The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-29
A HYPOTHETIC CASE.

The Director of the Mint in his last an
| nual report points out some of the defect
| i've features of our present currency sys-
| tenn and discusses some measures of re-
| form Among the latter he regards as es-
sential an increase in the amount of our
| gold currency the final retirement OF the
greenbacks and treasury notes issued undcr
the act of 1890, and the issuance, in lieu
thereof, of gold coin o. of gold ana silver
coin, under proper limitation of the amount
of the latter. The discussion of these prop
ositions in connection with other measures
of currency reform will be order after
the present attempt to debase the currency
and put the country on silver basis shall
have been defeated. The following extract
from the report of the Director has spe-
cial bearing on the present situation. lie
says:
1t is certain that any scheme for the re-
form of our currency which uoes not con-
template the continued suspension of the
coinage of full legal-tender siiVe:, except
by virtue of an international agreement.
and perhaps, at an altered ratio. would
prove abortive. The free coinage of silver
by the United States alone. especially al
the legal rate of to 16 while the CONNER
cial ratio is about / to %. means for this
country the single silver standard and de-
probation of its currency, for at the legal
ratio of to 16 silver is not the equal of
gold in coinage out of it, This will be-
come evident if, for the sake of argument
it be supposed that both metals are freely
coined, but both deprived IF their tull le-
gal tender power. If. in the batrle of the
standards, the legislative power did lot
interfere in favor of the deprecated metal,
by making the coins stamped out OF it tull
legal tender either alone or coucurrently
with the more valuable metal the struggle
for silver and the monetary question would
soon be settled; and in the struggle Tor ex-
istence between the gold standard, the
double standard. and the single standard
the httest for all purposes OF trade and in
all forms of commercial intercourse would
alone survive. 1t is safe to say that if in the
United States at this moment the free and
unlimited coinage of both gold and silver
were guaranteed by law, but both gold and
silver coins deprived of their legal-tender
power, it being left to the creditor, whether
a capitalist demanding the payment of in
terest on his loaned money or day laborer
his weeks wages. whether the millionaire
receiving his dividends collecting the
value of his coupons, the planter the price
OF his cotton or TOBACCO the Farmer or ms
wheat, or the humble shopkeeper that of
the few yards of cloth. or the few pounds
of beef or butter he has sold, all would de-
mand the coin least liable to fuctuation of
value and farthest removed from the reach
of unforeseen contingencies-tha is. the
millionaire and the laborer the rich and
the poor man alike would insist pay
ment in gold, and would refuse 1t In sill
yer.
This, be it remembered, is not from a
partisan speech or campaign document. but
from official report of the Director of
the Mint. made in November, 1895. His
statement TO what would happen under
the free coinage of both gold and silver a.
the ratio of 16 to l, if neither was made
legal tender, is undoubtedly correct. If
the law favored neither a gold currency
above a silver currency, a silver cur
rency above a gold but left it to the free
and unconstrained action of the people to
choose between them, they would inevi-
tably choose that which always and
everywhere least subject to deterioration
whose value depended upon itself and not
upon Congress, nor upon legal-tender acts,
but upon free and not compulsory accept
ance. In other words, under existing cir
cumstances they would choose gold and
not silver. If the two metals were stripped
of all adventurous aids ana Legislative props
the people would soon settle the battle of
the standards what jefferson called
ssc0pnmprcial principleS