The Press., 1896-10-08
GOLD AND SILVER PART COM
 PANY

gold and silver should work together in our monetary system but the relative value of the two in the markets of the world had to be determined, as an ounce of gold and an ounce of silver were not worth the samn. To work together in the currency system one coin must be as valuable as another in proportion to the metal in them, and no more. To find how these two metals were related to each other in value necessitated a study in the markets of the world. This study was taken up by Jefferson, Hamilton and others, and pursued exhaustively and, finally, it was concluded that one. ounce of gold was equal in value to about fifteen in silver. Hence, ratio was fixed upon between them of fifteen to one. This was necessary, if they were to be stand ards of value and circulate together. It was the commercial value of the metals which decided the value of the coins, It was not the legal value of the coins, set tied in an arbitrary manner by govern ment fiat, which controlled the value of the metals in the markets of the world This is contrary to the course which the silverites would pursue to-day. The con- mercial value of gold and silver is some where as thirty to one; and they would coin silver in unlimited quantities on a basis of valuation of sixteen to one. h. stead of following the fathers of our cur rency they would go the reverse and try by the fiat of the government declaring sixteen, instead of thirty, ounces of silver to be equal to one of gold. Will Ihe
 efsthe government fix the market <
 shall see.
 Returning now to the first coinage of gold and silver, and we see how they worked together. All went we'll for a time; but silver soon showed tendency to pull apart from gold. They were not running equally in the race. Silver be- come less valuable than gold, although the silver dollar was the unit of value, and was used in the monetary system far beyond gold. Gold increased in value in the markets of the world, and by 1910 | there was little of it in use as money. By the year 1917 gold had disappeared alto gether-it had become practically de- monetized, but there had been no fall in the price. It was all on account of its increased value as an article of commerce. 10 in hu1l Rhov in the money article. The old ratio no longer held good. One ounce of gold was worth more than fifteen of silver. Brokers in gold bullion found it to be profitable to gather up all the gold coins for expor- tation. Gold continued to be coined, and in 1920 $1, ,319, ,O30 were struck off at the mint; but it could not be found in circu. lation. "The facilities of the mint were simply used by merchants to certify the weight and fineness of gold for exporta tion"
 Silver was the coin in general circula, tion. It was worth more in coin than 1T bullion. It was cheaper than gold; anC so it remained at home while the golC went abroad. The cheaper metal drove the dearer one out. The coinage act O. 1792, without intending it, put 8 fiat value on silver, or, in other words, overrateC it; but the effect was not to increase its real value as compared with gold Tht effect was to make silver practically thu only standard of value. Bimetallism, o the double-standard, was knocked out gold went abroad, and the commercial value of the metals ruled above the lega value. We have every reason to lool for similar result now should the peopl adopt free and unlimited coinage of silve at the ratio of sixteen to one.
 This law of 1792 provided for small sil yer coins for change; but this change wa displaced by small Spanish coins of simi lar value which poured into the countr, and South America. Our fractional sill yer coins were more valuable than tn Spanish pieces because they were les worn and clipped and would weigh littl more. They were gathered up and melt ed and sold for bullion, Thus the leas valuable money drove out the more .valu able.
 This history should be warning to al men against adopting the notions of tn silverites and populists on the none question. You cannot legislate real valu into anything. You cannot regulate tn commercial price of metals or other thing by law. o. P. CHAMPLIN.
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