The times. [volume] (Richmond, Va.) 1890-1903, 1896-04-16

children for losses sustained under poL-
ctes Issued by life and other INSURANCE
companies, for deposits In savings banks,
trust companies. building associations ana
other Institutions, for debts due 10 wid-
ows and orphans by guardians. executors
and administrators OF decedcnts estates
and other trustees, for saiarics OF an
civil. military and naval officials, anG the
compensation OF private soldiers ana se"
men. and. in short, for every KIND OF
obligation recognized by the laws or the
land, except only In cases where the pru-
dent capitalist has taken the precaution
In advance TO contract for payment IN
gold or its equivalent. To say nothing OF
the gross partially ana manifest mus
tee Of such a policy, It's Immaculate e.
feet would be TO contract our currency 10
the extent OF about 500. 10000 by stopping
the use Of gold as money ana pu"'ne a
premium upon the coins OF Una, pc'aI
equal. or about equal, TO the uinetenVe
between the intrinsic value oil 'he soiu
dollar and the intrinsic Waite OF the
silver dollar. Gold coins would at once
become a commodity and would ce
bought and sold by spectators IN the
market lust as they were during the war
when we had a deprecated paper cur
rency The value Of the silver dollar
would fiuctuate from day 10 day, NOV
ing no and down with the rise ana fali
Of the commercial price OF the bullion
contained in st. as the Mexican doilaI
does now. and the premium on the gold
dollar would OF course fuctuate TO the
same extent, thus aftording an oppor-
tunfty TO bullion brokers and spectators
10 buy and sell IL at a pront. Ii woui1
cease TO be used as money. because no
man would pay his dets in gold dollars
or in paper redeemable In gold dollars,
worth 100 cents. when the law permitted
him 10 pay II in silver dollars, worm
only 81 or 50 cents each. The sudden with
drawal OF 500 600 900 from the volume OF
currency in the country would undoubt-
edlv produce financial and Industrial
disturbance far more disastrous to the
interests OF labor than has ever been eN-
perienced in our history. and no man VINO
has a particle Of sympathy Tor worklhs-
mon and women and their dependent
families can contemplate the possiplilty
of sach a calamity without feeling thdt
Il is his duty. whether he occupies
public or private station, TO employ
every honorable means at his conihdhu
10 avert H. -. -, ooo
While the sudden expulsion OF $3.50. GOO
IN cold from our stock of money would
Itself be sufficient 10 create a hnancial
disturbance unparalleled I'm the history
OF this or any other country, the sltua-
ton would be very greatly aggravated
by the fact that the purchasing power Oh
ali the remainder Of our currency wouid
be suddenly reduced about one-half' we
should have only about two-thlTds as
much currency as we have now. ana AT
the same time IL would be so deprecated
I'm value that IL would require about
twice as much as we have now 10 trans
act the business Of the country, provided
there should be any business TO trans
act
DOUBLE STANDARD OF VALUE.
The attempt TO maintain what is call
ed the double standard OF value, that
is the attempt to keep the legal tehuer
coins Of the two metals gold ana silver
in use as money at the same time upon
a ratio of value fixed by law. has re-
peatedly been made by kings and parma
nents in every civilized country in the
world. and it has failed again and again
In every one Of them. and II requires no
gift of prophecy TO foresee that it must
continue to fail so long as self interest
constitutes a controlling factor In the
business affairs OF men. Without tres
passing upon your patience 10 review the
monetary history Of other countries In
which this experiment has been mace
and failed, II may be advantageous 10
refer briefly to our own experience upon
adopt a monetary system for the United
States and establish a mint, Alexander
Hamilton and Thomas jefferson. two
men who differed widely upon almost
every public question. and whose names
as founders and leaders of their respec-
tive parties will live as long as our poll
Xicaf literature Is read, agreed that IN
determining what should be the coinage
or legal ratio between gold and silver
the true relative commercial value OF Inc
two metals in the markets Of the world
must first be ascertained. and that TINS
relative value when ascertained should
be incorporated into the statute as the
basis OF the proposed system OF coinage
Although they were party leaders, they
were statesmen and patriots, ana wheh
they were called on 10 consider this great
business question affecting all the pri-
vate affairs Of their fellow-citizens, they
gave IL a thorough and impartial inves-
tigation upon its merits, without regard
to the effect their decision might have
upon their own political fortunes or upon
the political fortunes of their followers.
These great men were never disturbed for
moment by the delusion that Congress
could fix by statute the actual or rela-
tive values of gold and silver any more
than II could fix by statute the actual or
relative values of a pound of lead ana d
pound OF iron They knew that gold and
silver. like all other exchangeable things
are commodities. and that their value
will be fixed in the markets of the world
They knew that IL was entirely compe-
tent. IN fact necessary, for Congress "a
declare the ratio upon which the TIVE
metals should be coined at the mint If
they were to be coined at all. but they
knew equally well that II the ratio so de-
clared did not correspond substantially
with the ratio which the commercial
world had established. the coins Of the
two metals could not be kept in use as
money at the same time: and. consequent
~. as ] have already said. they deter
mined 10 ascertain the commercial ratio
and to adopt il. They reached the con
olusion that the true commercial ratio al
that time was Is 10 1: that is. that i
ounces of silver were equal in value TO
ounce of gold. and accordingly the ac
OF 1892. which was our first coinage law
authorized the coinage Of the two metals
at that ratio.
A MISTAKE MADE.
At the ratio thus established the silve
dollar contained 81 IA grains of fine sill
yer and the gold contained "a ga grain
of fine gold: but it was soon discovered
that a mistake had been made and tina
37f IA grains OF fine silver were not IN fac
equal in value TO a 81 grains Of fine gold
and the consequence was that, althoug
the difference between the value Of sill
Yer dollar and the value of a gold dolla
was only about one cent and one-eightl
OF a cent. silver drove gold out Of US
and out of the country. and from tina