The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1896-10-16
scheme 10 create something out Of moth
ing has proved disastrous.



silver coin and silver certificates, legal
tender notes payable on demand at the
treasury OF the United States in gold,
treasury notes issued under the act known
as the Sherman law redeemable in coin.
gold or silver coin Ont up to this time re-
deemed when presented for redemption
n gold coin) and in national bank notes
The gold coin is money possessing in
trinsie value 70 its face value as money
Melt il. and in bars it would be worth as
much as the coin.
The gold certificates are worth their
face not on account Of their intrinsic value,
which is nothing at all, but because they
can be exchanged at pleasure for gold
coin deposited in the treasury for their re-
denption-
The legal-tender notes possess no intrin-
sic value. but they are at par with
gold because they may be- On demand al
the treasury of the United States, convert
ed int gold. and a reserve Of sloO,ooo, 600
Of gold has been provided by law for their
redemption, and the secretary Of the treas
ury has been authorized, if necessary, 10
sell bonds of the United States 10 provide
gold for their redemption
The national bank notes are secured by
deposits Of United States bonds, and when
q national bank fails or its notes are 10
be withdrawn from circulation the pro-
ceeds of the bonds are applied by the
United STATES 10 the payment Oh Inc HOltS
in gold or its equivalent
The treasury notes. issued for the pur-
chase Of silver bullion under the Sherman
law, while by their terms payable in coin,
were issued under an act Of con-
gress which contains declaration
substantially TO the effect that it
is the policy of the United States
to maintain the parity between gold
and silver coins. and TO do this the secre-
tary of the treasury redeems the notes
presented for redemption in gold
The measure of values in the United
States Is gold-the gold coins Of the
United States. The several kinds of money
just mentioned except gold coin are the
equivalents Of god coin Of the United
States. because they are convertible into
gold coin. The silver coins OF the United
States are intrinsically worth only the
value Of the silver bullion they contain.
something over 30 per cent OF their face.
The silver certificates are intrinsicaliy
worth nothing, but are valuable because
they can be converted into silver coin
which possesses intrinsic value. Both sill
yer coin and silver certificates possess a
purchasing and exchangeable value In ex-
cess OF the value Of the silver they con-
tain or represent by reason of the limited
provision made by the government for
their redemption in gold and the faith OF
the public that the government viii main
tain their circulation as the equivalent Of
gold and will redeem them at their face N
gold.
The free-coinage advocates deny that
any provision Of law exists for the re-
demption in gold of silver coin and sill
Yer certificates. and would have US be-
lieye that silver coin and silver certificates
circulate al par with gold because they
have been given some of the functions of
money. I admit that the redemption Of
sill nas- . 51r-1- -ec in cz~71l
upon presentation TO the United States
treasury has not been provided for as in
the case of gold certificates and legal-ten-
der currency. but it is true nevertheless
that provision for practically limited re-
demption of them has been made.
The silver dollar of the United States
has been issued and put in circulation by
the government substantially with this dec
laration and promise: This coin con-
tains 412l5 grains of standard silver, is in
trinsically worth whatever the bullion it
contains is worth in the markets Of the
world. but il is issued upon the under
| taking Of the United States that il will
| to the extent of the revenue collected by
| the government (some $500, 900. 600 annually
| redeem it in gold by its receipt for public
| dues as the equivalent of a gold dollar
This provision and the faith Of The public
/ that the government will pursue financial
| policy which will maintain the silver
| dollar in circulation as the equivalent of
| the gold dollar has been sufficient hereto
/ fore 10 maintain the parity between our
| gold and silver coin. but there have been
| times when public confidence appeared to
be shaken and they threatened TO part
company. How long this limited redemp-
| ton of silver currency will be sufficient
| 10 keep silver dollars and silver certifi-
Gates at par with gold coin is a question
! upon which there is q wide difference of
| a;,io Me- --~---- 49,
States of the purchase Of silver bullion has
| postponed and let us hope avoided the
| catastrophe which was sure to have fol-
| lowed from a continuation of the policy
| Of increasing our silver and legal-tender
currency without a corresponding increase
| Of gold available for its redemption But
| if duties should be made payable in gold
only. as has been suggested, the silver
| dollar would al once depreciate to its bull
| lion value
The Coinage Laws of the United States
To show that with the free coinage OF
| silver at the ratio of LIS TO by the United
States alone parity between our gold and
silver currency could not be maintained, i.
Is only necessary to refer to our own
| coinage laws, although the histories Of 9th
er nations might be cited and would show
that their experiences have been similar t1
| our own.
From 1872 TO 1884 our coinage laws pro.
vided for the unlimited coinage of both
gold and silver at the ratio of Is to l. and
gold was not coined in this country, or
If coined. left the country
Secretary of the Treasury Hamilton, In
recommending the ratio between gold and
silver Tor coinage, endeavored to adopi
the worlds ratio between gold and silve.
bullion But there was at that time great
oifhculty IN determining the commercial ra-
no between the two metals. The commerce
OF the world was comparatively in its in.
fancy Communication between the United
States and the European countries required
time. At Amsterdam. a record appears Il
have been kept of the commercial ratio be.
tween gold and silver, but / am not in.
formed that such a record was kept else
where
However at the time our mint was estab
lisheo. the legal ratio adopted appears Il
nave been very nearly the worlds CONNER
elai ratio between gold and silver. But yer,
shortly after our legal ratio was fixed a
ID 10 l the commercial ratio between ths
Two metals became more nearly 15lk to l
the coinage ratio Of France. which wa.
enacted in 1876. but which was proba bl,
the same as under previous laws
On account Of this slight overvalua tior
OF silver by our legal ratio, gold could NO
De Kept IN this country. as it was profit
able 10 export il 10 countries where il wa.
worth more In silver than in the UNITED
states None was imported and what
ever was produced in this country wa.
speedily sent abroad Congress at las
determined TO change the coinage ratil