The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-05-03

Of them 20 BE seen All solo and export
ed And SO regular is this operation that
the director Of the mint in his latest re-
po-. 20 congress. says that the new coin
ed gold frequently remains ia the mint
uncslied for though ready for delivery.
Until the day arrives for packet 10 SSH
/ 70 Europe" 90
Sumner, speaking Of the period prior to
,sss. says: The fact is certain that the
| laws Of the mint gave the country sill
yer currency only. ard that gold was sx-
ported or melted CID.
! Laaghi;r. noted for the historical accur-
: acy Of his statements. says: Certain II -
that gold disappeared. and that The Cnat-
ed States nea but single silver currsl-
( ey as early As lsi7, and probably earlier
On.
ssosies. . standard financial authority.
says: For several years after establish
ing the mint ana regulating The coinage.
the market value OF gold ana silver
abroad and a. home. cosrespolded with
the mint valuation 50 thar both metals
circulated al the legal ratio. Ns.thsr one
was worth for expectation more than the
otaer. OF the two metals II was
apparent, even before the war Of ISL. Lha.
gold was more desirable for expectation
than silver. The legal valuation
did not correspond with that OF the mar
ket. Its valuation was too low compared
with silver. and consequently gold fed
to foreign countries Year after year the
current set away from our shore" u0.
The report Of the director Of the mint -or
: January /. ls-S. says: Deposits OF gold
have. for the last three years. been incon-
siderable. While gold bullion is in de-
mand al premium on its standard value
for expectation as remittance. instead
OF bills al The current exchange. no aoe-
Quase IndUcsment exists TO bring il TO
the mint II It's value can be otherwise sat
isfactorily ascer.a.aed. Il is obv.ous that
I II coined and issued under such circum-
stances II can not be retained in circula-
ton Q5).
The report Of the director OF the mint
for January !, lszs. speaking OF the opera
tons OF the mint during lN.6, says. The
amount OF gold deposits has been less than
that Of the year iszo by about s64.01u. q re-
suit attributable. probably. 10 the higher
premium on god. in bullion. ard in every
description OF coin, which has distinguish
ca the last year. This premium mas Va
ried from 10 per cent on gold coins.
The diminished coinage Of gold ia.
therefore. Inc less ~ Ie Regretted. s.nce.
unaer existing circumstances. il cannot.
! when coined. be retained in circulation
u6).
The director OF the mint IN 1858 reported
that from is2l 10 lss3 the premium on gold
ranged from 10 : per cent I'D.
The law Of 1854. xa.cA aas supplement-
ed si-sat!y by the law of 1891. was passed
for the express purpose OF bringing god
back INTO circulation. IGe mint raiio VAS
changed 10 10 TO l. al which ratio the gold
dollar contains BE- grains Of pure gold.
The results OF the law we're Immediately
appareIf.; anu g0id coins were soon how
ing in abundance through all the channels
: Of trade.
But the new law underyalued silver:
; sixteen ounces of silver were worth some
what more than one ounce OF gold. Hence
/ the tendency was 10 sell silver as bullion
rather than TO use II as money. After
California and Australia began 10 produce
gold Ii vast quantities 1t became cheaper
as compared with silver. and cur mint
/ laws could not prevent il. As the pre-
MUM on silver bullion over gold bullion
I at the mint ratio increased. the premium
! on silver coins over gold coins Increased.
BY 1888 the silver dollar disappeared en-
tirely from circulation. and even the
smaller silver coins were to a great ex-
tent gathered up and sold as bullion.
In 1858 congress passed law reducing
/ the amount Of pure silver In the smaller sill
yer coins nearly per cent. and made them
legal tender for only S.. The right Of
free coinage as to these coins was also
taken away. 1t was provided that the
government should purchase silver bullion
and coin these subsidiary pieces as they
were needed for change over the country.
and exchange them for gold coins at
par Qs).
Up TO 1857 some foreign silver coins were
legal tender in this country: but none
OF them were legal tender which did no;
have more pure silver in them than the
corresponding American coins Q9). There
fore, these coins were driven out of cir
cula,ion. because they we're undervalued
at the mint, sooner than the American
chi A ~ 81 ~tv .fuft f1r
the same reason.
As soon as silver coins bore a premium
over gold coins OF or per cent, they
went out of circulation. and the gold dollar
became the practical standard OF value.
The only silver coins that circulated were
the subsidiary pieces. coined only by the
government and at the ratio Of Ass to /,
and some foreign coins so much worn and
clipped that their value was far below that
required by the ratio of IS TO l.
Although the owner of silver bullion
could have it coined into full legal tender
money-dollars-on the same terms that
the owner OF gold bullion could have his
gold coined from 1853 TO 1873. inclusive,
only s5.52i, Sss OF silver was thus coined.
while during the same time ss15 3l2 90 OF
gold was coined. During that period the
worlds production OF gold was only q:
times the production of silver; and this
country's production OF gold was only six
times that OF silver-yet. III times as much
gold as silver came to our minis for free
coinage. And the few silver dollars tina,
were coined were exported or used for
other purposes than money.
1t Is now proposed to offer clear and
strong proof that during a large part OF
the period. 1884 to ls7s-say from 1853 to
1s15-the mint laws of this government
were poweriess 10 maintain the parity OF
gold and silver at the mint ratio, and that
no silver was used as money In this coun-
try at the ratio Of Is TO /.
Senator Jones. as chairman Of the none
tary commission. said; After the change
made In 1884 In the legal relation of value
between the two metals, they circulated
concurTently until about $50 although on
account OF the naturalization OF silver by
the law OF 1874. there was constant tend
ency TO an expectation OF silver in the
settlement of foreign balances .
Between 1850 and 1878. whenever payments
we're made in coin. gold was used because
II was the cheaper Of the two metals Jus;
as silver was used for a similar reason be-
tween lsl and 1884 o.
Sumner. speaking ~ the law Of 1894 saws.
''As before no one would pay debt with
gold dollars. 50 now no one would nav a
debt with silver dollars. Silver went out
o. circulation and became the better metal
70 export. while FOR the same reasons gold
became the better remittance this way
The only silver which could circulate here
was tina: which was worn or clipped until
II sas not worth more than silver was
rated al In cur coinage" OF the law OF
1853 he says: The silver dollar was no;
altered. but It had disappeared and ceased
% be a coin OF the country O9.
Boiles speaks Of the law Of 1854 as fol-
iews: ''The new vaiuati ton soon exposea
hzsr aeF hz- 81 .4 ~