The San Francisco call., 1896-09-10

cations in the best form of money recognized
by the commercial world.
The free coinage OF silver ct the ratio of 16
TO l is policy which no nation has ever be-
fore proposed, and it is to-day not permitted
In any mint in the world, not even in Mexico.
1t is purposed to make the coinage unlimited
at an absolutely fictitious ratio fixed with no
relation to intrinsic value or pledge to ultl-
mate redemption. With silver at its presen [
price OF less than 20 cents per ounce in the
market such q policy means an immediate
profit to the seller of silver for which there is
no return, now or hereafter, to the people of
our Government. 1t means that for each dol
lars worth of silver buIlion delivered at the
mint practically 50 of stamped coin viii be
given in exchange. For 500 worth of bullion
nearly 200 silver dollars will be delivered.
Let it also be remembered that the conse-
quences of such an act would probably be
cumulative in their effects. The crop OF sill
yer, unlike that OF hay or wheat or corn
which, being of yearly production, can lie
regulated by the law of supply an0 demand
is fixed once for all. The silver, which has not
yet been gathered, is all in the ground.
Drought or other accident of the element IS cam
not augment or diminish it. 1t is not more
than probable that with the enormous pre-
MUM offered Tor its mining the cupidity of
man would make an over-supply continuous,
with the necessary result of a steady depre cia-
tlon as long as the silver dollar could be kept
finance, which fixed as those of any
other science, the inevitable result would
finally be currency all and absolutely fiat.
There is no difference in principle between q
dollar half fat and one all fat The latter, as
the cheapest, under the logic of "cheap
money" would surely drive the other out.
Any attempt on the part OF the Government
to create by is fiat money fictitious value
would dishonor US in the eyes of other people
and would bring infinite reproach upon the
National charecrer. The business and 6nan-
cial consequences of such immoral act
would be world wide, because our commercial
relations are world wide. 1t is a known fact
that more than 80 per cent of the commerce of
the world is settled in gold or gold basis.
such free-coinage legislation, if ever consum-
mated, would discriminate against every pro-
ducer OF wheat, cotton, corn or rye--who
should, In JUS tice, be equally entitled with the
sflver-owner to sell his products to the United
States treasury at a profit fixed by the Govern
ment-and against all producers of iron, STEEL
zinc or copper, who might properly claim to
have their metals made into current coin. 1t
would as well be fraud upon all persons
forced to accept a currency that stimulated and
at the same time degraded.
In every aspect the proposed policy is par
tial and one sided, because IL is only when q
profit can be made by a mine owner or dealer
that he takes his silver TO the mint for coin
age. The Government is always the losing
end. Stamp such fictitious value upon silver
ore, and dishonest and unjust discrimina-
tion Will be made against every other form of
industry. When silver bullion worth little
more than 80 cents is made into a legal-tender
dollar, driving out one having a purchasing
and debt-paying power of 100 cents, it viii be
Clearly done at the expense and injury OF
every class OF the community.
Those who contend for the free and unIim-
ited coinage of silver may believe in all hon.
esty that, WhlIe the present ratio of silver to
gold is as 30 to l mot 16 10 II. silver will
rise above the existing market value. If il
does so rise the effect will be to make the loss
to all the, people SO much less, but such an
opinion is but a hazardous conjecture at best
and is not justified by experience
Within the last twenty years this Govern
ment has bought about $50, ZOO, 900 ounces of
silver, from which it has coined 8pproximately
100000 900 of silver dollars and issued 13O-
100000 Of dollars in silver certifcates and
the price of the metal has steadily declined
from 81 10 per ounce to 6S cents per ounce.
What will be the decline when the supply is
augmented by the offerings of all the world?
The loss upon these silver purchases 10 the
people of this country has now been nearly
$150,OO0,00O.
The dollar of our fathers. about which SO
much is said, was an honest dollar silver
maintaining full parity of intrinsic value
with gold. The fathers would have spurned
and ridiculed proposition to make silver
dollar worth only So cents stand on equal
value with gold one worth 100 cents
The experience of all nations goes TO prove
that any depreciation, however slight, of an
other standard from the parity with gold has
driven the more valuable one out OF circula-
ton, and such experience in matter of this
kind is worth much more than mere interest
ed speculative opinion. The fact that few