Belding banner. (Belding, Mich.) 1889-1918, 1896-08-20
THE PRESENT SYSTEM AND FREE
COINAGE.

WY ''iNNi uOlldi WI hOb bC Jhob hs
good and buy just as much under free
coinage as now under the single gold
standard.
Secretary Carlisle, in his recent let
ter to Mr.. +. w. Alsop, of Little Rock,
Ark, in part answers this question.
The Secretary says:
II presume no one supposes for "A
moment that IL would be the duty of
the government TO attempt to keep the
standard silver dollars coined free for
private individuals and corporations,
equal in value to IA gold dollar, or, in
other words, that it would be the duty
OF the government To attempt under Il
system OF free coinage To maintain the
parity of the two metals. The dollars
would be coined on private account
and delivered to private individuals S
and corporations as their own property,
the government having no interest
whatever in them, and being, there
! fore, under no obligations to sustain
them by guaranteeing their value. !"
Since the passage of the act of 1878
all coinage of silver, both dollars and
minor coins, has been on account of
the government. The secretary of the
treasury has purchased the bullion in
open market, according To law; has
then proceeded To coin il into so-called
standard dollars, of 4l2t grains To the
dollar, which dolars-or the certifi-
Gates representing them-have been
paid out by the government itself for
It's necessary expenditures, for salar
les, purchases, public works, etc. Be-
ing thus coined by the government, on
It's own account, and paid out by it for
It's own obligations the government
assumed to keep these dollars good
or at a parity with the gold dollars
One of the means of doing this was
by the retention of the seigniorage or
profit of the coinage in the United
States treasury We find that the act
of February %, 1878 the Bland-Alli-
son act) provided that ''any gain or
seigniorage arising from this coinage
shall be accounted for and paid into
the treasury, as provided under exist
ing law relative to subsidiary coinage.
The act of July II, lS90-the Sher-
man act, as it has been called-con-
tanned the same provision, and also
the following additional declaration
OF the purpose Of the United States:
"That upon demand OF the holder OF
any OF the treasury notes herein pro-
vided for the secretary of the treasury
shall, under such regulations as he
may prescribe, redeem such notes in
gold or silver coin. at his discretion, il
being the established policy of the
United States TO maintain the two
metals on a parity with each other,
upon the present legal ratio, or such
ratio as may be provided by law"
According TO the report of the di-
rector of the mint for 1895, the net
profits on the coinage of silver including
"A small balance on hand June 80, 1878,
to June 30, 1895, was SO, ,643, 1913. Al.
This has been covered into the treas
ury, and constitutes in the hands of
the government fund for maintain
ing the parity of the dollars.
Back of every silver dollar, as now
coined, is, first the silver in the dol
lar; second, the uncoined seigniorage,
representing the difference between
the bullion value and the coinage
value Of the dollar: third, the fact that
the notes under the law of 1890 are re-
deemable in either silver or gold coin,
and fourth, the good faith and obliga-
tlon OF the government to maintain
the gold and silver dollars at parity.
Under free coinage the private spec
ulator, mine owner, syndicate or COR
poration brings its own bullion to the
mint, and has it made into dollars on
their own account. The mint returns
them the dollars made. There is no
seigniorage reserved 1t is done free,
at the cost OF the people, and when it
is done there is nothing back of the
coin but the value of the silver in the
dollars. The government has simply
performed the function OF stamping
the coin. There is no parity fund,
and no obligation of maintaining the
parity.
And if the Chicago platform is to be
enacted into law, we shall all be oblig-
ed to take those alleged dollars in pay
ment of all debts Mt their face.
The owner OF the bullion makes all
the profit there is, and the people take
the loss. That is one difference be-
tween a gold standard and free coin
age.
You often see a man, who hasn't dur
ing long time, been able TO work out
a practical solution OF the problem Of
making comfortable living for him
self and family. And yet he will tell
you how this government ought to run
its finances. He will point out the
errors OF the governments past fnan-
cial history and tell his nation how to
avold poverty in the future. II is real
ly remarkable the brilliant ability
some men have along the line Of run