The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-07-18
MIR, sEWALL AND THE FATHERS
AGAIN

To the question put tc him by q PRESS
reporter "Why he believed in free sill
yer" Mr.. Sewall replied as follows:
You might as we'll ask me why | be-
lieve in the Bible. / believe in silver
because l am thoroughly convinced that
it is right. I have been firm believer
In it as you know for plumber of years.
For long time ] have studied the mat
ter and my studies have convinced me
that the restoration of silver to its form
er place in our currency is the only rene
dy for our financial Ills"
The restoration of silver to It's former
place in our currency THAT, according
to Mr.. Sewall is the panacea for all our
ills What does he mean by former
place" for 1t has held two 'former
places in cur currency, each radically
different from the other. The law of
1893 fixed the ratio between gold and sill
yer at 10 to one, which was very close to
the commercial ratio at the time it was
adopted. Nevertheless the slight over
valuation of silver caused gold to graau-
ally disappear, and in 1917 1t had wholly
passed from circulation. From that time
until 1894 we were practically using but
one metal. silver, for though gold was
coined in large quantities it never got
into circulation but was exported. In
1884, however, the ratio was changed to
16 to one, and the silver dollar being
slightly undervalued that disappeared
from circulation and the gold dollar made
its appearance again. In 1857 the finish
ing blow was given to the circulation of
silver by q law Of Congress repeating all
acts that declared foreign silver dollars
to be G legal tender in payment of debt.
From that time to the suspension of
specie payments silver was to all intents
and purposes on the same basis as it is
today.
Thus we sea that for forty years our
laws Disseminated in favor OF silver, and
for nearly 80 years before 1860 discrimi-
mated against il. The position of silver
in our currency from 1892 to 1884 was
very different from it's position from 1884
60 1861. Now which position is it that
Mr. Sewall wants the United States to
return to? AS he supports the Chicago
platform it is evidently to the first, very
much intensified. AS an generalization of
the silver dollar by faw cents was sutfi-
oieut to drive gold out of circulation in
few years; an generalization of 30 cents
nearly which the Chicago platform favors
would drive it out Immediately. and in
stead of this country's being on hi.
metallic basis it would be on silver
monometalic basis.
Mr.. Sewall may have studied the sill
yer question very thoroughly, he may
have sat diligently at the feet of the faith
ers, but there is one thing certainly that
he has rot Learned, which the fathers
certainly did know Thoroughly,
namely, that there is q close
relation between the CONNER
cial ratio of gold and silver and the
money ratio. They established the ratio
in 1899 at Is to one because that was very
close to the commercial ratio. They
never dreamed that they could keep both
metals in circulation while one was over
valued 80 per cent, as the Chicago con-
vention proposes, They understood
human nature better than that. When
they wanted tossbring back gold In 1884
they proceeded to undervalus silver,
knowing that the cheaper coin which
would then be gold, would soon crowd
out silver, which it very expeditiously
did. The fathers never taught that it
was possible for the government to keep
gold and silver in circulation when one
was greatly overvalued. If MIR. Sewall
wants to follow the tewhings of the faith
ers, he will advocate the coinage of silver
at the ratio of 80 to (which is about the
commercial ratio,-and not at the purely
arbitrary ratio Of 16 to 1. In following
the Chicago convention he is not follow
ing the fathers. he is flying right in the
face of their ueaohings and practices.
And by the way it is curious fact
that one of the forces which aided in
passing the gold act of 1884 was opposi-
ton to the banks, as it is today one of
the forces that is helping along the
free coinage movement. 1t was argued
that the weight and size Of the silver dol
lar made it inconvenient for use, and
made people prefer the bank-note, and
it was said with much force that the
smaller and lighter gold dollar would to
some extent overcome this preference.