The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-15
GOLD, SILVER AND PARITY.

A correspondent of the Journal requests
a reply to the following questions which
he says are being asked in good faith by
some seekers after ruth:
If the United States government stands
behind the silver dollars and guarantees
that they shall be kept as good as god,
why could it (the ~government) not con-
tinue to do so. even If we should have free
and unlimited coinage of silver?
Again, If gold should cease to be circu-
lated how could that affect farmers and
laborers generally, provided there would
be plenty of silver in circulation?
There are two sufficient answers to the
first question. First. it does not follow
because the government pledge or policy
of maintaining the parity of silver with
gold is adequate to the task while the
coinage of silver is limited that it could
do so with unlimited coinage. Great as is
the governments present stock Of silver
| dollars and bullion. $435, COO. Oc0 in coin and
SIS. o0O,O in bullion. it is still limited. The
| government has not bought any silver
since the repeal of the purchase clause of
the Sherman act in November. 1882. 1t has
coined a large number of silver dollars,
but all from the bullion purchased before
that time. It's stock of silver has not been
increased any for nearly three years. With
such a limitation Of silver stock and coin
il is possible for the government to main
tain the parity of silver with gold.
though it involves a constant strain. If
the limitation were removed and the door
| thrown wide open to the unlimited coinage
of silver the government credit. great as it
is. would not be able to hold silver up to
parity with gold.
But there is another reason why silver
would not remain at par with gold under
free and coinage. All the silver
heretofore coined has been coined out OF
the government silver on government ac-
count. and the government is in honor
bound to maintain its parity with gold as
the government would coin the bullion
brought to 1t and turn the dollars over TO
the owner. The coinage would be on indi-
vidual account. and the government would
be under no legal or moral obligation 10
protect 1t, even IL it had power to do so.
Secretary Carlisle made this point very
clear in a letter which he wrote in reply
To a gentleman in Arkansas who had
asked for Information on the subject.
After saying that. in his opinion. the whole
volume of our currency would sink to the
silver basis under free coinage, the Sec
| rotary added:
ment that 1t would be the duty OF, the
government to attempt to keep the silver
dollar. coined free for private individuals
and corporations. equal In value TO a gold
dollar, or i'm other words. that IL would be
the duty of the government to attempt.
| under n system of free coinage, to main
tain tho narffN nf the two metals Tho
dollars would be coined on private account
and delivered TO private individuals and
corporations as their own property. the
government having no interest whatever
in them and being. therefore. under no OBJ
legation to sustain them by guaranteeing
their value. Under our existing system all
silver dollars are coined on account of the
government and are issued by the govern
ofher t obl Paymen' and an III it sxpshp' be- an a act
of bad faith. therefore. TO permit them TO
depreciate.
From this 1t is apparent that the dollars
issued under free coinage. having no gov
eminent backing. would inevitably sink 10
their bullion value, just as Mexican dollars
have. and. Of course. they would carry the
entire mass OF silver coinage TO the same
level.
The second question is. IF gold should
| cease to be circulated. how could that af-
y anu 1bOltto StLtlitl. pro-
vided there would be plenty of silver in
| circulation" II Is not a question of the
mere circulation of gold so much as it is
of having the entire volume Of currency
on a gold basis. No person cares TO ham
die gold in preference to other kinds o.
money. provided the other kinds are good
as gold. There is not much gold in active
circulation now. but II Is in the country
and the whole volume of our currency is.
as yet. good as gold. The last treasury
] statement shows that the entire amount OF