The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1896-09-30
THE EFFECTS OF FREE COINAGE.
The Government Would be Unable to
Maintain Silver at Par.

inquiries upon the same subject are ad-
dressed TO me daily from differ ent parts
of the country, which it is simpracticable
TO answer in detail, / will take advan-
tage of your favor to ans them ali
at once.
COINED on PUBLIC ACCOUNT.
All the standard silver dollars issued
from the mints since the passage of the
act of 1873, now amounting TO more
than S433, ,OO0, 600, have been coined on
public account from bullion purchased
by the government, and are legal tend
er in payment of all debts, public and
private, without regard to the amount,
except when otherwise expressly stipu-
lated in the contract between the par
ties. They belong to the Government
when coined, and they are paid out by
the Government at parity with gold
for property and services of all kinds,
and received from the people at par
ity with gold in the payment of all
public dues and demands.
The Government has made no dis
elimination whatever between the
coins of the two metals, gold having
been paid on its coin obligations whe n
gold was demanded, and silver ha wing
been paid when silver was demanded.
COINAGE LIMITED.
Under this policy the coinage has
been 50 limited by law, and the policy
of the Treasury Department, that the
amount coined has not become 50 great
as TO drive the more valuable coin t,
gold, out of use, and thus destroy the
basis of our monetary SYSTEM and so
long as the two metals are of unequal
commercial value, at the ratio estab-
lished by law, this Limitation upon the
coinage is, in my opinion, absolutely
essential to the maintenance of their
parity in efIecting exchanges II con-
stitutes the principal safeguard for the
pro;estion of our currency against the
| depreciation which the experience Of
wise result from the attempt to use
legal tender coins of the same denom-
ination, but of unequal value. If the
Limitation were removed, confidence
in the ability of the government to
preserve equality in the exchangeable
value of the coins would be destroyed,
and the parity would be lost long be-
fore the amount of silver coinage had
become really excessive. With free
and unlimited coinage of silver on 40
count of private individuals and cor
poTations, the government would be
under no moral obligation 20 maintain
the parity, and, moreover, 1t would be
unable TO do so, because the volume of
overvalued silver forced into the circu =
latiOn by q legal tender provision
would soon expel gold from the
country, or put such premium upon
it that it would be impossible to pro-
cure and hold in the Treasury a sutli-
cient amount To provide for the re-
demption of silver on presentation In
order TO maintain the parity under
such conditions the government would
be compelled from the beginning To
exchange gold for silver dollars, and
their paper representatives, whenever
demanded, just as it now exchanges
gold for its own notes when demanded:
and as the coinage OF silver dol.aF-
would be unlimited, and therefore con-
stantly increasing, 3 anint would soon
be reached where il would be impOssi-
he to continue the process of redemp-
| ton.
| IMPLIED OBLIGATION OF THE GOVERN
MENT.
The implied obligation Of the Nov-
ernment 10 preserve the value OF the
money which it coins rom its own bull
lion and for its citizens TO receive in
exchange for their property and SER
vices, has been supplemented by two
statutory declarations, which suhstan-
TALLY pledge the public faith to the
maintenanee OF that policy. The act
of July IL. 1890, after providing that
the Secretary of the Treasury should,
under such regulations As he might
prescribe, redeem the Treasury notes
issued in the purchase of silver bullion,
in gold or silver eaiA, at his discretion,
declares that ii il "the established
policY OF the United States to main
tain the two metals on parity with
each other upon the present legal ratio,
or such ratio Is may be provided by
law" and the scl of November /, 1893,
again declares it to be ''the policy Of
the United States TO continue the use
of both gold and silver as standard
money, and to coin both gold and sill
yer into money of equal intrinsic and
exchangeable value, such equality to
be secured through international agree
ment, or by such safeguards of iegisla-
ton as will insure the maintenance of
the party of value of the coins Of the
two metals, end the equal power Of
every dollar at all times in the marke;
aud in the payment of debts"
With knowledge of those assurances
the people have received these coins
and have relied confidently upon the
good faith of their Government; and
the confidence thus inspired has been
a most potent factor in the maintenance
of the parity. The public has been
satisfied that, so long as our present
monetary system is preserved, the
Government will do whatever its mora
obligations and expressed declaration,
require it To do, and very la.ssiy a. q
consequence Of this confidence in the
goJd faith on the executive authorities
the silver coins have not deprecated
in value.
PARITY WILL BE MAINTAINED.
1t is not doubted that whatever ear
be lawfully done to maintain equality