Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1896-07-14
reigned supreme the represen-
tative Of value as the media of
exchange. ALBERT Lea Stand
ard. s. .-'.,
TRUE BI-METALLISM OUR
: SALVATION.

One Of the exclusive powers of
congress by express constitution
nalprovision is ''tocoin moneyand
regulate the value thereof and
of foreign coins.'''
Another power is to provide
processes for collection of public
taxes and private debts, and as
necessary corrollary to define a
legal tender in which such obi
cations may be satisfied.
A still further imperative duty
of congress is TO provide an ade-
quate medium of exchange for
the transaction of business-to
properly perform the money
function.
How shall this be done?
When this government was
founded gold and silver was, and
had been for ages, the money Of
the world. Hence the constitu-
tional provision for their coinage
at the then going ratio into legal
tender coins. The question Of
ratio at which the metals shall be
coined is a matter of details to be
adjusted as circumstances may
require. The ratio adopted in
1892, was changed in 1884 by
changing the mum Der of grain
necessary for a dollar Of gold.
Bi-metallism properly speaking,
means the equal mint privilege
of gold and silver at some ratio,
and not the concurrent circula-
ton" Of both metallic coins, as
some contend. Under the true
bi-metallic money system, both
gold and silver are standard
money, have equal access to the
minis, and are equally full legal
tender. Either of them per-
form the same money function,
and hence there is no need Of
concurrent circulation. When
silver is endowed with the same
money function as gold, it an
sWers the same purpose and
utility as gold. AS a matter of
practice the cheaper metal al
ways circulates.
Under the true bl-metallism as
established by our constitution,
the government. does not, buy,
nor own, the metal It coins. 1t
simply coins the metals into full
weight coins according to the
mint law for all and everybody
That brings the bullion, and hands
them back the mum Der of dollars
that the bullion will make. The
government has nothing to do
| with the commercial value of
coins. All this talk about the
government making one dollar as
good as any other dollar is simply
nonsense, except in so far as the
legal tender quality regulates
their value. 1t make the coins
equal in debt paying power, but
not in exchange or commercial
value. The commercial value of
the dollars depend on supply ard
demand. The legal tender quail.
ity by virtue of law, of course,
makes dollars in demand for their
debt and tax paying power, and
thus enhances, in fact, regulates
their commercial value.
Up to 1873. this country was
under this system.
How did it work in practice:
And what are the practical advan
tages Of the system.
Simply. this that the whole
stock of gold and silver of the
world were availa able for our pro
ducers for money supply, for
legal tender dollars.
For instance. Let US suppose
a grain dealer, with say 100000
bushels of wheat on hand that he
wished to sell. He would hunt
the world over for some body
with either gold or silver, or
both who wanted wheat. He
would exchange his wheat for
either gold or silver in any form
foreign coins or bullion-and
! take the metal he could get the
| most of at tho coinage ratio, the
/ metal that would make the great:
] est number of dollars. He could
do that BECAUSE the government
stood ready to coin it into dollars,
# necessary. But as a matter OF
fact very little Of the metal would