New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-07-19

AND WHY CONGRESS HAS REJECTED THE
SILVER MEMS DEMANDS
WITH SOME HISTORICAL FACTS WHICH HAVE
PERTINENT BEARING ON THE PRESENT
FINANCIAL AND POLITICAL

| PERTINENT l'ENklN' 'N iiif iH''''''''
FINANCIAL AND POLITICAL
SITUATION.
The following request is one OF scores OF SIM
liar nature that reach The Tribune daily from
all parts of the country
! To the Editor of The Tribune.
Sir: Many people do not undcrsand the silver sI,
question. especially what IL meant by l6 TO !: VIII
/ you please print a fun explanation? NJ /.
| Ncw-fork. July H.
BY free coinage" IL meant the acceptance at
tho mint Of all gold or silver offered for the
purpose. and the melting. assaying and stamp
Ing Of 1t into money without expense to the
owner Of the metal.
Ply ratio Is meant the relative value OF gold
! and silver according to weight.
BY free coinage Of both silver and gold at the
| ratio Of IL to 1" is meant the coinage, without
! exJense to the owner Of the metal. of all gold
and silver brought to tho mint. the theory
that IL ounces Of silver are equivalent in value
to ounce Of gold.
| The Government OF the United States. accord
| Ing to law now coins free all gold bullion
/ brought to the mint. and the advocates of free
silver coinage demand that the same privilege
be extended to the owners OF silver bullion. The
Governments refusal-through Congress-tO do
this rests on the fact that the two metals do not
rear constant ratio Of value toward each
other, and that the ratio of rs to |. at which the
free coinage Of both is demanded. does not at
present represent the real ratio which exists be-
tween the two. Pure gold in the open mar
kets Of the world brings $40 81 an o, nee; pure
silver in the same markets brings only about 10
cents an ounce. which IAN actual ratio OF nearly
80 to THAT IL. 1t actually takes nearly ~
| ounces Of silver to equal in value ! ounce
of gold Experience has shown that any attempt
to coin the two metals under these unequal
conditions would result in monOmetallism on
the basis Of tho cheaper metal. which in this
case is silver Therefore free coinage Of silver
by this country alone would mean violent and
sudden change for the currency fro m the pres
ent gold basis TO silver basis.
FIRST USE OF GOLD AND SILVER.
In order to understand clearly the merits Of
the various arguments presented on both sides
of the question it is necessary to take a brief
historical view Of money and coinage.
Gold and silver have been used for money
since the dawn of civilization, because being
metals much desired by all men for their beauty,
dura blity and usefulness as utensils and orna-
rnents. they came to have recognized value In
the ewes of all and were readily accepted in
change for and measure of the value or
products and property Of all kinds They pos
in bulk in proportion to their value. and were
readily passed from hand to hand At first they
passed by weight, ascertained at each transfer,
and then Governments took upon themselves.
for the convenience and security of the people.
the duty Of stamping the metals into coin there
by certifying to a certain weight and certain
quality in each piece. That is all that the Gov
eminent does in coming money to this day.
But gold and silver have fuctuated greatly In
relative value in the course Of time owing to
variations In the amount Of each produced Old
available for use--n other words, In accordance
with the law of supply and demand Cold has
always been considered the more valuable, In
proportion to weight. and has held first place
In the esteem of men. Al one time the ac-
ceptcd ratio of value was & 10 | that is. people
accepted the metals INTERCHANGEABLE in the pro-
portion Of six parts by weight Of silver to one
Of gold and coins minted at that ratio.
By the time of Henry I. in England. the begin
ming of the twelfth century. the ratio had
changed to Q to |. and. by gradual stages, the
metals drifted further apart until, at the close
of the last century. when our first coinage laws
were enacted the ratio had reached IL TO l.
Meanwhile all civilized nations attempted to
use both metals concurrently as standards or
value changing the coinage ratio from time to
time as experience taught them that the real
ratio of value changed. We say attempted TO
use both standards because. as a matter
of fact history shows that no nation ever
succeeded in keeping both in circulation at
once for any great length of time, for as
soon as the commercial or real ratio de-
parted from the legal coinage ratio one
metal the other in accordance with the law
Of supply and demand, disappeared from circula-
ton as money for use in the arts or for hoard
ing or was exported to some country where
the commercial and legal ratios had been Tade
to conform again.
DISCOVERY OF GRESHAMS LAW.
At first people did not understand these move
ments and attempted to stop them by legisla-
ton by putting severe penalties on the export
Ing Of the coin metal which showed a tendency
TO disappear or the melting OF the coins for use
In other directions. But such legislation always
failed absolutely to produce the desired effect.
and a closer study of the question revealed
where the real trouble lay. Charles V commits
stoned one of his most trusted councillors. Nico
las Oresne. to Investigate the subject Oresmc
reported his conclusions in treatise on money.
in which he laid down the principles that no
sovereign had the power to fix the value or the
purchasing power Of coins; that the legal ratio
Of coins must conform strictly to the relative
market value of the metals that If the fixed
legal ratio Of coins differs from the arket value
of the metals tie coin which Is moderated en-
degraded or debased coin Is allowed to circulate
along with good and full weighted coin, all the
good coin disappears from circulation. and the
sDelGn0Ie,0NA Disease is like railroad