Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1896-04-17

ne VIII only yet SIo.OO PEI ounce lOl IT,
Sec. 3545 of the Revised Statutes provides
for the keeping of money in the mint to pay
for gold bullion as soon as practicable after its
vaue--that is, its fneress---is ascertained.
At one time, the government charged seign'
forage on the coinage of gold Of one-hfth Of
one per cent, but that was abandoned by Act
of January IA, 1875, and since that time the
coinage of gold has been free.
Now, as every one knows that the mint will
take all the gold bullion that is brought to it,
and give coin for it without charge for mintage,
the bullion is just as valuable as gold coin; and
so, gold bar the fneness of which isascer-
tanned is worth just what it makes of gold
coins calculated at the rate of $2o.67 per ounce
of fine gold. If it is not fine gold, he will get
less than $2o.67 per ounce, but lie will get
its value. He has certain market. He
knows he can exchange it for gold money.
Now, what is the transaction if it is not a
sale of gold bullion at the mint price fixed by
law? What is that but MARKET price fixed
by law? The government says to all the world,
If you have gold, bring it to my mint, and
will give you for it egal-tender gold money at
the rate of $500 per ounce Of standard gold,
or $4,000 per ounce of fine gold. If the owner
of the bullion knows what its grade or degree
of fineness is, he can calculate just what he is
to get and he knows that his market (the
mint) is open, and will remain so. He does
not need to watch the market The govern
nent has CREATED A DEMAND that has never
I ~ L IL for
money. No matter how much bullion goes to
the MINT it must be exchanged for coin that
everybody wants and must have, simply be-
cause it is money.
Every government that maintains free COLL
age of gold fixes its VALUE at its mint, and
never inquiries WHAT IT COSTS.
The mines of Cripple Creek, Colorado, have
been producing quantities of gold at from
twenty-five cents to several dollars per ounce,
and when it goes to the mint, the gold that
cost, in labor only twenty-five cents exchanges
for the same amount of coin that the gold does
that cost twenty dollars per ounce.
In 1874, Great Britain required the Bank of
England to buy and pay in its notes (Which
are redeemabe in gold) all the gold bullion
that should be brought to it at the rate of 3
pounds, 7 shillings and pence per ounce, and
then mints it free for the bank at pounds, II
shilings and IoH pence per ounce, thus giving
the bank one and one-llalf pence per ounce for
it's trouble and interest AS the bank notes are
redeemable in gold on presentation, it is prac-
Licaly purchase for gold coin at that rate l
have mentioned. OF course, gold bullion never
sells for less than pounds, II shillings and 9
pence, nor does gold bullion ever sell in this
country BELOW THE MINT PRICE, $500 or
s2o.67, as the case may be.
Yours, truly, H. NJ TELLER.
This tells in very plain language just why
gold bullion don't fuctuate in price. 1t is sim
DIV because its value is FINED BY LAW. The
,ost of production, the law of supply and
leinand, has nothing to do with the price.
Gold, as Senator Teller truthfully says, that
costs but IS cents per ounce to produce, brings
1t the mint Just as much as if its production
cost eighty times as much.
The reason why "hammered- out" twenty
dollar gold-piece is worth Just as much after as
it was before the government stamp was defaced
IS because the bullion therein is worth, under
he LAW, Just the same, whether stamped or
1nstamped. The only practical difference is
hat, when stamped with the fiat of the gov
it thereby becomes money, and is a
ul legal tender, BY LAW, for all debts, public