The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1896-09-08
A PLAIN STATEMENT,
What Is Meant by Free and Unlimited Coin
age at the Ratio of Sixteen to One.

What Is Meant by Free and Unlimited Coin
| age at the Ratio of Sixteen to One.
Not at all infrcquently even yet the
query department. Of The Sunday News
is called upon to explain what is meant
| by free and unlimited coinage at the ra-
ito of 16 to 1.
Occasionally there is question which
betrays depth of ignorance most faith
amless. The News has received one
and from q small town in Colorado at
that-which makes us believe that q
statement Of the familiar facts will be
of value in some quarters In effect it
is as follows:
"a. bets d. that 10 to means that the
mints shall coin 10 silver dollars for
every gold dollar they coin. B. bets that
it means there shall be 10 pants of pure
silver to part Of alloy in each silver
dollar. Which wins?'
Neither Of these notions has anything
to do with the meaning Of the express
sion "16 to l." 1t means that the
weight of pure gold in gold dollar
shall be 23.22 grains and tho weight of
pure silver in silver dollar shall be
871 % grains. 1t will be seen that tho
weight of silver in silver dollar ia
within a trifiing fraction of 16 times
the weight of gold in gold dollar, tho
ratio being called for convenience 16
to 1.
The act Of 1837-for free and unlim.
tied coinage at this ratio-provided
that gold and silver bullion brought to
the mint should be received and coined
for the benefit of the depositor. Tho
coinage was free and unlimited, because
any person might bring any quantity Of
gold or silver bullion Of the standard
degree of fneness to the mint and re.
cei-e for 1t gold or silver coins. The
Oily charges permitted were for refin-
ing when the bullion was below stand
ard, for toughening when metals were
contained in it which rendered it unfit
for coinage, for copper used for alloy
when introduced into the alloy for gold
and for separating gold and silver when
those metals exist together in the bull
lion. All Of these charges relate to the
conversion Of bullion into the exact
kind of bullion suitable for coinage.
BY the act Of Feb. 81, 1853, the right
of individuals to have silver coined in.
to half dollars, quarter dollars, dimes
and half dimes was taken away, the
quantity of silver put into such coins
was reduced, their unlimited legal ten
der quality was reduced to limit of
So, and the government went into the
making of them as business, which
was profitable because Of the less guam
tity of silver put into them The silver
dollar was not mentioned in this act
The public retained the full right to
bring bullion to the mint and have it
coined into standard silver dollars, and
the silver dollar retained its quality as
an unlimited legal tender, which il
holds to this day. This act of Feb. 81,
1853, established mintage charge of
one-half Of per cent ON all gold and
silver whether coined or run into ingots
ON account of depositors, in addition to
tho charge for refining or parting the
metals contained in the act of 1887.
Thus the matter stood until the pas
sage of the act Of Feb. 10, 1873, which
established the gold dollar as tho unit
Of value and demonetized silver by
omitting the standard silver dollar from
the list Of coins. Until that day any
person might bring standard silver bull
lion 900 degrees fine to the mint and
Tor each 87l.25 grains Of pure silver
therein obtain silver dollar, paying
only one-half per cent coinage charge.
If he brought pure silver to the mint
instead Of standard bullion, nine-tenths
fine, he would have to pay cents an
ounce for the copper alloy. If 500 |
ounces of pure silver were deposited at |
the mint, it would coin 648 dollars.
There would be 55.65 ounces of copper
required for alloy, which would cost
$1.1l. The one-half per cent for coin |
age would be SO. 23, which would make
tho total charge at the mint 81. 81 ON
GAG dollars.
Through ignorance or malice, the
statement is frequently made that un-
der free coinage the owners of silver |
mines would sell their product to the
government. Pictures are drawn Of the !
government vaults choxed with silver
which it would be unable to force into
This idea has probably
grown out of the acts of 1878 and 1890,
both of which provided not for free
coinage, but for purchase by the United
States of limited amount of silver
each month, the dollars coined there
from or the notes issued in payment
therefor not being legal tender when
otherwise specified in the contract. Un-
der free coinage the government would
not purchase the silver coined into dol
lars. Itwould simply coin the silver for
brought it to the mint aud
band the coin over to the person who
brought tho silver. Denver News
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Let the government take Its heavy hand