The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-10-25
FREE COINAGE.
Some Doses for Gold Republicans TO
Swallow.
EXTRACTS from the Republican Hand
Books of 1892 and 1S94)

EXTRACTS from the Republican Hand
Books of 1892 and 1884,
If every voter in the United States
were called upon to-day to declare
whether he desired The use of silver as
well as gold in our monetary system,
certainly as many as 90 voters out of
every 100 would answer in the affirma-
tive, and an equal proportion would
favor such legislation as tended direct
ly to bring about the free and unlimi-
ted coinage of both metals, if they
believed the two metals could lie main
tanned at par.
Until the year 1873 the United States
coined both gold aud silver freely in
unlimited quantities; that is, you could
take it to the minis Of the United
States and receive for 1T n fixed, UNI
varying price; but in 1873, by the omis-
sion of the silver dollar from the coin
age law prescribing the silver coins of
the United States TO be thereafter coin
ed, and by the limitation Of the legal
tender of silver to IS, silver was in eff
feet demonetized and it has never
since been restored fully to theposition
it held in the earlier coinage system
of this country. There has been much
irrelevant controversy as to whether
this was done Intentionally and after
full discussion, or accidentally, so far
as the majority of Congress were con-
cerned, and by the artful trick of GER
tain persons interested in bringing
about a gold standard. Such a contro-
yersy serves no useful purpose. At
that time both silver and gold were
at a large premium, specie payments
not having been resumed, and paper
money was the only currency. The
important fact, however, is that silver
was demonetized, and it is of little ser
vice in considering how it was done.
The unlimited coinage of both metals
had prevailed from the foundation of
the government until that date, and yet
on June 30, 1878, there had been total
coinage of S1,041 ,93s .557 Of gold and
only S162 425.070 Of silver Unlimited
silver had not meant the debasement
OF the currency The scarcity of the
metal and its free employment as
money by all nations except England
bad given fl q value IN comparison
with gold that removed ali risk of it's
free use ia our coinage, There
Is a grave danger in the unqualified
adoption of the gold standard. For
as silver has been taken out OF Eur0pe's
coinage the demand Tor gold has enor-
mously grown, and grown in a proper
ton much greater than the supply.
Measuring both metals by the standard
OF commodities, it is substantially true
to say that gold has appreciated more
than silver has depreCiaIed In tae
silyer-using countries silver viii buy
almost as much Of everything eEcap
gold as ii would ten Of g. dozen wears
ago, and this fact sustains the demand
for OVERWHELMINGLY THE advocates Of
the gold standard allege that the value
of gold is intrinsic, and that a certain
quantity of gold bullion having 4 fixed
value should be the standard OF ex-
change. This would be all we'll enough
if anybody were able to insure that the
supply would continually increase in
ratio with the increasing DEM 4 fol ii
caused by growing poulation and com
merce, but rs q matter of fact it is
decreasing in that ratio, and therefore
a man who ten years ago contracted
a debt which might then have been
with 200 bushels of wheat,
to-day must pay many more than 1000
bushels Of wheat to get himsclf free.
just as it is true to say that the silver
dollar which was exchanged on an
with gold Is years ago is now
worth but so cents in gold so it is
true to say that an amount of wheat
that would exchange Is years ago for
a gold dollar is worth much less to-day
European silver could not be dumped
into our mints with profit to the for
eign owners. The silver of Europe is
coined at ratio of Is to l, whereas
American coinage is at a ratio of 16
to L., and as the bulk of European
silver has already been in use many
years it has probably lost 3 per cent
by abrasion. Here is dead loss of 6
per cent. on every dollars worth of
European silver to be dumped on this
country, to which there must be added
freight and insurance. But this is not
ALL The European coins could not
be offered to our mints. The one
tenth alloy which they contain would
have to be extracted loss of 10 per
cent, and the extraction would cost
another 5 per cent, making loss and
cost of not less than % cents before
the dump reached our mints. The
total loss on every dollars worth of
European silver brought over here be-
ing not less than 80 cents to put it in
another shape, foreign spectators in
order to dump European silver on our
mints would be compelled to sell for
68 cents the silver that cost them 100
cents in gold,
The capitalist can increase his
wealth by simply converting it into
gold, putting it in vault and holding
it idle for series of years. At the end
of ten years it will buy more provisions
and more labor than it would when he
stored it. AS the supply of gold con-
tracts everybody must work harder to
get it.
1t is plain that the debtor is entitled
to discharge his obligations for value
precisely similar to that he originally
obtained. He cannot do this if the
money in which his loan is compul-
sorily payable increases between the
date of its making and the date OF its
payment. Measured in gold, all obliga-
tons have thus increased in a very
short period of time. The creditor
class enjoys, therefore, a vast advan-
,laI.A Il ".