The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-10-08
THE FIFTY CENT DOLLAR.

dollar is 48 2 cents. In other words, the
silver in our standard dollar is worth as
bullion but 518 cents--a fraction less !
than fifty.two cents. Here, then, is
difference in the value of the silver dollar |
and the same weight of silver bullion Of
forty eight cents, difference that arises
out of the fat Of law.
The silver dollar is available for use as
money, while silver bullion is not. In
brief, silver bullion, by the closing of our
mints to free coinage, has been demone-
tized, but the silver dollar, save for the
exception clause as to its legal tender
quality that makes 1t possible for in
dividuals to demonetize 1t by private
contract, is monetized as of old. And
being monetized it is sought after by
those with debts to pay. As gold goes
no farther in paying debts dollar for
dollar than our silver dollar, those with
debts to pay have no preference for 70 d
over silver. Either gold or silver is
equally serviceabe to them and natural
ly in rendering payments for debls they
will tender that money which they can
most readily obtain.
| II gold commands premium, be it
ever so slight, debtors will not tender
gold in payment OF their debts. II they
have gold but no other money at hand
they will not tender gold, but they will
take it to some broker where they can
Sell it 50 as to put the premium into their
their creditors. And on the other hand,
if they have not money in hand of any
kind but are dependent on the sale of
property, as most debtors are, to realize
the needed IN ney, they will not re-
ceive gold from those whom they sci
their property but that money which
can be had most readily, for even should
it happen that the purchasers of their
goods had gold in hand such purchasers
would not use it in pay ent but would
sell it for other money that commanded
no premium but that would go just as
far in paying for their purchases, for by
so doing they would make profit of
the premium.
For instance, suppose gold command
ed premium of one-half of one per
cent, or, in other words, that one hun
dred silver dollars and, fifty-cent piece
besides could be had in exchange for
500 in gold coin, it is clear that no one
having his gold and aware of this pre-
mum would pay it away at its face value,
but would, if obliged to part with it,
take it around and sell it to the bullion
broker Offering the premium so as to
pocket the fitty-cent piece that was
offered as premium for every 500 of
gold. Thus the debtor with a debt to
pay and knowing full well that one hun
dred silver dollars would go just as far s
800 in gold would make no effort to get
god to tender in payment, or t he had
gold he would s-ll it for silver so as to
make the fifty cents. The result, of
course, woull be that those having gold
and payments to make would strive to
dispose of their gold in exthanke for
silver. Consequently everyone who
possessed gold but could not afford to
hoard it and keep it in idleness would
not pass it away at its face value, but
would strive to sell it 50 as to make a
profit of the premium, while no one
would pay this premium who had not
some especial use to which to put gold
and for which use silver would not serve
Our silver dollar is a eff y-cent dol
lar" only in the sense that its bullion
value is but little more than half of its
face value. As bullion it is indeed worth
but 81 cents, but rs coin it is the equal
of gold. On the silver dollar falls a
monetary demand that cannot be felt by
silver bullion so long as our mints are
closed to the free coinage of silver, and
consequently t e silver dollar has a
grea er value than the silver bullion of
which it is Composed. Not that the
silver dollar is in any way redeemable in
gold; but simply because the demand
for the silver dollar is much greater than
the demand for silver bullion. II the
mints were open to the free coinage of
silver, this could not be; for then the
monetary demand would spread over
silver equally with silver coin. The re
sult would be that silver coined ami sill
yer uncoined would have one aud the
same value.
So, under the free coinage, We would
coin no "iifty .cent dollar" We would coin
no dollar that would be worth more as
coin than as bullion; for the 37li grains
of pure silver of which the silver dollar
is made would everywhere have the
value of the silver dollar, whether coined
or not.
THE GOLD STANDARD DOOMED.