The times. [volume] (Richmond, Va.) 1890-1903, 1896-06-06
HOW SILVER WAS DEMOSITIZl

The Times has received the following
letter:
! Editor Of The Times:
Please kindly explain at some length in
your editorial columns under what cir
cumstanccs silver was demonetized, as
advocates OF free and unlimited coinage
| claim that II was done thrugh fraud.
And. briefly. what would have been
the effect II interests on bonds had been
paid by Mr.. Carlisle in silver and not in
| gold. G.
Granville county. n. c.. May q. 1896.
We have explained the circumstances
under which the demonetizlng act las II
is miscalledD was passed over and over
again. but we suppose it is our duty 10
continue explaining 1t. so that we take
plcaure in furnishing our correspondent
with tho information he wants.
When we set up for ourselves as a ma
ton. more than a hundred years ago.
monetary system was, Of course, necessary
and we determined to have bimetallism.
| Careful Investigations Of the relative
value Of gold to silver in the bullion
markets were made by Mr.. jefferson,
representing the Democratic party, and
Alexander Hamilton, representing the
| Federal party in General Washington's
| Cabinet, and they came 10 the conclusion
that the ratio stood as Is to 1. That is
that fifteen ounces Of silver were worth
exactly one ounce of gold. An act Of
| Congress was accordingly passed. provid-
| ing that fifteen ounces Of silver should
be coined into the same number Of dollars
! that one ounce Of gold was coined into
| This did gold an Injustice. One ounce
| OF gold was worth little more than fif-
! teen ounces Of silver. and the gold dollar
was therefore, worth about one and one
! eighth cents more than the silver dollar.
| Consequently. that happened which
always has happened in such cases and
which always must happen. The gold
dollar refused to circulate upon even
terms with the silver dollar-it vas either
| boarded or eXported-and tho country
went upon an exclusively silver basis
| This remained the case until 1894 when
| Congress determined TO take measures
for bringing gold into circulation again.
| Accordingly. an act was passed in that
! year. amended by another in 1897. which
| reduced the gold in a dollar that made
the ratio 10 to l instead of Is to /, and
that has been our ratio ever since.
but when the change was made a slight
| injustice was done TO silver. Sixteen
ounces of silver were worth little more
than one ounce of gold and the silver
dollar was, therefore. worth a trihe more
than the gold dollar. Accordingly, that
happened which had happened before.
The silver dollar refused TO circulate
upon terms Of equality with the gold dol
lar, and we consequently went upon a
gold basis and remained upon it exclu-
sivey until the war. During the war and
after. until 1S1s. we sed no coin. but
paper exclusively. in 1870 our mint and
coinage laws being in a state OF great
confusion the Comptroller of the Cur
rency, Mr.. John jay Knox. recommended
TO the Secretary of the Treasury, Mr.
George L. Boutwell, that there should be
a revision and codhcatiOn of them. Mr.
Boutwell, requested Mr.. Knox. assisted by
several experts in the matter, to prepare
general revision Of the mint laws.
When they took Up the work they were
confronted with the fact that the govern
ment had never IN all its history coined
but 100000 of silver dollar pieces. and
that silver dollars had not been used by
the Ieople since 1919. They asked them
selves. therefore, what was the good Of
continuing a provision for coming the
silver dollar? They concluded that it
would he wise to drop this provision, and
they so recommended in a written re-
port Mr.. Boutwell, sent this report 10
Congress and recommended the same
thing. The report was printed by Con-
gress at least dozen separate times. It
was circulated for several sessions
amongst all the members. the subject
was deliberately investigated by the COM
mittees Of Congl ess the debates over the
bill iii more than a hundred pages OF
the Congressional Record and show that
the members perfectly understood provi-
sion for the silver dollar piece was being
dropped. and the revised act, dropping
provision for the silver dollar. was passed
in lS.s. rohody paic any attention to 1t
at the time, but in 1876 the mines OF the
now silver States began 10 make enor-
nous and unexpected yield and silver
beran TO fall in value. Then the owners
Of these mines raised clamor that
,hare should be free coinage Of silver
because that would enable them 10 sell
their silver 10 the people of the United
States at the old-time price Of silver
Silver has gone on declining in value
until the silver in dollar. at the ratio
OF l6 TO /. is worth only about fifty-one
cents. and If we should restore free coin
age CT silver at that ratio. the mine
owners would have splendid time
while the rest of US would be ruined.
That is the whole case. This article be-
ing Ions enough we will answer the
second question tomorrow.
THE UPsHOT OF IHE CONVENTION
The adoption by the StauntOn con-