New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-13
PAYMENT IN SILVER.
HOW THE GOVERNMENT COULD DE-
sTROY THE PARITY OF THE METALS.
THE BENEFIT WHICH THE OWNER OF SILVER
NINE WOULD DERIVE FROM FREE COINAGE

THE BENEFIT WHICH THE OWNER OF A SILVER
NINE WOULD DERIVE FROM FREE COINAGE.
To the Editor of The Tribune.
Sir. II is said that France has a gold standard.
and that the Minister OF Finance exercises the
power and does pay all Government Obligations III
gold or silver at his option III this be true. please
explain how he pay silver at his option ana
still maintain a gold standard? II France Is able
TO do this why cannot own Secretary do the
same?
Please explain how the owner of the silver mine
would he benefited by the free and unlimited com
age OF silver II Il be true that the silver wheh
coined would only be worth It's bullion vaIue,
Washington Court House Ohio. Aug. 8, 1896.
The problem Of maintaining the parity OF gold
and silver is less complicated in France than 1t Is
here, because France has no legaI-tender notes
like our greenbacks to deal with. Otherwise the
situation Is very similar. The fve-franc silver
pieces of France like our silver dollars. are a full
legal tender for all debts. public and private. The
option of payment in either gold silver is left
with the debtor and If the Government happens
TO he the debtor. then the option rests with the
Minister OF Finance the Secretary OF the Treas
ury. If the French Minister of Finance or our
Secretary Of the Treasury should so exercise his
option as to force either metal on an unwilling
uses his option with discretion and gives the cred
itor the kind Of money most acceptable no trouble
follow from the mere possession Of the option
II is optional with our Government to pay its
bonds or Its notes in "coin'-either gold or silver.
So far no Administration has favored making
these payments IN silver therefore credit has
been maintained and United States bonds and
notes are still measured in gold II the Govern
ment should exercise its option and enforce silver
payments. disregarding the clause of the law Of
1890 which declares It TO be the policy Of this
Government to maintain the parity OF the two
metals. gold would doubtless at once go to pre-
MUM and the price Of bonds and the value OF
legal-tender notes would fall to a silver basis.
similar result would follow In France if like ex
ercse OF the power vested in the Minister Of
Finance made
The owner of a silver mine would be benefited
In three ways by free coinage. If ne were in
debt--and most OF them are. could easily get
into debt-he would be enabled to pay off his
debt in cheap dollars. With every ounce Of sill
yer he possesses he can pay off about 10
cents of debt Under free coinage eacn ounce
Of silver would pay 81 % of debt. He would
also benefit by cheaper labor In mining his sill
yer Under changed conditions Of currency. the
price Of labor i. always the last thing to move.
It is a maxim Of political economy thai the
curve Of wages always lags behind the curve
Of prices" At present the silver-mire owner
can pay less than 20 cents OF wages with each
ounce of silver Under free coinage he could pay
81 % Of wage. with each ounce. The result
would be an enormous profit to the mine-Owner
at the expense OF the wage-earner Finally.
there would doubtless be a temporary specu-
lative advance In the price Of silver under free
coinage from which the mine-owneT would
beneft.-(Ed