The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-07-24
= FINANCIAL oArEoH1sM.

Q-What is the bullion in a gold dol
lar worth? At is always worth a
dollar in the United States. It's value
is estimated variously in different
countries.
Q-Why is it always worth dollar in
the United States? A-Because it may
at any time be taken to the mint and
coined into a dollar free of charge. In
England its value is maintained at a
fixed rate by the Bank of England be-
coming the purchaser of all gold offer
ed at the established rate.
Q-What is the bullion in a silver dol
lar worth? At varies with the time
and the country. At present. in the
United States, it is worth about SO
cents.
Q-Then the bullion in a white dollar
is not worth as much as the bullion in
a yellow dollar? A-No, because the
bullion in silver dollar cannot be
taken to the mint and coined into a
dollar.
Q-Has this always been so? A-NO;
prior to 1873 both metals were treated
alike
Q-Why was the change made? A
That is one of the mysteries. It was
said at the time to be because silver
dollars were worth more than gold dol
lars and none Of them were being coin
ed. In other words, the silver dollar
being then the unit of value the gold
dollar was at a discount and something
was necessary in order to increase the
demand for gold and thereby increase
it's value as compared with silver in
the interest of gold standard countries.
Q-Was the scheme a success? A
Yes; silver began to decline in value
at once.
Q-What then would be the effect of
restoring free coinage Of silver? At
would increase the demand for silver
and restore it to it's coinage value just
as it was prior to 1873.
Q-Would the owners of gold continue
to take it to the mint? A-Certainly;
because they could get no more for it
anywhere else.
Q-But it is claimed that owners of
gold would buy silver with it. A-That
is absurd because the bullion required
for a silver dollar being worth 100 cents
at the mint and the gold in a gold dol
lar being worth no more, nobody would
part with silver on any other basis;
besides gold must be coined before it
viii buy anything.
Off the metal in a silver dollar is
so much cheaper than the metal in
gold dollar how do the two coins hap
pen to be equal in purchasing power?
A-Prior to the declaration by con
gress that it is the established policy
of the government to maintain the two
metals at a parity and the interpreta-
ton of this by Secretaries Foster and
Carlisle to mean that all forms of cur
rency are finally redeemabIe in gold the
silver maintained it's place along side
of the gold dollar because it was a le-
gal tender for all dues and was itself
redemption money. Since that time it
is kept at par with the popular belief
that there is a gold dollar behind it.
There is not enough gold all told in the
United States to redeem one-half of
the other forms of currency. Instead
of maintaining the parity between the
metals the present policy of the gov
eminent has created a greater diverg-
ence than ever before existed
Q-Is there any reason to believe that
gold would disappear from the coun-
try? A-Absolutely none, since it would
not be worth any more anywhere else
than it is here.
Q-Have any countries free coinage
of silver? Ayes; Mexico and Japan.
GLOW does it affect them? A-They
are two of the most prosperous coun-
tries in the world and have not a tramp
within their borders.
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