The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1896-06-10
SOME HARD FACTS.
THEY HIT TELLING BLOWS AGAINST
FREE COINAGE AT 16 TO /.

Rest Observation-Disclosures the Proposed
Free Coinage-Pictures the Awful Eoute
We Must Travel to Reach a Silver Basis.
Would Finally Have Dollar of Uncer-
tain Value Which Would Hamper Both
Domestic and Foreign Trade.
The Hon. Hoke Smith, secretary OF
the interior, delivered speech in New
York On May 16 on the currency ques-
ton. 1t is speech that should be read
by all who buy and sell and who vote
or have influence with voters. 1t is as
follows:
The people of this country make their
contracts payable in dollars. They do
business in dollars. Uncertainty as to
the meaning of the word dollar must
create doubt as to the effect of con-
tracts and general distrust in business
The dollar Of the United States at
present has distinct meaning. 1t Is
equivalent to %. 90 grains Of pure gold
Paper dollars are mere promises to pay
in coin. Silver dollars, while they con-
tain bullion worth only about 90 cents
each, have been surrounded by safe
guards of legislation limiting the num-
Der coined and supporting them By the
credit Of the government, SO that they
have been kept on parity with gold
dollars. Twenty three-twenty two-one-
hundredths grains Of gold therefore
measure the value of what is meant by
dollar, when the term is used for
trade here, and this has been true for
about SO years, with the exception of
the period during which paper dollars
were deprecated.
Upon the floor Of the house Of repre-
sentatives in 1858, when the bill was
pending which made fractional cur
rency subsidiary, Cyrus l.. Durham OF
Indiana, who had charge of the bill,
said
"An objection urged against this pro-
posed change is that it gives us gold
standard only Gentlemen talk
about a double standard Of gold and sill
yer as thing that exists, and that we
propose to change We have had but a
single standard for the last three or four
Years; this has been and now is gold; we
propose to let it remain SO and adapt sill
yer to and regulate it by gold.
After this long experience IN the use
Of dollars based upon 1922 grains OF
gold the advocates of silver demand its
free, unlimited and Independent coinage
at the present ratio.
This is really proposition to remove
from silver dollars the safeguards OF leg
islation which surround them, to with
draw the limit and to take from them
the support Of the government. 1t is an
effort to reach bimetallic currency by
the free and unlimited coinage OF two
metals at a fixed ratio which places 100
cents worth Of bullion i'll the gold dol
lar and so cents worth OF bullion III
the silver dollar.
The experience Of every country which
has attempted the free and unlimited
coinage Of two metals at q ratio disre-
garding the commercial value OF the
bullion of each metal put into dollar
has been the coinage and use OF the
cheaper metal and the loss as money OF
the more valuable metal The principle
is thus expressed by Sir Isaac Gresham;
"If debased coin is attempted to be
circulated with full valued coin, all OF
the latter will disappear from circula-
ton, and the overvalued and debased
coin will alone remain, to the ruin OF
our commerce and business.
This indisputable doctrine was taught
in the fourteenth century by Nicholas
Oresme and again in the sixteenth cen,
fury by Nicholas Copernicus. Coming
down to TIT, Sir Isaac Newton, at that
time director of the mint of England
declared:
IF silver leaves the shores of England
in crowns or in ingots, the produce Of
coins remelted, ana gives place to gold,
it is because the value which the none
tary legislation assigns to it, i'll relation
to gold, is not correct. y
Apply the lesson practically to oul
own money With free and Unlimited
coinage of gold and silver at the ratio o.
16 to / silver recommendation would re
suit, and the measure Of the value o.
our dollar would be 37114 grains of sill
yer, worth about Is grains of gold.
But the advocates of silver coinage
insist that with 371A grains of silver
admitted in unlimited quantities TO the
minis for coinage, free Of charge, the
bullion value of this number of grain!
would necessarily be equal before coin
age, to the coined dollar. This is true
and it would be equally true of 1O(
grains, or of grain, if admitted fret
and in unlimited quantities to coinage
Indeed, if chips were admitted free ant
in unlimited quantities to the privilege
of being stamped into dollars, the chips
before they were stamped, would bt
worth as much as the dollars after they
were stamped. but unfortunately thu
dollars would be worth no more thai
chips.
Another favorite argument Of the fret
silver advocates refers to the experience
of France and they have claimed al
over the country that France, from $50;
to 1874, by fixing legal ratio for the
coinage of silver and gold lat 5la to ~
kept the commercial ratio between the
two metals at the same figures. This
inaccurate statement has been one ot