Greenbrier independent. [volume] (Lewisburg, Va. [W. Va.]) 1859-1980, 1896-10-01

effect of keeping the American mint
open.
On the 18th day of February, 1878,
the coinage of the standard silver
dollar was stopped. At that time the
silver in the dollar was worth small
fraction more than the gold in gold
dollor. Had the American mint re,
manned open, it Is not at all likely
that those of the Latin Union would
have closed. This is evidenced by
the fact that those mints were not
closed down all at once. When they
found themselves being crowded by
bullion from mines and the melted
silver of Germany besides, they first
limited their coinage to a certain
amount each year. A few months
later it was limited still more
Other limitations were imposed
from time to time, but not until
1878 was the coinage suspended
This plainly indicated an unwilling
ness to stop the coinage of silver,
and had the United States mint re-
mained open the Latin Union would
have had strong support, and it is
very doubtful if it would have linn
tied silver coinage at all. In this
connection it must be understood
that the chief disturbing element at
the time was the melted silver that
Germany was disposing of. 1t was
not known just how much Germany
would sell, or how long the sales
would continue, but plainly they
could not be kept up very long, and
as matter of fact, they were
stopped in 1879. Very wild stories
were floating around concerning the
fabulous richness of the American
silver mines, and when the United
States Joined i'm the warfare upon
the metal, its own product, but it
was natural that the countries of the
Latin Union should take the alarm.
But suppose the mints of the
Latin Union had been closed just as
they were, and those of the United
States had remained open. What
then would have been the effect p
AS stated at the outset, no one is JUS
tilted in speaking ex cathedra on
such a question but every reasona-
Bile probability is in favor of the
maintenance of silver on a substan-
tial parity with gold at the ratio Of
16 to 1. That is the holding of sill
YER at about 81 30 per ounce in gold.
The United States at that time
contained over 100000, 900 of people,
and the population was increasing
more than 1000, 900 year. 1t was
country of high prices, new, and
undergoing development on gi-
gantic scale. No other country in
the world approached it in capacity
for the absorption and use of money.
In that respect it was vastly greater
than Germany, and free coinage in
this country would have far more
than neutraliZed the action of that
empire. We had very little metal
lie money at the time and 8, ,OOO,-
100000 in silver could easily have
been taken into our currency within
the next ten years had it been possi-
BILE for us to get such an amount
During that time the average annual
production was only about S90,OOO,-
900, and of this India alone took an
average Of about $4,000, 900 year.
At the outside figure there would
not have been more than $40, 900, 900
year left for us to absorb after all
other countries had been supplied
Probably $50, 100000 would have
covered the amount.
That we could have taken $40, O,OOO,-
900 or S40,000,00O or $50, ,OOO, 900 will
scarcely be questioned by any one
familiar with the capacity of the
United States. With the American
mint open, ready to take the surplus
and coin 1t at the rate of 81. in
gold, every other country and every
individual must necessarily have paid
the same price. Therefore, the con-
ditions would have been such that all
other countries would have helped
sustain the American mint rate
But it Is said that silver continued
to fall, although we purchased from
1000, 900 to 81 800, 900 worth Of sill
yer each month under the Bland and
Sherman laws. That is true, but the
cases are not parallel. A purchase
Of limited amount is a very differ
ent thing from free coinage. In the
former case the metal all goes pri.
marily to the market, where it is
bought the same as any other COM
modify. Unless the purchase be
sufficient to take all there will, of
course, he surplus left on the mar
ket, and this surplus will "bear"
the price. But under free coinage
there can be no "surplus," and when
it is coined at fixed rate that rate
marks the price for the world, pro.
vided always, that the country coins
on bimetallic principles (that Is, gold
and silver at a fixed ratio, without
discrimination and is large enough
and rich enough to take all that is
not required by other countries.
Since 1883 there has been large
increase of the silver output. SO
has the use of silver increased, and
so have the population, wealth, busi-
ness and resources Of the country
increased. In the double number of
the Bimetaliist of March 11th a
comparison is made between the
United States and the principal coun.
tries of Europe, which should be
read by all who desire clear idea of
the relative power of the American
Republic. In everything that goes
to make up real wealth the United
States is to-day about e-third of
the entire world that is upon the
gold standard. 1t is difficult to see
how any one can doubt that the
United States, aided as 1T would he
to considerable extent by all other
countries, could, by giving silver
free access to it's miDts at the ratio
Of 16 to 1, establish and maintain
that ratio throughout the world.
To do this we would necessarily
part with some of our gold and take