The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1896-08-15
Nd NEED OF ALARM.
Gold Would Nos Be Yithdraw wn From Cir
cnlstion by free Coinage.


metal coined at less than the CONNER.
cial ratio, out OF circulation.
To prove this proposition. allusion Is
made to the fact that gold want out of
circulation in the United States be.
tween 1892 to 1884, under g ratio of 10
20 /, and thar after the change OF the
coinage ratio in the United States to
l6 TO /, silver went out of circulation
in a similar manner; and it Is claimed
that this occurred by reason of the dis
parity between the coinage and the
commercial ratio-the ratio of Is to !
up TO 1884 being lit is claimed] less
than the commercial ratio, and that Of
l6 to from 1884 on, being greater.
II is submitted that it was the dis.
parity between the coinage ratio of
this ana other countries at these per-
iods, ui:d not the disparity between our
coinage ratio ana the commercial
ratio, which caused the withdrawal of
one or the other from circulation.
During sie. earlier period, the COIN
age ratio in England was about Is 2-lU,
and In France Is $40, while in this
country it was IS. The result, of
course, was that an ounce of our gold
coulU be. taken to France, for instance,
and exchanged by coinage into the
! money of that realm for 153 ounces Of
silver; aud ID ounces of silver could
be brought back TO this country and
exchanged again for an ounce of gold,
thereby making profit Of half an
ounce of silver. And this process was
continually being repeated until our
| gold was all out of the country and re-
| placed by silver.
Again, when our coinage was at
| ratio of l6 10 /, that was greater than
| the French and English coinage ratio,
an ounce OF their gold could now be
brought over here, and coined and eX.
changed for 16 OUNCE of silver, which
could be taken back in its turn and by
recoining 159 ounces of it exchanged
for an ounce of gold in the same way
as before, only the process was re-
versed, and the result of 1t was that
the silver now, instead of the gold,
was drained from this country, and the
gold was correspondingly drained from
France and England TO this country to
replace it.
But it is obvious that the commer-
cial ratio had nothing whatever TO do
with this. 1t was the disparity In coin
age ratio, not In commercial ratio,
which caused the effect. Indeed, the
worlds commercial ratio, during this |
time was uncertain. If the CONNER
cial ratio of the Two metals had been |
81 to in all countries, the effect ofthe |
disparity In the coinage ratio, of l53 to |
in France and 16 to in this country, |
would have been just the So ne.
For instance, ii the commercial ratio
had been SO 10 /, and the United States
was coming silver at ratio of l6 to l,
yet If France and England had con-
tinued their ratio of l53 to /, the silver
of the United States would have been
drained just the same, although the
coinage ratio in this country was much
more favorable to silver than the com.
mercial ratio.
This may be still plainly illustrated
in another way. Suppose that, the
commercial ratio OF gold and silver is
SO 20 /, and suppose further that the
coinage ratio of all countries is ISL TO ],
it is obvious that disparity between the
coinage ratio aud the commercial
ratio, in any country. can rot work
drainage Of either gold or silver from
one country to another, because there
Is no place to which it could go and re.
ceive more favorable conditions.
For instance, it would be useless In
such case for any Que 60 take gold
from the United States TO France or
from the United States 70 Germany,
or from any one country 10 auother,
because If he did go, ne would lind that
exsctly the same conditions existed as
to coinage as in the couutry which he
had left. 1t ia clear, therefore, that it
is disparity 10 the coinage ratio. and
not disparity between the coinage
ratio in any country and the CONNER.
cial ratio, that causes drain of one
metal TO one country aud the other to
another. t.
Now, to make concrete application
of this principle. There are only one
or two countries Ia the world where
the coinage ratio of silver to gold is ,
greater than It is IN this country, only
a very slight faction. In England,
France and all the great commercial
the ratio of coinage Is more
favorable to silver than 1t is in the
United States. The ratio In France, ,
Italy, Switzerland, Greece,
Spain, Russia, Central and South
American States, etc., being ISL 10 l,
and less than 16 to in all countries
except Mexico and Japan, both Of !
which are almost exclusively silver u.s.
ing countries; SO that If we go to the
tree coinage of silver at the ratio of l6
to !, there Is no possible danger Of our
gold money being replaced by the :
coined money Of any other country,
unless some other country should
,hange their ratio OF coinage, since
there is no other country except Mex
leo and Japan where gold dollar
would be equivalent to as much silver
IS 10 the United States.
AS the uncoined silver in the world
Is very small in amount, and there is
4 CO Instant demand for 1t In the silver.
using countries, AMI especially in
China aud Japan, as well as for nee.
sssary subsidiary coin In all countries,
aud sudden drainage of gold from the
United States, is entirely impossible,
as long as the present coinage ratio OF
the different countries is maintained.
SILVER.
shcriR's Statement. II
Sheriff Driver has prepared and will e
submit to the next term OF county @
/