The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-08-17
DISCUSSES THE RATIO QUESTION.
Reasons Given for Opposing a Change of
Amy Amount.

Reasons Given for Opposing "a Change of
Amy Amount.
There are some who, while admitting
the benefits of bimetallism, object to coin.
age at the present ratio II any are de-
ceived by this objection they ought to re-
member that there are no bimetallists who
are earnestly endeavoring to secure it at
any other ratio than 10 TO /. We are OPP
posed to any change in the ratio for two
reasons. First, because a change would
produce great injustice; and second, be
cause "A change in the ratio Is not neces
sary. A change would produce injustice
because If effected in the manner usually
suggested II would result in an enormous
contraction in the volume of standard
money.
If, for instance. ID was decided by inter
national agreement to raise the ratios
throughout the world to 81 to l the change
might be effected in any one of three ways:
The silver dollar could be doubled in size,
so that the new silver dollar would weigh
thirty-two times ds much as the present
gold dollar; or the present gold dollar
could be reduced one half in weight, so that
the present silver dollar would weigh thirty
two times as much us the new gold dollar;
or the change could be made by in creas-
ing the size or the silver dollar and de-
creasing the size of the gold dollar until
the new silver dollar would weigh
thirty-two time as much as the new gold
dollar. Those who have advised a change
in the ratio have usually suggested that
the silver dollar be doubled. IL this change
were made IL would necesstate the re-
coinage of four billions of silver into two
billions of dollars. There would be an i'm
mediate loss of two billions of dollars
either to individuals or to the government.
But this would be the least Of the in
jury. A shr'nkage of one half in the sill
yer money of the world would mean a
shrinkage of one-fourth in the total vol
ume of metallic money. This contraction,
by increasing the value of the dollar,
would virtually increase the debts of the
world billions of dollars and decrease still
more the value OF the property of the
world as measured by dollars. Besides
this immediate result, such "a change in
the ratio would permanently decrease the
annual addition to the worlds supply Of
money, because the annual silver product,
when coined into dollars twice as large,
would make only half as many dollars.
The people of the United States would be
injured by a change in the ratio, not be-
cause they produce silver, but because
they own property and owe debts, and
they cannot afford to thus decrease the
value of their property or increase the
burden of their debts.
In 1873 Mr.. Carlisle said: Mankind
will be fortunate indeed If the annual
production of gold and silver coin shall
keep pace with tie annual increase of
population and industry" l repeat this
assertion. All of the, gold and silver an
nually available for coinage, when con-
verified into coin at the present ratio, will
not, in my Judgment, more than supply
our monetary needs. In supporting the
act of 1890, known as the Sherman act,
Senator Sherman, on June of that year,
said: under the law of February, 1878,
the purchase of s2,OOo.0o worth of silver
bullion a month has by coinage produced
annually an average of nearly three mil
lion dollars per month for period Of
twelve years; but this amount, in view Of
the retirement of the bank notes, will not
increase our currency in proportion to our
increasing population.
"If our present currency is estimated at
81, 400, 100000 and our population is increas.
ing at the ratio OF 3 per cent. per annum
1t would require 81, 100000 increased cir
culation each year to keep pace with the
Increase of population; but as the increase
Of population is accompanied by still
greater ratio of increase of wealth and
business 1t was thought that an imme-
date increase of circulation might be OBJ
tanned by large purchases of silver bullion
to an amount sufficient to make good the
retirement of bank notes and keep pace
with the growth of population. Assum-
ing that s54 200, 900 a year of additional
currency is needed upon this basis, that
amount Is provided for in this bin by the
issue of treasury notes in exchange for
bullion at the market price
If the United States then needed more
than AZ, 600, 900 annually to keep pace with
population and business IL now with a
larger population, needs a still greater
annual addition; and the United States is
only one nation among many. Our oppo-
nents make no adequate provision for the
increasing monetary needs of the world.
In the second place change i'm the ratio
Is not necessary. Hostile legislation has
decreased the demand for silver and low
cred its price when measured by gold,
while this same hostile legislation, by in
creasng the demand for gold, has raised
the value Of gold when measured by other
forms Of property.
CONTRACTS PAYABLE IN GOLD.