San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-06-19
THE l6 TO l PUZZLE.

The following letter OF enquiry
to the editor Of the LIGHT explains
itself:
Dear Sir:-Will you kindly ex.
plain through the columns of your
valuable paper the meaning OF the
term 16 to /, as applied to the coin
age of silver, and tho free coinage
OF the same. / am in ignorance as
to it's true meaning and have asked
several persons for an explanation,
but their explanations differ so
widely that / find a little light on
the subject emansting from your
paper might do its readers much
service at this particular time. How
can a silver dollar whose intrinsic
value is, say IS or 80 cents, be on a
parity with gold? Yours very re-
specially,
(L.) A. SUBSCRIBER. q.
The meaning of the term 16 to l
as used in relation to the coinage
Of silver refers to the ratio estab-
lished between the metals by the
congress Of the United States, that
ratio being established by weight.
This ratio is not that between pure
gold and silver, but between the
coined gold and silver as 1t issues
from the mint. 1t is in effect, a
declaration Of the government
that one ounce weight OF gold is
worth 16 ounces of silver coin.
This figure is not exact. The real
ratio is 1898 to l for full legal
tender silver dollars; and 1895 to l
for limited tender silver (subsidi-
airy coins.) This Nratio between
gold and silver is the highest
established by any government
save those OF Mexico and Japan.
The term 16 to l is used as more
convenient than that of 1898 to l.
Germany, Austro Hug
airy, Australia and Canada have
no full legal tender silver, only
limited tender silver, Subsidiary
The real ratio between
fine gold and fine silver is vari.
ously rated, but the output of
1894 was that of $3.50 to l, rated
in fine metal. For 1895 the ratio
was considerably less, as there was
an increased gold production
for last year, while silver product
ion was designedly restricted.
As to the meaning of the ex-
preston "free coinage" it means
that any one with either gold or
silver can take 1t to the United
States mint and have it coined in
10 money with the United States
upon it, by paying to the
mint the actual cost Of such
coinage. By this act the profit
the difference of the value Of the
silver as bullion and the value Of
that same billion as coin) would
'sll to the man with silver to coin.
coinage simply means
that there is no limit to the
amount Of bullion that might be
thus offered.
As to a silver dollar being on a
with gold, that depends. 1t
on a parity with it at the groc-
ers, where it purchases the same
amount Of provisions as sdollar in
gold. 1t is not on a parity with it
at the United States custom
houses or at the banks whose notes
are to be paid, principal and inter-
est, in gold. Silver In the United
States today is fat money, that it
is money the value Of which de-
ponds upon the say so OF the gov
eminent. 1t is because the credit
of the government is good that
its currency is taken for it's face
value, and not because the paper
is worth what lit calls for. The
silver OF the country goes in the
same way, with this difference,
that there is q commercial value
to the silver which there is not to
the paper, and the difference be-
tween this commercial value and
the purchasing value of the silver
is because that silver has the
United States stamp upon 1t. II