Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1896-08-20
SIXTEEN TO ONE
EfmetaIlism APPLY Illustrated No
~FIOOd' of silver Possible.


sFlOOd' of Silver Possible.
The manner in which bimetal-
lism secures a unit of money of less
varying value than where that unit is
confined to one metal is illustrated as
follows by an English economist: He
supposes two reservoirs of water, each
subject to independent variations of
supply and of exhaustion by use.
In the absence of any connecting
pipe the level of the water in each
reservoir will be subject only to its
own fluctuations of supply and use.
But if we insert a large connecting
pipe, the water in both will assume a
certain mean level and the effects of
an excessive supply or exhaustion in
either will be distributed over the
whole area of both reservoirs. The
mass of the metals of gold and silver,
be says, circulating in western Europe
in late years is exactly represented by
the water in these reservoirs, and the
connecting pipe is the law OF France,
establishing bimetallism in France in
1903. This enabled one metal to take
the place of the other as an unlimited
legal tender. This can be well under
stood by a study of the table of coin
age in France from 1903 to 1876.
This automatic feature is illustrated
right at my door by the engineers who
constructed the canal from Cleveland
TO the Ohio river over this summit two
generations ago. That there might be
a constant supply of water on this
summit, to float vessels both north
and south, a reservoir was made by
joining together a number of small
lakes, no one of which would have af-
forded a sufficiently uniform and con-
slant amount, but the combined lakes
have furnished a constant supply all
these years, with bat slight surface va
ration.
Unlimited free coinage of both sill
yer and gold, as actual or final money,
established by law, enables them to
act thus freely and to regulate one an
other. The relation which they sus-
tain to each other is called the :'ratio"
that is the amount of one which shall
hc equal in legal relative value to GER
tain portion of the other.
The adjustment of our national coin
age to a ratio must be the act of the
people of the United States themselves.
1t cannot be submitted to the discus
sion and judgment of any council of
foreigners. 1t involves questions of
domestic concern. It involves ques-
tions of equity and morals between our
own citizens. If patriotic pride and the
spirit of independence are not entirely
dead in this land, any proposition to
turn over this matter to be adjusted by
others must be promptly resented.
That the ratio to be adopted by US
should be sixteen to one" seems clear,
from a number of considerations:
/. Sixteen to one" or, strictly speak
ing, 15.9SS4 to one, is our ratio and has
been since 1884. The ratio is obtained
in this way: The silver dollar contains
371.25 grains of pure silver, and the
gold dollar 1922 grains of pure gold.
If you divide 371.25 by 1922 you will
get the ratio of weight between gold
dollar and a silver dollar; this is
15.9SS4. To preserve this is conserva-
tive; it asks only that we keep to the old
paths.
2. This is the ratio existing in our
current coins. Should we now change
this ratio, it would require us to make
our silver dollars larger or our gold
coins smaller. It would necessitate the
entire recoining of one metal or both.
3. This ratio secures about equal
value to the worlds gold and silver, say,
$4,000, 100000 of each. They are about
equal in their influence, thus, on each
other; the two reservoirs are of the
same size, and therefore mutually in
fluence each other. 1t does not make Il
large and a small reservoir, in which the
large would dominate and the small
have little influence. This secures a
steady and uniform standard. The ra-
ito of the two metals as they exist III
the world to-day, available for coinage,
as nearly as can be computed, is fifteen
and two-thirds to one.
4. The ratio of the coined silver in Eu-
rope is fifteen and half to one of gold.
The European ratio is slightly more
favorable to silver than ours. We pro-
duce great quantities of silver, and this
makes the European price for coinage
slightly higher than our own coinage
price, which will pay transportation and
give our silver the world for it's market.
5. There can be no flood of silver to us
from Europe except at a loss of about
three per cent, and they have no real
surplus. The coinage of silver in Eu-
rope, transferred and coined in this
country, would be worth three per cent.
less than it's present coin value. This
is sufficient to afford complete protec-
ton from the humiliation or flood OF
silver" of which we have heard.
6. The metals greatly vary in their
annual product more or less, yet at
these ratios they have had almost in
variable relations to each other; not
over three per cent. variation IN 300
years, until characterization in 1873.
This ratio has the sanction of long and
successful trial.
Z. French experience in coming shows
that they can be held very nearly at
parity at fifteen and one-half to one.
From 1903 to 1873 the variation was
very slight. This steadiness could have
been continued had the United States
lot deserted the French in their effort
to maintain this in opposition to the
English gold monometallists.
s. The supply of money for the world
is steadier from the worlds product
Of these metals at this ratio than if
either were alone. The amount of gold
and silver combined is so great that
it is not easily affected by any slight
accretion. There are interesting an
Eouncements of immense yields of gold
and silver from the mines from time
to time, yet these added to the great