Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1896-07-22
OUR SILVER DOLLAR.
Why 1t Is as Good as Gold and Why 1t
Wouldn't BE with Free Coinage.

! Why 1t Is as Good as Gold and Why 1t
Wouldn't Be with Free Coinage.
One Of the most common queries
propounded by silverites, in the lively
discussions on our streets, is why, if
the amount of silver which now circu-
lates as medium of exchange is good
money, wouldn't more of it-that is,
free and unlimited coinage-be equally
as good. This sounds very nice, and
appears perfectly logical, but when ex-
amined closely the fallacy is exposed
Money is a standard of value and is
| used to measure the worth of produce
in trade or commercial dealings. To
be of service as such it must have an
intrinsic value or represent an intriD-
sic value. Under our present none
tary system gold constitutes the stand
ard; silver and all other mediums of
exchange are measured by their rela-
tive value to that metal. The stamp of
the mint does not determine the valne
it is what the bullion contained in
loses it's identity as money and is sold
as a commodity Therefore, it is plain
that if the bullion contained in a silver
dollar cannot be marketed for one hun
dred cents no government under the
sun can arbitrarily assume that it shall
be worth one hundred cents unless
that government pledges its credit to
maintain it at that point. This is what
we are now doing with every silver
dollar that bears the stamp of the
United States mints.
A mar can float his promises to pay
only in proportion to lis wealth or re-
sources. Unless he has property he
cannot secure credit. A government
transacts business in the same manner
as individuals, although on a broader
scale. Its stability is measured by it's
resources. Now, every silver dollar
coined by the government is virtually
an obligation to pay forty seven cents
issued upon the credit Of the United
States, for the simple reason that the
intrinsic worth of the metal contained
in the same is only about ffty-three
cents. This can be done to a limited
extent, so long as the finances are in a
sound condition and the credit of the
country unimpaired, but it must re-
main within the reasonable ability Of
the government to uphold the obliga
ton. Tie minute it cannot do this the
worth of the coin will drop to the value
Of the bullion contained therein. And
for this reason the purchasing clause of
the Sherman law was repealed in 1898,
because we had reached the limit of fif-
ty cent silver, which could be sustained
at an equality with gold. Yet certain
element still clamors for the unlimit-
ed coinage of the white metal.
The question, then, in nutshell, is
whether this country is strong enough
to undertake to coin and maintain at
one hundred cents the silver of the
world, which as bullion is only worth
one half that Surely no thinking man,
IN the light Of past events, can delude
himself into thinking that we are. 1t
has cost us two hundred million dol
lars to maintain what silver ne have,
about $500, 000, 600, ata parity with gold;
do we want to undertake the job for
the rest of the world with it's six bill
lions, at the ratio of 16 to l? If we un-
dertake it we must fail, and failure
means discredit and dishonor abroad,
ruin and reputation at home.