The Providence news. (Providence [R.I.]) 1891-1906, 1896-09-29

this matchless durability of the metal,
as well as its value, which scarcely
changes from century to century, which
makes gold the basis of the financial
system of every age and OF every civil
lised country.
Very different ia the case with silver.
Like gold, il is also alloyed. In general
the larger pieces are the purest. while
the subsidiary pieces which do all the
hard work are much less pure. They
contain more base metal to stand wear
and tear. Thus 2 half dollars. or q
quarter dollars, or 10 dimes. or 30 half
dimes do not contain as much silver as
one dollar. That is the rule in our own
land, and it is also the rule in nearly
every civilized country. Silver, how
ever, is convenient for monetary pur-
poses, and its advantages outweigh its
disadvantages. Silver is easily attacked
and corroded by sulphur, acids, salt wa
Ter, sewer gases, and even common IL
Illuminating gas attacks the metal and
gradually converts it into various chem
ical compounds.
When silver is coined, the stamp,of
the government gives it its value. Ina
few instances governments have put
more metal value into silver coins than
the coin was worth. In such cases these
coins are quickly bought up and are re-
melted.
In the beginning of our history the
founders of the commonwealth made
serious error In the valuation OF silver
and put 81 05 worth of the metal into a
dollar coin. The result was that the
coin was bought up the moment it was
issued and never circulated. The gov
ernment perceived the error and ceased
coming it altogether. For about 40
years we had no silver dollars in Amer
ican coin, but used the Spanish milled
dollar instead In fact, the Spanish dol
lar and the Mexican dollar were about
the only dollars in circulation In the
United States up to the time Of the re-
bellion in 1861.
During the first So years 81 the ma
tion's life only about 100000 silver
dollars were coined, of which a very
large proportion went into the melting
pot. The $500, 900, 900 which were used
by US were Spanish and Mexican.
In other cases the government stamp
gives the real value to the coin. The
difference between the market value and
the coin value is only promise of the
government to pay. This is true Of the
penny or cent, of the nickel, of the sill
yer dollar and Of all of the subsidiary
coins.
The standard value Of the silver dol
lar, for example. is 53 cents Of silver and
AZ cents promised. People at home ac-
accept il at the metal value. The Amer
ican silver dollar in foreign lands is SO
cents and no more. The American peo-
pie take the coin for a dollar because
they are confident that our government
can and will give them a dollar for it
whenever such exchange is demanded.
Under our present system Of limited
silver coinage this can be done without
any trouble. The government has $780,
600. 900 worth of silver in use in this
manner. The real value is 1918. 000,-
900, and the difference, $3.50, 600, 900,
is practically an o u.
The loss upon this, which the govern
ment pays, is the interest on the money
expended in buying the silver. This at
3per cent is SIS, 600, 900 a year. In other
words. the government, by limiting the
coinage and by expending SIS, 900, 900
a year, is able to hold eco, 900, 900 sill
yer dollars ia circulation as good as
gold. 1t is now proposed by the silver
ties TO make this coinage unlimited. II
such action had no other effect, it would
increase pro rata the expense of the gov
ernment. 1t makes no difference who
holds this unsoupd money, the govern
ment--that is, the people-must pay for
it.
1t is clear that were our government
ten times as rich it could not perform
this AZ cent promise. AT this mo.
ment, with limited coinage, it amounts
to S262, 900, 900. We're il unlimited, it
would become $4,000. 900. 600 or s3,-
600, 100000 or $4,000, 900, 900 and
would saddle us with national debt
the greatest the world has ever known.
Such money would have only the pur-
chasing power Of the metal it contained
In all foreign lands and would therefore
double the price of every imported ar
ticle. In our own country, if it did any
good at all. it would merely be to bene-
fit the great silver kings and mine own
ers, such Us Stewart. Jones and 30 others,
who now represent nearly 1000, 000,-
600, ard who, if the silverite ideas could
be carried into execution, would bo
made worth just twice that enormous
amount, and all at the expense Of the
people. EDWARD BEDLoE,
Formerly Consul at Annoy, China