Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-04-16

means at his command to avert IT.
While the sudden expulsion OF Ss20,0co.-
600 IN gold from our stock OF money would
Itself be sufficient 20 create financial
disturbance unparalleled in the history
OF this or any other country. the situation
would be very greatly aggravated by the
fact that the purchasing power OF all the
remainder Of our currency would be sud
denly reduced about one half. we should
have only about two thirds as much cur
rency as we have now. and al the same
time II would be so deprecated In value
that IL would require about twice as much
as we have now 10 transact the business
OF the country. provided there should Do
any business to transact.
THE DOUBLE STANDARD.
The attempt to maintain what Is called
the double standard of value, that is. the
attempt 10 keep the lega!-tender coins
OF the two metals. gold and silver, In uso
as money at the same time, upon ratio
OF value fixed by law. has repeatedly been
made by kings and parliaments In every
civilized country In the world. and II has
failed again and again In every one OF
them: and Il requires no gift OF prophecy
10 foresee that II must continue to fail
so long as self-interest constitutes a con-
trolling factor in the business affairs OF
men. Without tTespassing upon your pa
tience to review the monetary history OF
other countries In which this experiment
has been made and failed, II may De ad-
Vantageous 10 refer briefly TO our own ex-
perience upon this subject. When It was
determined 10 adopt monetary system
for the United States and establish
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 RESPECTIVE parties will live as long
as our political 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 the two metals In the markets OF the
world must first be ascertainec, and tnat
this relative value when ascertained
should be incorporated into the statute
as the basis OF the proposed system OF
coinage. Although they were party lead
ers they were statesmen and patriots.
and when they we're called on TO consider
this great business question affecting all
the private affairs Of their fellow-citizens,
they gave II a thorough ana Impartial IN
yestigatlon upOn its merits without re-
gard to the effect their decision might
have upon their own political fortunes or
upon the political fortunes or their follow
ers. These great men were never dis
turbed for moment by the delusion that
Congress could fix by statute the actual
or relative values OF gold and silver any
more than Il could fix by statute the act
ual or relative values OF pound or leaq
and a pound OF iron. They knew that gold
and silver ike all other exchangeable
things. are commodities. and that their
value will be fixed in the markets OF the
world. They knew that II vas entirely
competent in fact necessary, for Congress
10 declare the ratio uron which the two
metals should be coined at the mint, II
they were 10 be coined at all, but they
knew equally well that II the ratio 20 de-
clared ala not correspond substantially
world had established. the coins OF the
two metals could not be kept in use as
money at the same time; and, consequent
ly. as / have already said, they deter
fnN = IN
ard to adopt II. They reached the con-
cluslon that the true commercial ratio
al that time was - TO ]; that is, that -
ounces Of silver We're equal In value 10
ounce Of gold, ana accordingly the act
0f 1872 which was our first coinage law
authorized the coinage Of the two metals
at that ratio
At the ratio thus established the silver
dollar contained 81 IA grains OF fine sill
yer. and the gold contained "A 81 grains
Of fine gold: but IL was soon discovered
that "A mistake had been made, and tnat
97l IA grains OF fine silver We're not in
fact equal in value 10 q 81 grains OF me
gold, and the consequence was tnat' al
though the difference between the value
Of silver dollar and the value OF gold
dollar was only about Is cents, SILVER
drove gold out Of use and out OF the coun-
try and from that time we had silver
mOnOmetallism until after The passage OF
the acts Of 1894 and 1881 The fact tnat
the silver was put into the form OF a ccih
and made legal tender the same as soiu,
and that both dollars were declared 10 De
worth 100 cents each. did not Increase the
value OF the 81 II grains OF silver 10 any
extent whatever. The people cQulq not DC
deceived by mere words printed IN st--
tute: they soon learned that the metal
contained In the silver dollar vas not
equal in value 10 the metal contained IN
the gold dollar. and they paid SILVER 10
their creditors and boarded the gOiu or
sent IL out Of the country. Even our new
F..NH .fs.1ms ell
culate or remain IN the country, because
Congress by various acts made certain
for. gn coins legal tender In the pay meat
OF debts. and as they were genefally 50
worn Is abrasion as to be OF less weight
than the new dom site coins, they Grove
our dollars and half dollars, and 10
large extent our quarters and dimes a4so'
out OF use as money. our own coins WEE
exported and used at their pullioh E"tus Ei,
In making purchases and paying utols
abroad. and Mr. Jefferson himsef, VINO
had then become President or the lnitel
States Issued an order on the ISL cay OF
May 1875 stopping the coinage o. s'1xJi Holl
dollars At our mints. No more shFer aoi-
lars were coined until 1886, tnirty years
afterwards. and then only l,VOJ or them
were issued from the mints
lS-TO-l RATIO.
Gold having left the country. Congress,
in 1884, during the administration or An
drew Jackson. determined TO restore II
10 the circulation. and. N 0rdeF 10 ac-
cOmplsh that result the legal ratio was
changed from u 10 i 70 about 10 10 -
that IS the law WAS so amended as 10
provide that the gold eagle. OF SO piece,
should contain - grains Oi pure 6olu,
which made the dollar consist OF - 10
grains: but By the act o. l>5i IL Wds
changed 10 - grains. which now con-
stittltes the dollar and unit Of value. THIS
was q slight oVer-ya iuati0n OF gold IN tnt
COINAGE. because 80 grains or me bol-
were nOt in fact wcrtn as much IN the
Of
Although the difference N value was very
small. il proved sufficient 10 change the
whole character OF our metallic currency
and under this ratio gold and silver eN-
changed places silver vent oSt OF ~.
country and gold came in and from thai
time until after the passage or the dcl
IN lS-S we had pr4ctica! S0ld IAonoinetai-
Hsrn. except during the period OF the war,
vyheu W. had no metallic money OF any
KIND When the great civil war began
10 had no silver In circulation except TIE
subsidiary coins authorized oy the ac'
~ 1873. but We had god, ana paper re-
fscuable In gold, and IL was NOT Ions
Sef~re We had another practical iliustIa-
ton Of the natural law that the inferior
n less valuable lsgal-tendsr currency VII
expel the superior or more more Nsiuao.s ,,t.
feeaitSndar currency nom clrculaton
F,TIv I'M 1867 Congress, most unwisely, n
nv opinion. authorized the issue OF iesai-
render uaper 10 circulate az money, dn0
the usual inevitable -esult ioIlowea. Uvlo
ceased 10 be used as money, ana ln'
hsnks and the Treasury having suspend
ii specie payments. the country Wa
hooded with a deprecated currency wortr
a. tines less than % cents on the doiiaf
Later on. fractional paper currency va:
--s,t,ari,sd hv Congress. and the effsc'
~ mis- Was TO drive out OF circulation ever
shs 0cht-weigst subsidiary silver coins
and for many years not single Piece ol
sn"tsiiic money OF any kind was used by
-. ,,eooie except on the Pacific coast
s,here gold continued TO circulate al rs
scss,al intrinsic value, without regard e
fhe sctltlous value which the acts OF Con
fA+N a.. - l-U4f-fpnHar fuU~T