Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-02-05


Emulsion.
basis of 16 to /, the old relative value of
Silver and gold which existed before these
new conditions came in, would be restored.
The assertion so frequently made that
the mere legislative suspension in 1873 of a
law authorizing the free coinage Of silver
caused the decline of silver, when for II
years prior to that time almost no silver
mad been coined by our minis for circula-
ton, affords a most remarkable illustration
OF .he potency OF persistent iteration of
an absurdity.
The only way in which the closing or
opening of minis to the coinage of silver
can bring about a rise of the metal is
through diminuticn or an increase of the
demand or-silver bullion. 1t is significant
Y inns connection to recall that the United
states mas used five times much silver as
money IN the seventeen years since 1875 as
IL USED IN the hrst seventy years of the ex-
lstence OF this government under the Con-
sututlon. And 1t is worthy of note also as
an indication of the comparatively small
influence of a demand for silver by the
United states alone, that notwithstanding
thls country purchased between 1880 and
1888 "a million ounces of silver per annum-
substantially the American product and
one-third of the product of the world-yet
after a temporary boom, silver began to
fall more rapidly than before, undoubtedly
Tor the reason that the small increase of,
price at first so increased the profits of
silver mining as to stimulate production
more than ever.
The fact must not be overlooked also that
while 1t is probable that the value of gold
which had declined somewhat under the
large Californian End Australian pro6uc-
uoa from 1850 to 1865, and rose again as
the production declined after 1863, yet since
1880 the increase of production has been
greater than ever before-risng from S11s-
10000 In 1879 to s2050000O0 in 1899, with
the probability that the production this
year will reach 5000 600, which is almost
of g H.
Californian period.
The persistency with which reference is
made to the fact that from 1884 to 1873 our
law made the coinage ratio of gold and
silver 16 to 1-although in the last twelve
years of that period neither silver nor gold
was coined for circulation or used as
money,-as If 10 to 1 was a Divine estab-
hshment OF natural and permanent ratio,
would be amusing if it were not so mis-
cnlevous in its influence.
The Changing Ratio.
At the time OF the discovery of America
the commercial ratio of gold and silver
was about 10 1-2 TO /, and the coinage ratio
followed the commercial ratio Then came
the great increase of production of silver
caused by the opening of the rich Mexican
and South American mines, and the COM
mercial ratio of gold and silver was
changed about 100 to about Is to l.
the coinage ratio following. When Hamil-
ton made his investigations in 1892 he sup
posed that 10 TO l was then the average
commercial ratio and consequently on his
recommendation Congress fixed IL to ] as
the coinage ratio. Nobody appeared to ask
that the ratio of 10 1-2 to ] fixed by the
fathers of 1893 should be restored In 1884
the fathers of that day again changed the
ratio TO 10 TO because they found that in
fixing the ratio at IL to i in 1892 they had
slightly undervalued gold, in consequence
of which very little gold was taken
tn he t,oTc h,
the ratio at 10 to l I'm 1884 it was found
that they had undervalued silver slightly,
SO that very little silver went to the mints
to be coined after 1S40. Indeed I'm 1872 il
was ascertained that even our fractional
silver, which had prior to that time been
OF standard weight, was being withdrawn
and melted and to prevent this Congress
reduced the weight of this silver. In 1850
according to a treasury report there was
scarcely twenty millions of fun legal ten
der SlVer in circulation. All this simply
SHOWS that under free and unlimited COIN
age not only is the value purchasing
power of the minted coins determined by
the commercial value of the metal and
that the coinage ratio must he substan-
tally the same the commercial ratio
in order to secure the concurrent coinage
and circulation of gold and silver coins,
but also that IL is futile to expect that the
opening of the minis of only one country
to the free coinage of silver can materially
affect the value of silver.
Mexico as an Object Lesson.
We need not, however, rest the case on
| reason and past experience alone for We
have at our doors an object lesson of the
results of 1G12 to 1 equal and unlimited
coinage in Mexico. For years Mexico has
tried free coinage. She avoided what is
facetiously called 1.-The crime of 1873" Her
laws today permit the coinage of both sill
Yer and gold at the ratio of 161A to /, and
yet not dollar of gold is taken to her
mints or is found in use as money. She
has only silver as her metallic money, and
Is today a silver monometallic country
Notwithstanding she coins a large amount
OF silver-29 millions in 1S93-for the reason
that her coins have been for many years
current In China, thus making her expert
ment that of 100 millions of people, yet
MeXicos open minis and MeXfcos demand
for silver do not Seem to have the slightest
| effect in raising the price of silver or pre-
venting its fall.
| But / will not occupy the time Of the
| House further at this time on this vital
| point-that of the possibility that of 16 to
L free and unlimited coinage by this coun-
| try alone would give in fact both gold
and silver as our metallic property money
for, as have already said, it is the duty
| of those who urge such a policy to show
| beyond reasonable question that this would
| be the result before the nation can be rea-
| sonably asked to take such leap in the
dark.
ment, will never consent to the adoption OF
| any policy which will deprive US OF gold
and leave us a silver monometallic nation.