The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-16
history OF THE TRADE DOLLAR.
How n Syndicate Made Millions
Specializing with 1t.

Specializing With 1t.
John Phin in the New York Independent
When first suggested the trade dollar
was not intended for domestic circulation
and this was distinctly stated in the elab-
crate report of the late DR.. Linderman, the
director of the mint The trade dollar was
to be virtually a small ingot bearing the
United States stamp indicating Its weight
and fneness; and the object in preparing
such an ingot was to provide an outlet in
the eastern markets for our American sill
yer. But when the bill was reported in
the Senate by Mr.. Sherman, the trade dol
lar was included In the regular silver coin
age and made legal tender to the extent
of IS.
This did no harm at the time, because
silver then brought such a price that the
trade dollar was worth 10i cents in gold
Moreover, the coin did not circulate in
the eastern states. the greenbaoks being
legal tender, although not redeemabe But
on the Pacific coast the metallic standard
had been enforced by public opinion the
deprecated greenbacks was not used, and
the trade dollars had considerable cir
culation.
But about this time the price of silver
began to fall and in 1876 an act was passed
taking away the legal tender quality from
the trade dollar and reducing 1t to mere
bullion The dollars still circulated how
ever, and gradually worked their way
east where they came into common use
among the working classes and small bus
mess men. At last the discrepancy be-
came so great that they fell into disrepute
merchants refused to take them, and they
were bought up by the makers and bull
Ion dealers al discount, varying from Is
to 80 per cent.
As soon as they fell sufficiently a syndi-
IN Oh tuI 70
buy and hold them until congress could
be persuaded to pass a law redeeming
them at their full face value. In order
to secure the passage of such law
several United States legislators were ad-
mitted to the syndicate ION the ground
floor" and by their influence the law was
passed March g. 1887 In this way the
syndicate was enabled to "scoop i'm the
millions of dollars Of which the working
classes and the small business men had
been robbed by the two previous laws
the first making the trade dollar legal
tender, and thus forcing its circulation
tender quality and throwing 1t into the
hands of the brokers. In other words, the
United States government issued several
million checks for 81 each, and then re-
pudiated them. If a business man had
done this he would have found himself
behind prison bars.
have thus detailed the history OF the
trade dollar because there are several
very important lessons to be drawn from
it. Most of these lessons are too obvious
to require explanation; but there is one
point which l trust will be borne care
fully in mind, and that Is that there is
no more insidious. effective and devilish
method of fobbing the wage-earner than
by producing changes in the standard Of
value. 1t is by causing arbitrary changes
in the values Of great properties that the
unearned fortunes Of Wall street have
been made. And as It Is now so it has
always been. The browning charge of
oppression and dishonesty brought by
the patriarch of old against his father
in-law, Laban, was IN these words: Thou
hast changed my wages ten times"