Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1896-07-29
The Silver Ratio, 10 to |.


The bit of gnomic wisdom contained in
the mystic figures, Is to l, sent forth by
the late democratic convention in Chicago,
is riddle many wise as we'll as plain
people are unable to declare. They ask
what the riddle means. ''Sixteen to one''
is a phrase used in reference to the coin
age 1t expresses ratio between the two
metals, gold and silver. The weight of
silver is to be 16 times as great as that Of
gold.
In the American monetary system the
unit OF silver is the dollar, and Of gold the
eagle. For comparison Of one with the
other, or, in other words, to find the ratio,
we use the dollar. According to the mint
act, the silver dollar must contain 371.25
grains of pure silver, and the gold dollar
to be equal to it must contain % % grains
Of pure gold. As matter Of fact, neither
the gold or silver coins in circulation are
pure metal. Both metals are too soft for
use in coins. The stamp would soon he
worn away by handling and carrying in the
pocket. To remedy this evil, an alloy OF
about 10 per cent, usually of copper, is
rendered harder and stronger. The alloy
adds 10 per cent to the weights above in
dicated. In other words the silver dollar
Of the currency contains 412.50 grains Of
alleged metal, and the gold 25.S grains.
The ratio, which still obtains, was fixed
by the mint act of 1884. Exactly stated,
it 1898 grains of silver to one grain of
gold. At the time the act was passed the
silver dollar, with the ratio of 1898 to /,
wss more valuable than the gold dollar
for in the European markets the metals
stood Is so to 1. As result, the Ameri-
can silver coins were all bought up and
taken to Europe. Gold alone was found
in circulation. This obliged the govern
ment in 1858 to authorize the issue Of silver
coins in halves and quarters of less than
the standard weight. These fractions of
the dollar contained at the rate OF 1874
grains Of standard silver instead of 212.5O
grains. By this reduction the silver dollar,
being Of less value than the gold dollar,
furnished no temptation to the exporter,
and the silver coins were permitted to cir
culate at home and for the convenience of
our people.
Since 1884 there has been great change
in the relative value Of silver-a change
such as had never before occurred in history
The white metal has been falling in the
markets Of the world. The change began
about so years ago, and was due to the
new impulse given to mining by the dis
covery Of gold in California. When our
first coinage law was enacted in 1892 the
amount Of silver taken annually from the
mines was very small. Gold had the pre-
cedence. The silver dollar at 1898 to 1
was really little better than the standard
gold dollar, while today the ratio is about
81 grains OF silver to one grain of gold !;
that is, the silver dollar of today is worth
but very little more than half what it was
worth in 1884. The abundant supply has
lowered the price; for in the matter of
price the precious metals follow the same
lawIas other commodities. A great corn crop
reduces the price to IL cents bushel, and,
in the same way, the large harvests of sill
yer send the price down one-half or there
about. The gain in the quantity of silver
is relatively much greater than in that Of
gold, so that the results of the mine have
been driving the values in the two metals
wide asunder. Hence, to go back to the
silver dollar of the fathers is to impose a
false valuation. With the fathers, Is. 98
grains of silver we're worth one grain of
gold. With us it takes 81 grains Of silver
to equal one Of gold A silver dollar today
Is worth only about half as much as was a
silver dollar so years ago.
| If the fall Of silver has been so great,
why do we retain in the coinage the ratio
of 1898 to 1? Why do we not make the
ratio 81 to l? We should be obliged to do
SO if the silver coinage was unlimited or
made legal tender for all debts. But,
in fact, our monetary system is based on
gold. Gold is the standard. Silver is
used only as subsidiary coinage, for the
convenience Of the people. It is issued
in the first place in small quantities; and,
in the second place, it is legal tender, in
the payment Of debts, to the amount of
only five dollars. For any debt above ten
dollars the debtor can demand gold or its
equivalent. Used in this limited way, it
makes very little difference whether the
silver coins are at the ratio of Is SO to |,
or of 81 to 1.
What the democratic platform proposes
is quite different matter. 1t proposes to
coin silver at the ratio of 16 to L; that is, it
proposes to issue silver coin worth about
50 cents and to stamp it 81; or, in other
words, it proposes to brand the white metal
with lie on the face of it. 1t proposes to
oblige the government to tell the lie
and place under it its own countersign.
This is establishing untruth by law. If the
platform went no farther the Gaze would
not be SO bad as it really is. But the
platform does not stop here. Having
made its cheap dollar it would oblige every
debtor to accept, to meet his claim, the
80 cent dollar to cancel an obligation for
100 cents. That is to say, the platform
| would make the deprecated silver dollar a
legal tender for all debts. 1t would be an
ex-post facto law, retroactive, changing
the values in past obligations. Besides
this, the coinage of silver is to be 'sfree
and unlimited
At present no private coinage of silver
is allowed the government purchase what
ever is needed to be used in subsidiary
coinage. When individuals were allowed
to bring silver to the mint on their own
account, the mint made a charge in the
shape of seigniorage. The new order
would be to allow anyone to bring silver
| bullion to the mint and have it coined into
dollars and the fractions of dollars without
any charge for the mintage. But the most
astounding proposal of all is the issue of
this baser money in unlimited quantities.
OF course, under this rule, the largest
u,,antity possible would he coined for the