The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-05-03

and inevitable consequences OF the pre-
MUM which silver now bears have been
to establish. practically. gcad A. the only
legal tender" (.sl
james Guthrie, secretary OF the treas
ury, in his report of December 6. 1888.
speaking OF the gold on hand with which
10 purchase silver bullion 20 coin into sub
ssdiary pieces. says: This enaaled the
mint 20 give gold. which circulated
money. for silver. that was our OF circu-
iation because OF The premium upon it,
ca.
Secretary Guthrie, under date OF April
=. iSSs. reported with reference TO the I'M
LIBERALIZATION Of gold by the ratio Of Is 10
l: Consequently gold remained in The
country. and silver became an article of
export. and rapidly disappeared. and now
the silver dollar coined at the United
States mint under the act of i7ss. Is worth.
At the same mint, q premium Of from TO
5 per cent To remedy this. in part, the
act Of February q. 1855. was passed" CD.
James Pollock. director OF the mint. in
his report OF October 10. 1851. states thar at
that time the silver dollar was worth near.
ly sl-os IN gold. and says: silver dollars
are no longer 10 be had. or are very rare
CD.
Again in his repor, Of October q. 1888.
OF value, but the value OF the gold and sill
yer dollar. under existing laws. is not the
same The gold dollar should be,
by law. adopted as the unit value OF our
money" co.
On April 3. 1872, Mr.. Hooper. Of Massa-
chuset,s. In = speech IN congress in favor
of the bill demonetixinG silver. which be-
came a law in isl3 said: THE silver dol
lar, which by law Is now the legally de-
clared unit OF value. does not bear a cor
rect relative proportion to the gold dollar.
Being worth intrinstcally about sizes in
gold, il cannot circulate ccncurrently with
the gold coins."
On the same day Mr.. Kelley, OF Penn
sylvania. said: by a mistake in our law
it has become impossible to retain an
American silver dollar in this country,
except in collections of curiossties'' Co.
The facts and evidence here given prove
beyond the reach of intelligent contradic-
ton that those are greatly mistaken who
claim that under free coinage this govern
ment had no difficulty in maintaining the
parity OF gold and silver at the mint ratio.
and making our gold and silver dollars OF
equal value.
IL has been shown that for years at
time s. in gold was worth from S. to x5.35
in silver. and that. later, for many con-
unuous years. S. in silver was worth from
$50 to sS.25 in gold.
We maintained the parity of the two met
ais only so long as our mint ratio was
about the same as the market or bullion
ra,to. and that our min, laws could not
prevent the bullion ratio from differing
substantially from our mint ratio.
The market ratio OF gold and silver Is
about 81 10 /. The claim that the United
States alone can. with free coinage, MAIN
tain the parity at the ratio OF Is TO finds
no support either in history or Ia reason.
At that ratio gold would be undervalued
nearly 80 per cent. Prior to 1884 gold went
out Of circulation when /, was underval-
ued only per cent and, later, silver went
out OF circulation for a similar reason.
Surely then. there is no ground for hope
that We could keep gold in circulation
when undervalued nearly 50 per cent
If gold went out OF circulation the silver
dollar would be, practically. our standard
of value. And the silver dollar would
have but about half the purchasing power
OF the gold dollar II displaced; for, as has
been stated, with free coinage the coin is
worth no more than the bullion il con-
tains. and in all civilized countries the sill
yer in our silver dollar Is worth only about
50 cents In gold.
II we are TO give silver free coinage at
the old ratio, let us do II with our eyes
open. and knowing the results that will in
evitably follow. Let US do II knowing that
basis, with the value OF our measure Of
value suddenly diminished nearly one
half.
II We could. by a process extending
through number of years. gradually 60
on to a silver basis, the change would not
be so disastrous. But. II we pass a law
giving silver free coinage at the ratio OF
is 10 l. We will so on to a silver basis just
as soon as the lightning flashes the news
over the country that the law has been
passed-if the change has not been al
ready made in anticipation OF the passage
OF the law. The boat riding below Mag
ara falls may be about as good as IL is
above: but the experience OF going over
the falls Is one that can well be dreaded
l. History OF Bi-Metallism in the United
States" p. II. 2. Do. p. No g. Do, p. IS. 4
Coins Financial School," D. a. s. Con-
gressiona Record, SD congress. special
session. Vol. Is. part 3. appendix. p. el1.
s. Do. April 8. ls72. PIP. 2.sts2 3li. T. Spee ch In
senate by Senator Jones. May Ie. l3. 1880
printed in book form, .. 10. 5. Reports
OF Committees. Nos. 1857 to 2ls "a session
4ith congress. ls76-77." report of monetary
commission, PIP 10. ST. 80. O. Do. pp 10, S.
10. Thirty Years View" vol. l. PIP. AZ
4iS IL History of american Currency"
p los. L. Do. PIP. LOO. he. is7. 10. 'Finan-
cial History of the United States" vol 9.
PIP. 5as. 50S. H. Do. y. 5ii. Is. American
State Papers finance, vol 5 D. aS L.
Do. p. el9. II. Annual Cyclopedia," 1878,
p. lag. IS Coinage Laws OF the United
States. I7s2 TO 1854" p. q. 49, Do. p. Is.
20. Report on the Finances, Is5l-52" D, IL.
q. Do. 1886, p. ees p Finance Re-
port, lSss-4. p g. q. Do. 1861. p. es. "a
Do. 1868, p. l9i.
HERM0N " CD