Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-21
F R EE COINAGE.
Its Meaning According to Senator
Jones and Director Preston.
OTHER QUESTIONS ALSO ANSWERED
A Detailed Explanation Of the Ratio
of 16 to |.
FIN INFORMATION

A number of persons have written to The
Star for answers to these questions:
What Is meant by the free coinage Of
silver? What is meant by the ratio Of 10
to 1? What is meant by bimetallism?
What is meant by single standard, gold or
silver?"
These questions were submitted to Sena-
tor Jones Of Arkansas, chairman Of the
democratic national committee. and Direc-
tor Of the Mint Preston.
What Senator Jones Says.
Mr.. Jones says:
THE free coinage Of silver means coinage
of silver without charge for mintage, just
as gold is now coined and as silver was
coined prior to 1873.
'"The ratio Of 16 to / means that there
shall be sixteen times as much pure silver
by weight in a silver dollar as there is
pure gold in gold dollar. fn The true ratio, 'in
that In force just prior to 1873. is small
fraction under 16 to 1, but 1t Is spoken OF
in round numbers 16 to 1.
I'VE mea1. by bimetallsm the use OF both
gold and silver in coinage at the same tune
as standard money. The single standard.
gold or silver, means the Demonstration
Of one metal and the use Of the other. only.
as standard money
What Mr.. Preston Says.
Mr.. Robert E. Preston, director of the
mint, says:
l. What is meant by the free coinage Of
silver?
Ans-The right Of individuals to deposit
standard silver in any amount at the mints
and have it coined into full legal tender
coins.
2 What is meant by the ratio Of 16 to L?
Ans.-The ratio in coinage of 16 to
means that 16 ounces OF pure silver coined
| shall have the same value as one ounce
Of pure gold coined-namely, $20.61.
g. What is meant by bimetallism?
Ans.-The unlimited coinage Of both gold
and silver. on private account. into full
legal tender coins. N-
l. What is meant by single standard.
gold silver?
Ans.-That only one metal shall be coin
ed on private account into full legal tender
coins, and that only the favored metal
shall be coined without limit.
Inquiries of the Director of the Mint.
Mr.. Preston, director of the mint. Treas
ury Department, is in receipt OF daily
growing mail from all sections of the coun-
try devoted to requests for Information on
financial topics. The questions cover every
conceivable phase Of the currency question,
and the inquirers are Of all shades of po-
litical belief. Most of them want informa-
ton that can be easily furnished such. for
instance. as the total amount Of the coinage
and silver In circulation In the United
States. the present value of different coins.
ETC.. but many Of the questions are Of a
more abstruse nature and would tax the
officials to answer them properly
The bureau Is doing all 1t can to meet
the demand upon It educational in
stitution, and Director Preston says that
he could easily dispose of 25,OO0 copies Of
the last annual report of his bureau IL he
had them for distribution.
Mr.. Preston has made the following
simple and comprehensive statement in re-
gard to the coinage ratio between gold and
that point:
What 10 to 1 Really Is.
AL standard silver dollars coined by the
mints Of the United States since the pass
age Of the act of January 1s, 1887, have
been coined in the ratio Of l to 15.9SS4,
generally called the ratio Of to 49, 15 9SS4-
being very nearly 1e. Still, to reach accu-
rate results, the former, and not the latter,
figure must be used in calculation. The
ratio is obtained in this way: The silver
dollar contains .25 grains Of pure silver
and the gold dollar 3:22 grains Of pure
gold If you divide 371.25 by 1922 you will
get the ratio Of weight between a gold dol
lar and silver dollar, that is. 15 9SS+-
1t Is true that to be on par with gold
silver would (at our ratio( be worth 81. 1920.
The reason Is this. a gold dollar contains
q .2 grains Of pure gold. In an ounce, or
4aO grains, of gold there are as many dol
lars as 1922 is contained times in 48O, Or
ore ounce. If you divide 4sO by 22 you
get $2O.67, the number Of dollars that can
be coined out of an ounce of pure gold: In
other words, the money equivalent of one
ounce of gold or of 15.9Ss4 ounces of silver
at the ratio Of to 15.9S84.
Now, II 15.9SS4 ounces Of silver be worth
$1O67, one ounce will be worth 81 1929 as
you can prove by simple division. The
same result is obtained by dividing 4sO
grains or one ounce of silver by an
the number of grains of pure silver in
standard silver dollar, at the ratio of / to
15:eSS4, which gives $1.2929.
u.,,x Sixteen ounces OF pure silver will coin
nttle more than one ounce Of gold 159SS4
ounces Of silver will coin exactly the same
amount OF money as one ounce of gold
that Is, $O67. You can prove this by
dividing 159SS4 ounces by 3T25 grains
The operation is as follows:
1b.9Ss4 multiplied by $50 divided by 81 .25
equals $2O.874.
1t is not true that 16 ounces of silver will
coin only 1850 at the ratio of to 18.
As Will be- seen above, one ounce Of silver
will coin $1.2929 Multiplying 81 1929 by 10
gives $2O.6S You can make the same re-
suit in another way; sixteen ounces Troy
or 7,6SO grains divided by 37125 gives the
number OF silver dollars that can be coin
ed out Of sixteen ounces of silver.
1850 divided by 371.25 equals $2OeS.