The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1896-07-30

The idea of a double standard was not
given up. Simply another attempt was
made to make silver and gold circulate
together as money. 1t was claimed that
a change in the legal ratio was all that
was needed. Accordingly the market
ratio Of the two metals was made the
legal ratio. The ratio 1:15 was dropped
AMI the ratio 1:16 substituted.
For the next eight years all went
well. Silver and gold were taken in
about equal quantities to the mInts, and
during this time we were on bimetalllc
basis in fact as well as in name. But
causes were at work Which were soon to
demonstrate again that legislative en-
actment cannot keep the legal and
market ratios together. About 1910 the
Siberian mines were increasing the sup
ply Of gold TO such an extent that gold
fell IN value and by 1912 1t took only
fifteen ounces of silver to buy one ounce
of gol1. Now conditions were reversed.
Now it was preferable to coin gold be-
cause gold was relatively cheaper than
silver. OJust as silver had previously
driven out gold, so now gold began to
drive out silver. This movement was
helped along later by the great pro-
ductIOn of gold In California and Aus
tralia. For the year 1851 the total coin
age of silver amounted to little less
than 100000, while that of gold was
over s62,000,O0O. The pendulum had
swung to the other side and we were on
gold basis. Again the transition from
the one metal to the other had been very
gradual so that business interests did not
suffer materially.
By 1858 even the subsidiary silver had
been melted down and exchanged for
gold SO that change" had disappeared
altogether. This undesirable state of
affairs called for corrective, Money
for small transactions was absolutely
needed. Gold could not be used for
that purpose, silver had to be brought
back.
Hitherto there was as much silver in
two halves, or four quarters or ten dimes
as IN a dollar, and this is what made 1t
profitable to reduce the change to
bullion. To prevent this less silver was
to be put INTO the subsidiary coins. The
coinage act Of 1858 authorized the
changes In the weight of subsidiary silver
and change" was coined again.
But the most significant thing about
the act Of 1853 was what it did not try to
do No attempt was made to change the
ratio again in order to bring the silver
| dollar into circulation. Everybody was
satisfied that blmetailism IN practice was
unattanable and hence the general ac-
| ceptance of the gold standard at this
time, There was no agitation for silver
1t was not claimed that silver was I'M
fairly treated The act of 1853 was not
called the Crime of 1852. Silver was
not the poor mans money when dollar
IN silver WAS worth lob cents IN gold
We have noticed that in the early years
OF the history of the United States silver,
under bimetallic system, became the
sole money metal; that later gold drove
out silver, thus putting us on a gold
basis that these changes came about in
most natural way when the legal and
market ratios varied even though the
difference was slight. Suppose now free
coinage of silver at the ratio of ] :1G as is
| advocated by the platform of the demo-
cratic and populist parties were intro
duced. Would that restore blmetall1sm?
is 1t possible that anyone can believe in
| the face of history that when 1T takes
| thirty-Cne ounces of silver to buy one
ounce of gold, the adoption of legal
ratio of 10 will bring the two metals to
| aparlty? The day that the people of this
| country declare for free coinage of silver
will witness the disappearance of gold and
the shrlnkage of every silver dollar or it's
equivalent to one half its value.
If our monetary history has taught us
anything it has taught us that silver and
gold can never be made to circulate as
money side by side for any length of
time. The adoption of the ratio of 1:16
Will not bring back bimetaliism. The
question to tie decided at the next cleo
ton is whether we shall continue on the
gold basis or whether we shall drop sud-
denly to silver basis aid thus bring
irreparable harm to the business inter.
ests of the country.