The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1896-07-23
ible attachments Advancement has been

worked out through wars, oppression ana
murder. Perfection is not an attribute
OF any human creation.
So much by way of general statement.
The ratio of silver to gold has steadily
changed from the earliest records to the
present time What we are told has been
mainly due to the "crime OF 1873" has
been IL progress from the 14th century
And feature of this OF peculiar interest
at present is. that the more prosperous
the times, the more rapid the decline in
the value of silver. There were periods
when it rallied but these were periods of
depression and the tendency was always
downward. The nearest approach to
gold of which there is a record, was in the
18th century when the ratio was 7 to I,
though In some countries it was II to /,
One can trace steady decline down to
the present, at times slow. at times rapid.
La France the ratio was changed 80
times in 100 years. Two causes ALWAYS
operated, increased volume of business
nA1N iCuccu " SllNeE. LEWIS
were enacted and every possible scheme
put IN practice to stay this downward
tendency, but all to no avail. The laws
of business were memorable.
Leaving, for the present, the discussion
of money in general, some attention will
be given to the ratio in the United States
and An explanation Of what free coinage
means.
The Pilot learns there are many people
who do not fully understand what is
meant by the ratio 1G TO /. 1t means
that 16 pounds of silver shall be equal to
one pound of gold. That is 1t is desired
that the law declare that l6 pounds of
silver shall be equal to one pound of
gold. The commercial or bullion ratio
between the metals is about 80 pounds
OF silver to l pound of gold. That is,
person having one pound of gold can now
buy with it 30 pounds of silver. The
change which the Chicago platform de-
mands is that l6 pounds of silver shall
iiIohO 40 lhuuy OOlldiS "lllCu SuHll De la-
gal tender for debts, as one pound IN
gold. The ratio fixed by law when the
mint WIS provided for in 1892 was u to ].
or 10 pounds of silver were declared
equal TO one pound of gold. This was
nearly the commercial ratio at that time.
A pound of gold then would purchase in
the markets of the world fifteen and two
ffths pounds of silver.
There were only 100000 of silver dol
lars coined up to 1873. In the meantime
the ratio had been changed to 1G to l,
though this was not the true CONNIE, cial
ratio. There has been no free coinage Of
silver in the United States since 1873.
1t has been coined en- government &C.
count since 1878. That is the govern
ment buys the silver bullion, pays the
owner of 1t on receipt and CONS it on it's
own account. The law of 1878 made it
imperative on the government to pur-
chase and coin 100000 of silver per
month. In 1890 it was required to pur-
chase over S4,50O,000 worth of silver per
month and issue silver certificates for it,
these certificates being legal tender, With
single modification. This was restrict
ed coinage. The government guaranteed
the silver dollar as being worth one dol.
lar 10 gold. 1t bought at bullion value
and issued at coin value and guaranteed
the coin. The government has lost heav-
lily by the operation as silver has decreas-
ed steadily IN value. Of the 1924, 7S9. 500
silver dollars coined, $369273,6SS lie idle
IN the treasury. About so per cent. of
the smaller silver coins circulate.
The law requiring the purchase of sill
yer by the government was repealed IN
1893. Now the proposition is to have
free coinage of silver. That is a person
having $1,000 worth of gold bullion sends
1t to the mint and receives it in silver dol
lars to the amount of, in round numbers,
$1,000. These $1,000 are legal tender for
payment of debt. The person who re-
celves the coln IN exchange for his bullion
can pay debt of $1,000 and have 5000
left. But be it understood. the govern
ment does not guarantee that the dollar
shall be as good as the gold dollar, as 1t
does now. 1t never does that in the case
OF free coinage. 1t will guarantee nothing
by Its stamp except that that coin had
'chen COINED SO many grams of silver
and was SO pure. In every transaction,
except IN payment of debts, the silver
coin will pass for its bullion value. There |
Is no one benefited by free coinage except
The debtor, and he not much unless be |
owns silver bullion. The creditor who |
the 81 900 in silver has money |
with purchasing power of about 500,
unless he use it to pay debt in which
case the government makes it full legal
,ender.
Our present silver dollar is worth a
gold dollar anywhere because under re.
'trlcted coinage the government stands
pack OF 1t and guarantees it. Under free
coinage the government guarantees moth
ng except as to the quantity of silver in
he coin. Under free coinage we ex-
change silver dollar which is absolute
y good while the government lasts, for
iollar which is just one-half cheat.
The Pilot has anticipated somewhat In
ieallng with free coinage. 1t will in next
weeks issue, and regularly hereafter,
ave some facts on finances, both of this
country ana foreign countries, and try to
tate the facts SO that they shall be clear
O all.