The weekly Thibodaux sentinel and journal of the 8th Senatorial District. [volume] (Thibodaux, Lna. [i.e. La.]) 1875-1898, 1896-06-27
A FEW QUESTIONS ANSWERED.

a valued friend, who signs himself
"Inqu,rer," on the much discussed ii
n%ancial question.
Inquirer wants to know by what
authority We have stated that under
! free and unlimited coinage we will
have fifty cents dnllars. He has evil
den,ly mistaken III meaning; for
what we did say is, that under free and
unlimited coinage we would have sill
yer dollars ia legal tender for one
hundred cents, when the quantity Of
metal in them is wOrtI, to-day in the
markets Of the wmlG only about fifty
cents.
Free and unlimited coinage by the
United States alone cannOt possibly
have the effect Of raising the market
value to the mint ratio; for the va
ration to-day is too great and what
+ ever difference remains between the
market or commercial value "f the
metal and its mint or legal ratio. to
that extent will We have a deprecated
currency.
What that ditfe, ence will pe, it is
difficult t. toretell, for there are many
conditions to be considered. What
we do know is, that to-day the Next
can dollar, which contains more pure
silver than our silver dollar, is worth,
with Mexico OF a silver basis, a
! little over fifty cents of our money.
There is no good reason to expect that
fee and unlimited coinage by the
United States independently Of The
other great nations Of the world, will
materially raise the value Of silver,
any more than the free and unlimited
| coinage Of that metal by Mexico, Chi
ma. japan, and most of the South
American republics, has raised It.
There are certain fixed laws Of con
merce which cannot be overturned
by legislation.
TlleIaw maker may compel home
creditors to accept III payment ct their
debts deprecated currency but he
cannot control the commercial valEe OF
silver as Il commodity.
Inquirer says, that the free and un-
limited coinage will bring down the
value &C the gold dollar from its pres
ent appreciated value of 200 To its
normal value of 100 cents. This is an
assumption that gold has increased in
value 100 per cent instead OF silver
having decreased in value to the
same extent.
Is this assumpt on correct! To
solve the question We should not COM
pare the two metals with one another,
| but contrast their present purchasing
power in relation to other commodi-
ties with their purchasing power du-
! ring some normal period under free
and unlimited coinage in relation to
| the same commodities. To do this,
we must take some period anterior to
1861, for from that year to 1879 the
the prices reigning were those of a
paper currency of f1uctuating value,
and can form no just basis Of conpar-
ison.
We have not the statistics at hand
but speaking from general information
we venture the statement that one
| cannot buy more of the commodities
Of life with a gold dollar to-day, than
he could have bought with 1t just pri-
or to the sixties. Of course, changes
in the conditions of the mean Of pro-
ductiOn and transportation have tn
be taken into account in solving the
problem. as these would explain to
some extent any increase purchasing
power which the gold dollar may have
to-day, for the cost of production and
transportation Of many commodities
has been materially reduced since 1860
and their prices have beer cores
ponGinCly leseened. If this be true,
it can not be said that gold has in
creased in value in relation to such
commodities.
If silver has not decreased il value,
then it's purchasing power ought also
to be the same to-day as it was during
that period referred to. We have no
means of knowing this to-day in this
country because the silver dollar stands
the equal Of a gold dollar under the
government guarantee; but we do know
that in Mexico and other countries on
Il silver basis, the white metal does
not possess the same purchasing pow
er. The conclusion that it has de-
creased in value is, therefore, inevita-
BILE.
Inquirer may be right when he says
that tree and unlimited coinage will
bring gold dollars down to "tleir
, proper value and make them) cease
to be worth zoo cents as they are to.
day." if he ear by that declaration
that in the actual payment Of debta
they will have no more capacity than
a silver dollar. But he is wrong in
his assumption that the value Of gold
will be destroyed. Gold will simply
cease to circulate as money and will