Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1896-09-24

I6-'-I

The whole silver question, in ou1
opinion, hinges upon the matter q
the ratio between silver and gold
The silver advocates pin their faith
on 16.to /. By that's meant that
16 ounces Of silver are equal in value
to one ounce of gold, or. that as
many silver dollars shall be coined
from 16 ounces silveras the number OF
gold dollars fir ON one ounce OF gold.
Or in other words. that silver dol
lar is to be 16 times heavier than a
gold dollar. Our gold dollar to-day
contains 1922 grains Of fine gold
and the silver dollar contains BLY,
grains Of fine silver 5or very nearly
.16 times as many. Our present coin
age is at the ratio Of l6 to 1. We
have then
1922 grains fine gold.1 dollar.
371A g fine silver.1 dollar.
- gold dollar.1 silver dollar.
and 1922 gr: golds371A gr. silver.
When the ratio was first established
in 1884, the above propositions
were practically true. With the
change in the relative value between
gold and silver that has come since
then they are not true. The COM
mercial ratio is now II to /, that is
81 ounces OF silver are worth one
ounce Of gold, and the silver dollar,
that is the bullion in it, is worth on
~ So cents in gold. Our calling our
silver coins and our gold coins and
our paper promises to pay, all BY the
same name "dollar" has been the
cause OF many confused and errone-
GUS ideas in regard to money. Had
different terms been employed for the
different kinds ofmoneys many wrong
Impressions would have been avoid
ed. Our trying to hold the gold dol
lar and the silver dollar at an equal
value at a fixed ratio, and, to force
the circulation Of the tWo dtofns u att' ton an
equivalent value and an equal tender
in payment, is but a relic Of the
times when it was believed that the
kings power regulated the value of
coins and his mandate was sufficient
to circulate even clipt and inferior
coins among his subjects. We are
overlooking the fact that silver and
gold are commodities, and that their
value is regulated in the same man
ner as the value of all other
tiles, by letting them find in an open
market what that value is. If a legisla-
tive enactment could regulate therelar
tivevalue Of four metallic money, then
similar legislation would enable us
to regulate the value of all commod-
tiles. We might then enact law
making one bushel Of wheat equal to
one dollar in gold. The leading ma
tions of the world have at one time
or another in their history tried to
harness silver and gold together at a
relatively fixed value, and make OF
them one monetary standard, but
they have utterly failed. In the
course of time the market value of
one metal has gone up or the other
down, and the legal tie between them
broken. As soon as the separation
takes place the coin made from the
metal that has risen disappears from
circulation, according to the Gresham
law, and the less valuable remains.
This is perfectly natural. A. person
with two dollars of different value in
his pocket will pass the cheaper and
retain the dearer. It is only when
the market ratio and the legal ratio
are the same that both metals will
circulate together in the currency OF
any country. England wrested with
the problem OF maintaining q con-
current bimetallic circulation for
hundreds OF years and did not succeed.
The ratio was changed, often many
times during the reign Of one soyer-
eign. In France the ratio was chang
ed 26 times between 1902 and 1878.
The efforts Of the Latin Union to
force concurrent bimetallic circula-
ton proved a failure. Il only brought