The Yale expositor., 1896-08-28
BRYAN ON THE RATIO.
He Sang a Different Song on the
Subject When He was In
Congress.

On the 10th of August, 1893. on the
floor of the House of Representatives,
Mr.. Byran said:
''In fixing the ratio we should select that
one which will secure the greatest ad-
vantage to the public and cause the least
injustice. The present ratio, in my judg-
ment, should be adopted. A change in
the ratio could be made las in 1891 by
reducing the size of the gold dollar, or
nv increasing the size of the silver dol
of both dollars. A larger silver dollar
would help the creditor A smaller gold
dollar would help the debtor. Ii is not
Just to do either, hut If change must
he made, the benefit should be given to
the debtor rather than the creditor. Let
no one accuse me OF defending the Just.
ness Of any change; but l repeat IT, II
we are given choice between change
which will aid the debtor by reducing
the size of his debt and change which
will aid the creditor by increasing the
amount which he is TO receive, either by
increasing the number of his dollars or
their size, the advantage must be given
10 the debtor"
Legislation in favor of debtors or of
creditors, as a class. would be class leg
islation and wholly unjustfable. Ques-
tons between debtors and creditors are
properly settled in the courts; and every
| court will hold that what Is right for the
one Is right for the other also. Mr.. Bry-
an, therefore. did we'll to disclaim ad-
vOcacy of any change Of the existing
ratio. Should change be made at any
time hereafter it cannot and ought not
to affect contracts antedating such
change.
But in advocating the unlimited coin
age Of silver bullion, Mt the present ratio,
for the owner and without cost to him,
Mr.. Bryan does propose a change of the
entire basis upon which business is trans
acted. We are informed by him that
there are three ways by which the ratio
between gold and silver coin can be al
tered: I. The shrinkage in size of the
gold dollar. 2. The enlargement of the
silver dollar. 3. Making a change in the
size and weight of both dollars. Either
of these three methods contemplates a
nearer approximation of the coinage ra-
ito to the commercial ratio and is so far
forth honest. If this approximation of
the two ratios were carried to the point
of ideality. the change suggested by him
would be absolutely honest-Drovided
that it is not retroactive in its application
to outstanding debts.
This is not. however. the change which
would follow the adoption of free coin
age at 10 to 1. There is still another
possible change to which Mr.. Bryan
made no reference in his speech namely,
silver dollar containing 311A grains of
pure silver, worth SO cents in gold, which
nevertheless passes current for 100 cents
i'm gold is an anomaly in finance, unless
explained. The explanation is simple.
Fifty-three cents of the current value OF
this dollar is visible: AZ cents of its value
is invisible. and consists in credit. Free
| and unlimited coinage would destroy this
credit. In advocating free coinage at
16 to 1. therefore. Mr.. Bryan proposes to
make the silver dollar smaller-not to the
eve. but in fact.
This would be a change of ratio IN the
purchasing power of the silver dollar. as
compared with a gold dollar from 1871
to 31:1. .t....
To avoid this result Mr.. Bryan gravcly
proposes that we should do one of two
things: double the weight of the silver
dollar. or else coin gold dollars half their
present weight. Anybody can see that
one of these would have to be done. > in
| order that identity should be established
between the coinage ratio and the COM
mercial ratio. .-,--.-,----
Which of these two expedients does
Mr.. Bryan favor? He tells us that en-.
| larging the silver dollar would help the
creditor. 1t could only help him by
maintaining the present standard of
value. He also tells us that halving the
| gold dollar would help the debtor II so.
| ii would be by change in the present
| standard of value. Finally, he tells us
that he prefers the latter expedient, DO.
| cause the debtor has rights superior to
the rights of the creditor