The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-05-17
FOR THE HONEST DOLLAR.
BoK SMITHS WARNING AGAINST
IHE DISASTER OF FREE SILYER.
h ltIs Speech Before the Reform Ciub SIC
Explains the Fatutty OF Free Coinage
Fanatics, nud Shows what Conditions
NVn,,td nbtntn finder n f0 20 4 Policy. |

Fanatics, nna shows what Condition,
Would Obtain Under n ia 60 4 Policy
The lion. lloke smith. Secretary OF the In
tcrior. zane to town yesterday, and last nigh
he was the guest Of honor ut "A dinner winch TN
Sound Money Committee Of the Reform Clut
gave In the dining room OF the club house Al
Twenty. seventh street and Fifth avenue. John
+. Townsend. President OF the Bowery Savings
Bank, presided, and among tho guests were
Justice William ltumscy and Justice Pardon
Williams of tho supreme Court, Senator f. Is
Thomas. Police Commissioner Andrews, Senator
McEldrey Of Alabama. John Dewitt Warner,
George Foster Peabody, Tax Commissioner
Theodore Sutro. Jacob Schif, Commissioner
OF Accounts Terry, Everett +. Wheeler, Oscar
Straus, and Robert Muclay, President of the
Board OF Education. secretary Smith said:
The people OF this country make their con-
tracts payable in dollars. They do business In
dollars. Uncertainty rs to the meaning Of the
word dollar must create doubt as to the effect
OF contracts and general distrust In business.
1.-THE dollar Of the United States at present
has a distinct meaning. 1t Is equivalent to
23.22 grains OF pure gold. Paper dollars are
mere promises to pay In coin. Silver dollars.
. while they contain bullion worth only about 90
cents each, have been surrounded by safeguards
OF legislation limiting the number coined and
supporting them by the credit of the Govern
ment. so that they have been kept on a parity
with gold dollars: 23.?2 grains OF gold, there
fore, measure the value OF what Is meant by a
dollar, when the term is used In trade here, and
this has been true for about fifty years, with the
exception OF the period during which paper
dollars were deprecated.
After this long experience In the use of dol
lars based upon 23.22 grains of gold, the ad.
vocates OF silver demand Its free, unlimited.
and independent coinage Mt the present ratio.
mt a., rnnlt,. - Ton 10 rapn,ua frnIn
silver dollars the safeguards Of Legislation which
surround them, to withdraw tho limit. and to
take from them the support of the Government.
1t is an effort to reach a bimctallic currency
by the free and unlimited coinage of two
metals ut n fixed ratio, which places one hundred
cents worth Of bullion In the gold dollar, aud
dfty cents worth Of bullion IN the silver dollar
tempted the free and Unlimited coinage OF two
metals, at n ratio disregarding the commercial
value of tlio bullion Of each metal put into u
dollar, has been the, coinage and use of the
cheaper metal, and the loss AS money Of the
more valuable metal" After quoting Greshafn's
law Mr.. Smith proceeded thus:
Apply, the lesson practically to our own
money. With free and unlimited coinage OF
gold and silver at the ratio Of 10 to l silver mo-
nomctallism would result. and the measure Of
the value OF our dollar would be ~ IA grains of
silver, worth about ~ grains of gold.
:" But the advocates Of silver coinage insist
limited quantitie. to the mints for COINAGE {" free Ts
OF charge. the bullion value Of this number OF
grains rs W. would Cndns nsG Gnis,sarlly his r. equal before sS c9ip =,
. y. ~ 1919 N'''"' '".' - Va ""A ~
would he equally true of one hundred grains or
of one grain, if admitted free and in unlimited
quantities to coinage; indeed, IL CHI pr were adj
mitted free and in unlimited quantities to the
privilege of being stamped into dollars. tho
worth as much rs the dollars after they were
stamped, but unfortunately the dollars would
be worth no more than chips.
Another tavorite argument OF the free sill
yer advocates refers to the experience of France,
France. from isos to is,4. by txing a legal
ratio for the coinage of silver and gold AT l5ia
to > H. ), kept the commercial ratio IT, between the
has been one of their prime pal argu-
ments. II they will really examine the history
Of France they will find that before. 1890 the
difference between the commercial value OF
gold and silver exceeded Lobe to ], and France
became silver monometallic. Later on, De-
tween 1870 and 1880, the commercial differ
was less than l5le to l. and France be-
gold monometallic. In 1857 the French
appointed u commission expressly
On account of the fact that even the fractional
of France had been melted down Tor
bar silver. and the report OF this commission
shows that France failed to control the COM
mercial ratio by her legal ratio, or TO maintain
two metals. The records of the conferences
between the DELEGATES of the Latin Union, held
annually from 1874 to 1873. show conclusively
that the free coinag OF silver was suspended in
France because it was apparent that France. by
value Of silver bullion at l5lf to l with gold. To
avoid the change of the meaning OF n French
,rano, mat country was forced to suspend free
This country failed to add three per cent. to
II IS to l with gold prior to 1884. and it failed
o add SIX per cent. to gold al d make 1t equal to
Yet the advocates OF free coinage OF silver now
to undertake the experiment at a legal
alto g, q 10 to l. vt S!th0 e1s the srs 9GmmersIal
with a proposition to change tho
meaning of the term dollar from 23.22
Ks s7lN grains Of silver are worth .niy
.bout ID grains of gold. 1t is practically a prono-
iollar ~one-half. 1t il a movement more radical
han one to reduce Openly the bullion in a gold
,erous, but definite. No one knows what 3Ti4
grains of silver would be worth under free and
xhether the Increased demand ' {or silver 10 %o snS
37lA grains OF silver somewhat above l3
nsnd would Eti Shortly I w produce t a ats snGGssisd dsi
of silver below 10 grains OF
In every. country where progress and pros
ars found the great bulk OF business
In dollars, and whatever creates a doubt
IS to the meaning OF a dollar must tend to sup
certainty, and this uncertainty must be re-
moved TO bring back to business normal pros
moving doubt anon this subject c%"ntemplate
orieny the process OF reaching the proposed sill
of a silver standard.
II a President and Congress- were elected in
,oinage of 37lA grains OF silver into dollars,
nearly six months would pass before they could
BIO inauPurated, and six months more before tho
proposed legislation could become law. During
hat time creditors would seek to protect them.
selves against being paid in dollars worth only
.bout l3 grains OF gold. and they would en-
1eavor 20 make collections before the unlimited
,oinage of DEPRECATED dollars began. Thedebtors
you'd not, be allowed to remain debtors until
hey could get the advantage OF paying of what
hey owed at 90 cents or the dollar; they would
BIO forced TO immediate settlements. SheriIs
md constables would call upon them without
telay. Depositors in banks would withdraw
LnelF money. The large nArphanfa fnrraI 90
'ettle their foreign indebtedness. would insist
lpon immediate payment of debts duo from
merchants. The smaller merchants, in
urn, would be compelled To force collections
from their customers. Tho great volume of
bnsiness conducted upon credits would cease.
manufacturing enterprises could not afford 10
continue business or make contracts until the
value of the new dollar could be settled bv the
determination OF Just what 37ll1 grains OF
sllyer would prove To he worth. Manufacturers
you'd close. Business houses would tail. banks
would he raided. Tho unemployed would be
numbered by millions. The farmers would find
lew purchasers for their products. WNnt and
famine would pervade tho land. Al. the ond OF
= Few years. when business settled down 10 Tie
new meaning Of a dollar. the tluCtuations i'm 10