Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1896-06-02
The silver Issue.

discussed: viz. that the single gold
standard is best: that sixteen to one
will result in a deprecated dollar
and that the commercial values OF
the two metals donot afford q sufh-
! ~ciently stable ratio. Certain other
propositions will at this juncture
Interest those sufficiently informed
TO comprehend them. 1t will be diff
ficult to get q hearing for them, be-
cause unframed minds shrink from
Imaginary obstacles as children In
the dark run from spooks. The diff
iculty to obtain a hearing is the
greater, because gold m-onamaniacs
are deaf to any suggestion for silver:
fiat money cranks ignore the funda-
mentaIs OF sound money, while silver
mine owners suppose their industry
will be lost unless we coin at a false
ratio. We say:
First. The commercial ratio OF
the two metals is the same as their
ratio of production. Waving in
quiry, whether this be II as to
other commodities, it is true as to
the two money metals.
Second. If the ratio of coinage is
fixed by dividing the production of
silver by the production of gold,
then, presently, the supply of silver
will become limited to such an amount
as can be produced at the same cost
as the gold. For example, If the
annual gold output be $50 1000
pounds, or S37, 000, 600, and if the
silver production, no matter how
large, represents only that many dol
lars, then, only 10 much silver will
be mined as caE be mined at a cost
of S37, 000. 900.
Third. If the above propositions
are sound, then, presently, the out
put of silver will settle down TO a
fixed ratio to the output of gold.
The ratio of coinage NAV then be the
ratio of production, and the ratio of
production will be the commercial
ratio.
Fourth. If the ratio of coinage is
the commercial ratio, then the pro-
portions of the two metals, coming
to the mint, will be of the same
coinage value.
Fifth. If both metals are coinable
at their commercial ratio, then values
of all property will be measured by
the supply of both metals and values
will be double what they would be
if measured by the supply of gold
only.
1t is a confusion of ideas to sup
pose that bimetallism consists only
in the circulation of both gold and
silver coins. Bimatallism consists in
lflo Yf1lt-fN anfn both -oat,1o W. hol
bimetallism before the war although
no silver was coming to the mint.
1t would have come if gold had large
Iy appreciated. If bullion is COMA
Bile it measures values as much as if
coined.
We have not been on a gold basis.
Congress demonetized silver, but I'M
mediately coined it. The threat to en-
force the act of 1873 has thrown the
Country into commissions. The
threat of sixteen to one, has parali-
Zed business.
Sixth. If the rate of coinage be
fixed by dividing the amount of silver
received at the mint each 365 days
by the amount of gold received dur
ing the same period, then, presently.
the ratio of production will vary so
slightly, one year with another, that
the same ratio of coinage may con-
tinue for a long period viz.the same
size dollar may be used for a long
period fluctuations in ratio being
adjusted by fractional currency.
If these propositions are sound,
then, is it not within the reach of
/ orao4iyya fn1ont IN INFANT a urnfnf1 RI
coin by an automatic ratio? For
illustration let the government issue
for silver its receipts, thus.
This may be exchanged 365 days
after date, for 81 grains of silver
coined at ratio to be fixed by divid-
ing the amount of silver by the
amount of gold received at the mint
during the next 365 days.
The party bringing in silver would
wait 365 days. The precise point
involving creative talent is to invent
n substitute, to be used instead of n
silver dollar, until the ratio of pro-
duction has become stable: viz. TO
invent a temporary substitute, to be
issued at the expiration of the $50
days, which will be the equivalent of
of the bullion in a gold dollar, and
which will pass as "money current
with merchants until the ratio of
of production has become very
slight.
1t has been suggested that if, on
the day silver is delivered, the COM
mercial value of 81 grains is sixty
cents, then issue q silver dollar on
payment to the government of forty
cents in gold.
The novelty of the task should not
intimidate us. Such a substitute
would be as convenient as the bimet-
alism we had before the war when no
silver was being offeredsto be coined
into dollars. 1t would enable us to
eliminate many of the absurdities of
the present situation, such for ex-
ample, as buying gold with bonds.
r j. NJ. MASON,
Charles Town, W. Va,
May %, 1896.
q