The herald., 1896-08-30

from 1850 to 1870 there was only about
five times as much silver as gold pro-
duced in the world, yet the relative
value of the metals during that period
ranged from 1929 to l up to 1850 to 1.
lust as ii had ranged during loo years
preceding. when the production of sill
yer was thirty times as great as gold;
and the same fact holds goCu as far
back as we have any reliable statistics;
for 1928 years prior to 1873. the changes
in the quantity and rels tive production
of the two meatls, although widely va
rying, have had no substantial erect
upon their relative values, but in the "a
years of decentralization of silver since
1873 the relative values of the two met
ais have been entirely revolutionized.
and the ratio of IS and a fraction to
maintained for two centuries has drop
ped to 81 to /. CThese figures as to the
relative production and value of the
two metals are taken from the coinage
laws of the United States. 1892 to 1891.
See u. S. Senate report No. 2S5, pase
442.)
In this same connection. Archbishop
Walsh of Dublin. who has written
very able pamphlet on "Bimetallism
and Monometallism, what they are and
how they bear upon the Irish land
question" says:
During long period of years preced-
ing 1873, almost any kind of disturbance
that could by any possibility have inter-
fered with the relative value of gold and
silver occurred in the monetary world.
Still. throughout it all, the relative value
of the two stood practically unchanged.
Between 1S4S and 1870 the stock of gold
money in the world. according to trust
worthy estimates increased by nearly
80 per cent. whilst the quantity of silver
money in the world increased by only 10
per cent. But still. under the natural
operation of the bimetallic system or
France and other countries. the relative
value of gold aud silver stood practical
ly unchanged.
Mulhan. a distinguished London sta
tistician. shows that the production OF
gold from 1S4S to 1880 amounted to more
than the entire production of $50 years
preceding 1S4S.
Yet. notwithstanding the great over
production of gold as compared with
silver during that period. no change oc-
CURED in the relative values OF the tWo
metals for the reason that there exist
ed under the bimetallic system OF
France and this and other countries an
Unlimited demand for both metals at
a fixed ratio.
| believe that the foregoing facts dis
nose of Mr.. Sherman's fears regarding
a disturbance of the parity between our
dollars, the debasement of our silver
dollar. and the driving OF gold out OF
circulation.
Referring to the extracts above quoted
from Mr. Sherman's speech, he admltS
that although silver bullion declined IN
market value, the coins made from II
have been kept at par with gold coin at
the legal ratio of 16 to l."
but SAYS that under free COIN
age the market value of silver
bullion ''becomes the standard for the
payment of all contracts that "4l21a
grains of standard silver bullion worth
now SO cents. can with free COIN
age be coined into dollar
upon the demand of any holder
Of such bullion; this dollar is deliv-
cred to the owner of this bullion, and is
not supported by the fiat of the govern
ment The government does not under
take to maintain its relative value with
gold
Mr.. SHERMAN'S sOPHIsTRIES
There is such a subtle mixture of soph-
istry with false differences that it re-
quires some little analysis to expose its
errors. Mr.. Sherman in this statement
entirely ignores the effect of the legal
tender function as affecting the coined
value Of silver. If every holder of silver
bullion, which is now worth 80 cents on
the dollar, could tomorrow have his bull
lion coined into silver dollars worth 1G0
cents on the dollar. this coined legal
tender value of the dollar would imne-
diately raise the market value of all
the bullion to 100 cents on the dollar
Free coinage of silver would furnish an
unlimited demand for all the silver bull
lion brought to the mint at 100 cents on
the dollar instead of 53 cents on the dol
lar. so that the bullion value
would Immediately be brought to the
coin legal tender values; such being
the case we can admit Mr. Sherman's
statement that the market value of
the silver bullion becomes the standard
for the payment of all contracts" for
that market value of the bullion will
have been brought up from So cents
to 100 cents on the dollar to correspond
with the legal tender value of the coins
made from that bullion. The error in
his reasoning is in assuming that with
an Unlimited demand for a given COM
modify at a given price, the market value
of such commodity will remain below
such fixed price, and that the legal ten
der effect in the past upon the value of
silver dollars will cease to operate to
give value in the future. The fallacy
of such assumption is too self-evident
to require further comment.
ANOTHER SOPHISM OF MIR. SHEER
MAN.
Mr.. Sherman would reXt have us
infer that the government is bound to
maintain at q parity with gold the sill
yer dollars coined since 1873, but that
no such obligation to maintain parity
will bind the government as to the dol
lars that may be coined under free coin
age; that the former are supported by
the fiat of the government, while the
latter are not; this Inference is utterly
baseless and totally unfounded and a
mere trick of speech. The United States
is under no obligation to maintain any
of its silver dollars upon q parity with
gold; none of them are redeemab BILE in,
or exchangeable for gold, by law or
agreement, and the parity has been
maintained solely because by law they
have the same money function. Stand
ard silver dollars are equally with our
gold coins a legal tender at their face
value in the payment of all debts, and
being so equal in lawn this most i'm
portant function of money-they are
equal to each other.
The function of the silver dollar coined
under free coinage of silver, will be ex-
actly the same as that of the dollar al
ready coined; it will contain the same
amount of siver. will bear the same
stamp, and will be an exact fac smile
of the present dollar, except as to the
date stamped thereon Its legal tender
functions will be the same, and the same
power of the government to maintain
its parity with gold will be behind it that
is now behind the existing silver dollar
namely: 1t shall be legal tender at