The times. [volume] (Richmond, Va.) 1890-1903, 1896-05-30
WHAT FREE COINAGE MEANS.


Elba. Va. May p. 1896.
Editor Of The Times:
Please explain through your columns the
meaning Of the free and unlimited coin
age OF silver at the ratio of 10 to l.
and obige S. A. II.
our friend doesn't pay us much of
compliment when he asks for this explana-
ton. We have been trying to explain it
for the past half-dozen years, but we
will make one more effort.
When we set up in business as a ma
ton. some hundred years ago, we had. OF
course, TO have a money system, and we
adopted the scheme Of bimetalllsm. Fiji
teen ounces Of silver were then thought
10 be Of the market value Of one ounce
OF gold, and we accordingly determined TO
coin silver dollars and gold dollars at
that ratio. That is we coined fifteen
ounces Of silver into as many dollars as
we coined from one ounce OF gold. We
commenced our money system, therefore.
with free coinage Of both gold and sill
yer at a ratio or Is TO !. But wrong
estimate had been made Of the relative
value Of the two metals. 1t was found
out that one ounce of gold was worth
more than fifteen ounces Of silver. This
OF course made the gold dollar worth
more than the silver dollar, and, as al
WAYS happens and must happen in such
cases. the gold dollars refused TO circu-
late on even terms with the silver dol
lars. and they were all either hoarueu
or exported. The country went conse-
ouentlv upon a silver basis and silver be-
came It's only money. But IN 1884 Con-
eress resolved to correct this and restore
a true bimetallism If # was able TO do so.
Accordingly. IN 1884 and 1887 ii enacted
statutes which made the silver dollars con-
tain less gold than they had previously
contained. They established 10 TO ! as
the ratio upon which gold and silver
should be coined. That is, they provided
that an ounce Of gold should be coined
into the same number Of dollars that
sixteen ounces Of silver were coined into.
This did the same injustice TO silver that
the preceding act had done 20 gold. Six
foe, ounces Of silver were worth more
than one ounce Of gold, so that the
silver dollar became slightly more valua-
Bile than the gold dollar and the silver
coins at once did exactly what the gold
coins had done. They refused 10 circu-
late upon equal terms with the gold
coins. and all Of them were boarded or
exported. This put us upon gold basis
whore we have been ever since.
During the war nothing was used except
paper. But in 1873 Congress undertook
10 revise all Of the coinage and mint
laws. and as no one had been using
silver dollars since 1897. it dropped all
provisions for coming silver dollar pieces.
Soon after this the mines in our silver
States began to make enormous yields
Of silver. and silver began TO decline in
value. Then the mine-owners, finding
their market for silver disappearing, be
thought themselves Of the Government.
They said, If we can get free
coinage Of silver restored at the ratio Of
1G TO /. we can sell all the silver We
produce TO the American people at the
old price Of silver, although silver was
steadily declining in value. and has now
declined to a point that makes the silver
I'm a dollar at the ratio Of Is to !. worth
only about fifty-one cents. II this were
done, It would be splendid thing for
the owners Of silver mines and debtors
think it would enable them 10 pay their
debts at fifty cents on the dollar. But
it would be dreadful upon the rest Of US.
And there you have all the mystery OF
the free coinage OF silver at the ratio
Of l6 TO l.