Evening star., 1896-08-21
An Interesting Study as
to Who Will Benefit
by Free Coin
age.

A correspondent of The Star sends the
Following as the results Of his study of the
eHects or free coinage, especially directed
10 determining who would benefit by the
enactment of a free coinage law:
Existing statutes provide for the free
coinage of gold bullion by the United
states mints at the rate of 2322 grains of
pure gold to each dollar.
1t is now proposed that the mints shall
be directed to coin silver bullion free into
collars at the rate of 371.23 grains of pure
silver to each dollar This is the 16 to /
panacea for the financial and economic ills
from m which the country is so seriously suf-
fering.
Let us assume that this proposition has
oeen enacted into law, and that the free
and unlimited coinage of silver has been
authorized by the government, what good
Is to come of it? Who is to be benefited.
and how?
1t is possible to give at least a partial
answer to these questions 1t is certain
that the government will reap no advan-
tage-not one dime will be added to the
treasury of the United States. The coinage
OF the silver bullion does not make the
Slter ooiiars minted the property of the
United States. 1t has no claim upon a
slrgle one of them. On the contrary the
treasury will be depleted to the extent of
me expense of the coinage. which is to
hc free that is. at the cost of the gov
ernment- So far from being the better able
to present to each citizen sixteen silver
dollars. which is free silver in the
thought and anticipation of many or to
make even an ampler largess. as a few ex-
pect. making silver free as some municipal
governments make water free. and might
make Tree gas, to give sixteen silver
dollars In exchange for one of gold. which
ra. III ,ns eonviction OF others seems the more
reasonable Interpretation of free silver l6
TO 1. 1t will be less able to aid its suffering
subjects by reason Of "free silver" 1t is
out of pocket by the transaction
Grist Will Idea of 1t.
What does the government do in the
premises? This: 1t directs the officers of
me mlnts to receive and coin all silver
bullion presented, and pays the expense
thereof, and then returns the minted dol
lars to the owner of the bullion, retaining
lhe SWeep1ngs, not very gainful occu-
patton. 1t has coined the money according
10 the Constitution. but the money Is not
the governments, not one dollar of it. nor
can 1t get one dollar of it except by pur-
chase.
John Smith brings his 81 900 grains of
pure silver TO the mint and takes away
Loco bright dollars of the white metal
They belong to John Smith and to no one
Jchn Smith? 1t has transformed his bui-
lion into coin. and thereby male it legal
tender money. By its statutes and its
.nints it has added to what would other
wise have been the value of his bullion
say. 81 per cent. This seems to be in the
nature of fiat value. 1t does not issue
the money, for 1t does not belong to the
government, but it authorizes John Smith
to issue it if he wishes, and it requires of
his friends and neighbors and others that
ihey snail receive it in payment of debts
at its face value. This may have the ap-'
pearance of being a collusive arrangement
between the government and Mr. Smith,
but Ii is not. as the government gains
nothing whatever by the arrangement
Nay. 1t even promises to buy this silver
fIom MIR. Smith and pay him at the rat of
81 .29 per ounce. payment to be made in tax
receipts by the collectors of customs or of
internal revenue Thus, and thus only can
this free silver find its way into the
treasury of the United States, and there
when 50 purchased, it lies side by side with
other dollars, millions Of them, which were
purchased at the rate of 20 to 80 cents per
ounce. In other words.by the enactment Of a
III to l free silver law the government Cb-
ligates itself to pay nearly double what 1t
would otherwise do for all the silver coin
thereafter. received into the treasury. This
evidently is a good thing for John Smith.
but it is not 50 clear that it Is for anybody
else.
The John Smith Glasses.
~ ID EoiIiitil, tHs great Dcue-
fciary? 1t is very easy to say who he is
not 1t IS certain that he is not a farmer
nor day iaborer. nor an artisan, nor an
expert mechanic, nor a professional man,
Tor teacher; that this John Smiths name
Is not found on the payroll of any large
manufacturing establishment in the coun-
try, or OF any raircad corpora ton; that he
Is not an employe of any Of our great cap
talns Of industry, nor a member Of any
labor Hhi6n: or Industrial organizat ton; !;
that he is not a depositor in any of the
Swings banks. nor a tenant, nor small
Ireeholder; in fact. this John Smith. the
beneficiary, is in no sense one OF the
masses; he must therefore be one OF the
"ciasses'-not one of the common peopIe
but of the aristocracy. 1t is as certain as
any thing can be that not one farmer from
Illinois. nor cotton grower from Mississippi
Dor mechanic from New England. nor miner
from Pennsylvania, nor any of their fellow
laborers aud sufferers elsewhere will ever
take one pound or ounce Of silver to the
mint to be coined. The material they have
for coinage-their muscle their brain, their
heart. their life-the mint will not receive
ana allow double price for. Alas! these are
all many of them have.
Who then Is John Smith? Who can he he
except a holder of silver bulIion-a "silyer
baron, or silver mine owner OF silver
broker! VINO else can bring silver bullion
10 the mint in any quantity? 1t Is not
probable that our housewives will part with
their solid silver forks and spoons and tea
sets, 10 which above the bullion value has
been added the cost of artistic manufac-
turing. That, indeed. would be the saddest
thing OF all. John Smith does not neces-
sarily live in Colorado OF Utah or Montana.
He has his home also in Chicago. Cleye-
land. Phiiadelphia, New York, London.
Paris and Berlin. He is now a. national
bank. and there a great railroad corpora-
tion: here a manipulation of pork, there Of
OIL. and elsewhere of stock He owns gold
mines in Cripple Creek. as we'll as silver
mines in Virginia City. In fact. If one were
70 scratch him deep enough, ten to one
no sixteen to one-he would be found to he
a ysritable gold bug" that is. a great
capitalist or millionaire. who, In the popu-
list. If not the popular, estimate, is a
goldite.
Cnpitalistic Movement.
Johr Smith. in the long run, Is asgregated
capital, which, in the main, controls all
great enterprises and which will buy I'D all
silver bullion and silver mines, and all sill
Yer miners also, SO soon as 1t becomes
evident that the operation will yield large
dividends. This is John Smith, the great
beneficiary of the sixteen to one move
ment in behalf of the oppressed laborinr
classes 1t Is surely good thing for him
at least. Whether others will be benef1ted
Will in large measure depend upon how
10 uses his not ill-gotten. but easily GOT