San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1896-07-23
THE FREE AND UNLIMITED
COINAGE AN ILLUSION.
rom the N. o. States Dem.).


We have demonstrated in a former
article by both the deductive and in
ductive method that the free and UNI
limited coinage of silver, can not in
crease the value of silver and that
congress is powerless. from the natu-
raj limitation Of human legislation to
make 4121S grains of silver equal in
value to 20 $40 grains Of gold. From
the nature of the act of coinage
which only stamps upon the disk of
metal q certificate of its weight and
purity-when this is done without ex-
pense and in unlimited amount it can
not add one iota to the value of the
metal coined. If congress can do this
why not stamp upon 200 grains of
copper or tin-the words Zone Dollar"
I'm God We Trust and thereby MAKE
such copper or tin coins the full value
of % $40 grains of gold? If congress
or any parliament, or king, can do
this-then the divine creative power
to make something out of nothing has
descended upon men. Then by the
inductive method we showed that the
relative value of silver and gold had
never been affected by the quantity
of either coined From 1894 to 1878,
we coined only $S,000000 silver dol
lars and the ratio of value remained
about Is or 1515 or IL to 1, and from
1878 to 1894 we coined 413,OO0,0OO,
more than so times as many silver
dollars, and made them legal tender
in unlimited amounts and yet the
price of silver fell from $1.29 per
ounce to IS cents and the ratio fell
to 80 $4,000 to /, in 1894.
1t is then clear that should congress
enact a law for the free and unlimited
coinage of silver dollars of 4121a
grains, it would be impossible to re-
deem the silver dollars so issued
with gold or to maintain the parity
of the gold dollar of % $40 grains.
There would come into active opera
ton Gresham's law. The cheaper and
inferior money would drive out the
dearer. The clipped and debased
money always drove out the coins of
full weight. The green backs and
Confederate money printed and issued
in excess and beyond the ability of
| the government to redeem on demand
| in coin, drove out of circulation the
| metallic money, and kept it out from
1861 to 1S7S-1S years-until by the
contraction and ABSORPTION by fund
ing of the excess Of paper and the ac-
cumulation of gold, the government
could redeem it in gold on demand.
1t is just as certain as that like
causes produce like effects, that the
free and unlimited coinage of silver
dollars Of 4121a grains will drive out
of circulation and out of use either
as standard of value or as a medi-
um of exchange or basis of CONNER
cia1 transactions 1858, 167 $40 Of gold.
Moreover the Chicago platform
proposes to compel the withdrawal of
the circulation of the national banks
sos, 0S6,S97.
So the first certain and immediate
effect of carrying out the Chicago
platform, would be to contract the
currency, by the amount of $50, 254,
$40 On the first of July, 1896, the
total money in circulation was 81 800
10, 200; so at one blow this policy
would reduce our money supply more
than sc per cent. The contraction q
credits would amount into the bill
lions. No outstanding notes would be
renewed, all mortgages would be
foreclosed No extensions would be
given, no new loans or discounts
made. Every man having capital
would hide it and keep it, fearing
should he put one dollar out he would
get only 80 cents back. This eonven-
ton reached the height of its undem-
ocratic assinine folly, when it propos-
ed TO prohibit private contracts pay
able in gold coin. If there.is one fun
damenta1 article of Democratic faith
and teaching for 100 years, it is free,
dom of private contract. If this pro-
gram should be carried out, the rapid
contraction of the volume of currency.
80 per cent and the contraction of
credits by uncounted billions would
produce such disaster, such panic as
the world has never seen.
The collapse of the South sea and
OF the Mississippi bubbles, which con-
vulsed England and France from
centre to circumference, was nothing
toNit. a gentle summer breeze to cy-
clone and tornado combined.
There is not silver enough in the
world TO fill the vacuum. 1t would
take 20 years to coin enough silver to
supply the deficiency.
There would arise great popular
demand for the unlimited issue OF pa
per money. If the same kind of men
get into congress and the cabinet as
controlled the Chicago convention we
would have all the government print
ing presses set to work printing fiat
money. According to this school of
financiers, all bank issues are to be
suppressed. A flexible well secured
bank circulation, self regulating as to
amount, is to. be prohibited. They
hold it is the sole function of govern
ment to issue paper money.
Then both gold and silver would be