Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1896-04-16


to change the standard upon which bust
ness was then being done. He recog-
nized the danger to commerce Of chang
ing the standard. He therefore reduced
the amount Of gold put into the dollar,
SO that under the new coinage the bull
lion value Of both dollars would be just
equal to the dollar then in use and at
his instance q new ratio Of 10 to 1 was
passed. 1t was soon found that this new
ratio undervalued silver, and shortly
after 1884 this country went to the gold
standard Of 20. s grains Of gold to the dol
lar and has been on it ever since, with
the exception Of the time incident to the
war.
Under the new ratio, after 1884, even
fractional currency was worth moro
when melted than it's coinage value,
and therefore in 1868 it became neces-
sary to provide fractional currency,
containing a reduced number Of grains
to the dollar, and their legal tender was
limited to IS. The Spanish milled dol
lar was still in circulation, but the
highest amount Of foreign silver by the
estimates Of the treasury department in
circulation at any time was $50, 900, 900.
In 1860 the gold circulation was
1914, 100000 and subsidiary silver
$21, 100000 While 200, 900 silver dol.
lars had been coined they have all gone
out of circulation, being worth more
when melted as bar silver than theD
face value.
These facts prove that free and unlim-
tied coinage Of both metals by the Unit.
ed States did not substantially affect
the bullion value of either metal; that
the cheaper metal became the standard
Of value, and the other went out of cir.
culation.
If 68 years Of experience with free
and unlimited coinage Of both metals
showed that by free and unlimited coin
age we We're unable to affect, first, the
value Of silver, to make it equal to gold
at the ratio Of Is to !, or, second, the
value of gold, to mako it equal to silver
at 16 to /, when the difference in their
bullion value was only per cent, is it
not preposterous to claim that free and
unlimited coinage now will SO increase
the value Of silver when the discrepancy
is so per cent?
It cannot be claimed that the legisla-
ton by the United States in 1878 seri-
Ously affected the commercial value Of
silver, for since that time we have fur
nished a market for 5000, 900, 900 Of sill
YER, very much more in proportion to
our increasing commerce than went
through our minis during the days Of
free and unlimited coinage Of silver.
The fall in the price Of silver can
easily be accounted for In 1878 the
worlds product of silver at coinage
value was $S1 100000; in 1899, it was
s196, $50, 900; in 1898, 5000, 1875, 900,
and in 1894, 1914, 4S1 200. This enor-
nous increase in the production Of sill.
yer took place despite the fact that sill
yer had fallen in value so per cent.
By legislation passed in 1912 Nor
way and Sweden and Germany suspend
ed the coinage Of silver in 1874. Ger.
many demonetized silver and put $780,.
900, 900 of bullion upon the markets Of
Europe. Denmark, Holland, Russia,
Austria and Hungary each suspended
the coinage Of demonetized silver. The
Latin union, composed of France, Bel
GUM, Switzerland, Italy and Greece,
was forced to suspend the coinage of sill
yer because it was found impossible by
free coinage to sustain the value of sill.
yer bullion. This was done by suspen
sion for 10 months at Il time from 1874
70 1878, when the suspension was made
without limitation IL; to the time Of
rontinuance. Since then india, Brazil.
Argentine Republic and Chile have sus
pended free coinage. ---Sec1etary Hoks
| Smith at Gainesvillo, Ga, jay Pr