was to make the silver dollar of the
United States the equivalent in value of
the Spanish milled dollars in circulation
in the United States at the time, and the
actual weight and value of the Spanish
silver dollars in the United States were
ascertained by collecting and weighing a
large number of them. But the Spanish
milled silver dollars then in circulation In
the United States were abraded by use to
the extent of 21a per cent.
Our principal foreign trade was then
with the West India islands, and those
engaged in this trade soon found that our
new silver dollars could be exchanged in
the West Indies for the new Spanish
milled dollars, which contained more sill
yer than they did, and that the new
Spanish milled dollars could be melted and
recoined in the United States at a profit,
and the consequence was that as fast as
our mint coined silver dollars they were
taken to the West Indies and exchanged
for new Spanish milled silver dollars, to
go through the same process of being
I'M ell n l1 Of hn INIT cd
States and exported. To prevent this
President jefferson, without any law au-
thorizing it, in 1905. by an order to the
director of the mint, suspended the coin
age of silver dollars, and none were again
coined until $780, except $1,000 in 1886 and
$500 in 1899.
There was great clamor raised against
Secretary Carlisle and President Cleve-
land, because it was alleged that for the
last month or two prior to the taking effect
of the repeal of the purchasing clause of
the Sherman law the full amount of silver
required to be purchased by the sec
rotary of the treasury by that law month
ly had not been purchased The discon-
tinuance of the coinage of silver dollars
by the act of congress in 1878 has
been assailed, misrepresented, and called a
crime. But what shall be said con-
corning the great apostle of democracy,
President Jefferson, and his democratic
coinage of the silver dollar for a third of
a century without authority of law?
The Money of the Constitution.
We hear a great deal about the money of
the constitution but just what is meant
by the expression is not apparent. The
truth is there is no money of the constitu-
ton. The constitutional provisions con-
corning money are as follows:
Congress has power ito coin money and
regulate the value thereof" and mo state
shall make anything but gold and silver
coin a legal tender in payment of debts.'
The grant of power to congress is to coin
money, but it is not provided what metal
shall be coined. The government does coin
nickel and copper, and there Is no const-
tutional prohibition against coming other
metals. If congress could coin only gold
and silver there is no provision that it shall
coin them for individuals or fix the legal
ratio for coming purposes. 1t might coin
either one and not coin the other. Con-
gress has several times changed the legal
alto between gold and silver for coinage
purposes.
This whole talk about the money of the
constitution is the merest clap-trap, intend
ed to catch the ear and deceive those who
have not the time or opportunity to inves-
tigate for themselves.
There Is No Natural Ratio Between
There Is much absurd talk by men Of
ability and even of national reputation
about the Creator having made gold and
silver money, having made them twin
metals. The purpose is to create an i'm
preston that nature has fixed the relative
value of the two metals. Such propo-
sition is too absurd to require refutation.
The values of all the products of human
labor and of all the earth produces are
fixed by the law of supply and demand
Their value depends upon the cost of their
production and their adaptation to supply
the wants of mankind.
Iron, copper, nickel and other metals
skins animals, beads and shells and many
other articles have been used for money
Did the Creator by his fiat make them all
money?
The commercial ratio between gold and
silver, which is fixed by the universal law
of supply and demand, has varied from
age to age, from year to year, and from
month to month, and from day to day of
the same month. 1t has also varied in
different countries.
In Rome, 2O7 years B. c., it was 1850; 1ss
B. c., 10; so B. c., 7.50; so A D., 1880; $50
A. D., 1880. In England it varied from
$50 in 1857 to 1920 in 1717. In 1892 the
worlds ratio was 1917: in 1893 it was 10;
1896. 1856; 1912, 1911 1913, 1925; the next
year. 1914, it was 1904. For most years from
A6nd I