The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-08-06
MINING.
stocks.
BOSTON, August S, lsss


lue campaign oil education cannot, W,
think, better be helped along than by re
printing articles such as the following
which, however, may be looked upon by
some as almost reproduction OF what
the News has already said, but, as there
appears still TO be so much uncertain
~ as to the meaning OF the 16 TO /
currency ratio, we think that the oftener
such clear and correct definition as the
following, which is taken from letter
OF Messrs. Holmes 4 Co., OF New York, is
published, the better;
The weight and 6neness OF the pre-
sious metal coins OF the United States
were fixed by the mint act OF 1894. Ii
still remains in force, except that the
coinage OF silver dollars was suspended
by the act OF 1873. The mint act fixed
the amount of pure gold in the dollar at
23.22 grains troy, and the amount of
pure silver in a dollar at 317h grains
tgoy. Adding the alloy needed TO make
the coins suitable for circulation, the au-
thoriEed weight oil gold dollar is 25.S
grains, and OF the silver dollar, 412b
grains. On this basis it il assumed that
toe value OF an ounce OF gold is l6 times
that of an ounce OF silver This is what
coinage at the ratio OF l6 TO ! means.
1t IL an assumption that gold is worth
exactly l6 times the value of a cores
ponding weight Of silver.
unfortunately the relative market
value OF silver measured in gold has al
ways huctuated. For many years after
the mint act of 1884 was passed an
nf allVar
liz OF an ounce of gold in the markets
of the world. Between 1884 and 1873
the real ratio was nearer 1jb tol than
IL was to 16 20 |. For this cause il paid
TO buy our silver coin with gold and ex-
port or melt down the former. Ii is for
that reason that prior to the passage of
the so-called Bland silver dollar act the
coinage OF the United States silver dol |
lars was inhnitesimal in amount. The |
fractional silver coinage OF the United |
States Is not at the ratio OF is toll. Be |
cause OF the facts Just stated. Congress
IN 1888 passed an act authorizing the
coinage OF halves, quarters and dimes, on
government account exclusively. in which
the proportion OF alloy should be higher,
20 that there might be no profit in ex.
porting them out OF the country.
rec coinage means that the owners
OF silver or gold bullion can take il 10
the mint in unlimited quantities and have
IL coined Tree OF expense, except for rein
ing charges and OF the alloy used. at the
established ratio. The act OF 1873 was
passed because silver was higher than
gold at the time, and because ANYHOW
the silver dollar had become practically |
obsolete. That at least il the assertion |
oil the sound money advocates, and it il
somewhat peculiar that some Of the
most eminent silverites are recorded in |
the journals OF congress az having voted
Tor the measure. The silver supporters
claim that this was crlme-'the crime of |
1913 they call it-and also urge that il |
was surreptitious scheme to discredit
silver as currency. IL should be remem-
bered that in 1873 there was no metallic
money in circulation, that fractional sil-
yer only replaced the 'shinplaster' notes
in practical use in 1876, and that metal.
lie currency came back with resumption
Ia 1880.
The actual market value OF silver be-
gan to Tall soon after the act of 1874 |
was passed. This was partly the result
OF the substitution OF gold for n silver
standard in Germany, and the melting
down OF the confused silver coins that
were circulated by the former petty
states OF that country. The fact that
be BONANZA mines OF Nevada were dis
.overed, that methods Of treating silver
)re were greatly improved, and that the
'orld's production OF the metalincreased
enormously were, however. the main
fuses Tor the drop. Candor compels |
any one who examines the subject con-
TO say that the act OF 1873 ;
lad nothing TO do with the fall in silver.
At any rate, il il had, the United States
'toned Tor IL by more persistent efforts {
o sha6ilitate silver than all the rest of ,
he world had done in centuries. What
the net result of the present situation
regard to the precious metals used az
money!" I