Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1896-08-13

e '"erchahdise, and he held tina
4 Ito annul the use Of either of IN
g metals as money is to abridge In
9 quantity OF circulating medium
1 and IS liable to all the obiectioa
4 which arise from a comparison q
4 the benefits OF a full with the evil
I OF scant circulating medium. ;
In this view Mr.. jefferson concur
> ed, saying that "the unit mus,
stand upon both metals"
It was found that the CONNER.
cial ratio was Is to /, and Congress,
by resolution July @. 17s5. declared
that the money unit should be \
dollar, and by resolution of Augus,
8, 1856, fixed that dollar at 371.
grams OF fine silver and 24a grains
OF pure gold. which were thought
to respectively represent the com
mercial value of the metals to be
coined.
tthat time both metals were in
universal use as primary money.
The commercial value of silver
and gold bullion, like other COM
modlties, is controlled by the law
OF supply and demand, and so soon
as the United States and the Euro
pean nations closed their mints to
silver the decreased demand lessened
the price of silver bullion, while
theincreased demand for gold there
bycaused increased the price of gold.
Thus the two metals parted co.a-
pany in valuc Hs well as in money
use.
1t will hardly be questioned that
international free coinage would
restore silver to par with gold. In
such case gold, no longer having
the monopoly, but being in COM
petition with silver, would fall in
price and silver would rise until
parity was reached.
1t will also be conceded that the
parity would be maintained with
free coinage by the United States
alone at ratio Of 80 to /. This is
what is meant by some when they
say, "Put n dollars worth of sill
yer in a silver dollar"
The fallacy Of the contention for
taking the present commercial
values as the basis of the coinage
ratio is that it leaves ont of consid-
Grafton the increased market price
of silver that would come from its
increased use caused by it restor-
alton to mintage. A.
Could it be definitely ascertained
n advance what effect free coinage
would produce on the price, the ra-
IL Id now be fixed accordingly.
IN e problem would be solved.
That there would be a rise in sill
'er by restoring that metal to free
coinage in our mints is clear. IL is
'qually clear that there wonld be
corresponding fall in the price of
,old. Whether gold would fall
md silver rise until the parity be-
ween them were permanently re-
tored depends upon the question
whether the demand for silver mon
y would equal the supply.
1t seems clear that free coinage
y the United States would for the
Ime being restore the parity in this
ountry, for no one would take less
han Sl.29 an ounce for silver bull
On when by sending it to the mints
e could get that price in legal ten
er money.
Whether the United States could
'aintain the parity at that raii"
epends as already said upon
'hether the demand would contin-
e to equal the supply. If silver,
ke clay or iron, were practically
nlimited in quantity, neither the
nited States nor the world could
Iaintain such parity. But silver
n precious metal because the
lie quantity is limited. 1t is not
snerally known that the excess OF
lie worlds product Of gold over
liver from 1850 TO 1895 is more
ian one billion OF dollars. To be
Iact, that excess is 81 ,21G,3j4,-
10. 1t ia a common error TO think
lat in late years silver has been
scovered in fabulous quantities,
1t the Director of our Mint esti-
ates that the commercial value of
e gold product Of the world since
'73 up to 1895 exceeds that of the
Iver products in that period BY
rs, 500, 800.
With these facts in mind, let us
Ok little closer into the question
lether we can now safely open
II mints TO silver.