The Atlanta constitution., 1897-09-20
Mr.. Ca ge Talks.


Mr. Lyman J. Gage, secretary of the
treasury, has essayed a reply TO Mr. Bry-
ans letter 10 The New York World This
reply reads as if it were made much
against the secretary's will, or that he
had delegated its preparation to the re-
porter who visited him. We take the
following remarks as a specimen of the
whole:
All that the mint does with the man
who brings to the mint certain number
Of grains Of unconed gold is TO give him
I'm return the same number or grams III
coined goddess enough TO pay for the
metal alloy used by the mint in coming.
All that II could do for silver at what
ever so-callcd rate would bc TO give 90
the man bringing uncoined silver TO the
mint an equal amount IN ounces and grams
OF coined slvcr-icss the cost OF the alloy
used Wy the mint IN coming Il. In neither
case is there any demand thus set up.
In the ono case the man has his gold
returned 80 him in gold dollars. In tho
other case he has his silver returned TO
him In silver dollars.
Up TO this point nothing In the shape
OF demand" such as Bryan talks about.
has appeared. Why. then. do,s ne sophist-
cate about "the demand thus created by
law when there is no demand thus ere
atcd by law?"
IT there is demand" for either gold
or silver dollars. it must lie outside of the
mint. i'm the commercial world
This commercial demand would express
Itself in the ratio or price at which things
would be offered In exchange for one as
compared with the other
Take the legal tender quality away
from both, and neither Mr. Bryan nor
amy of his intcl gent followers would
would bring in exchange for things any
substantially hIgher price ttan the bullion
would bring before being coined.
The secretary fails to sJa,e the case
broadly Au that the mint does for a
man who carries his bullion there is to
give him lawful money for il money
that is the creature of the law. Neither
gold nor silver is money until the mint
has stamped them with the sign and seal
Of lawful money IN return for his in
ert bullion. the man gets dollars that
Will be accepted everywhere by the peo-
pie. not only because they need them TO
pay debts. but because they need them
20 carry on business. 10 maize invest
ments and to facilitate exchanges.
Mr. Gage says that UP TO the moment
whom the man gets his dollars. no de
mand" for them has appeared. 40 de-
m1nd for lawful money, We doubt II
a secretary Of the treasury ever before
uttered or iud0rsed such a statement as
that. That the law creates q demand for
q metal that can be freely coined into
money is shown by the fact that since
the repeal of the laws that opened the
miuts To silver. he demand has ceased,
with the result that gold has appreciat-
cd while silver has deprecated.
As a matter of fact, the opening of q
mint to the free coinage OF gold or
silver at a given ratio implies an unlim-
itod demand for that metal The ra-
ito is. in effect, the mint price and un-
limited coinage means that the mint will
coin SO many grains Of the metal into a
dollar or exchange for il dollar all
ready coined. Thus, if nm owner Of sil-
var bullion can exchange at the mint
ten ounces Of silver for $3.50 or have it
coined into that amount of money. its
price or value is fixed
IF there were no law creating money
poople would be compelled to fall back
ON the various forms of barter. or en-
ploy as money whatever commodity
they found most convenient. But when
the law says that coins OF gold or silver
small lee recognized as money and ac-
cep-ed as such. then the demand for
money is equal 10 the multiplied demand
for an commodities