The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1897-12-01
THE DOUBLE STANDARD IN HIS
TORY.

TimeS- Herald.
Although we have often narrated tae
facts concerning bimeta,lism or the Sou-
be standard IN the columns Of The
Tfmes-Heraid. we gladly take up the sub
Set again in response to the following
lette-:'o
Chicago, Nov. Ito the Editor; Is
there any reliable evidence that wnen
gold and silver have been coined at
specific ratio, say lSis to /, that they have
both been kept IN circulation? Would
noA one or the other disappear from cir
euiatIon when me Commercial ratio did
not exactly agree with the Legal ratio:
I would De very glad to have you answer
through the editorial page.
G. L. BLATESLEE
There is an abundance Of evidence. not
only in the financial history y the na-
tions Uf Europe. hut Of our own TINT oi-
netallism-that Is, the concurrent circu-
lation OF sold and silver coins at a spec
ified ratio-never was maintained and
never existed. save temporarily and acci-
NNAAA-Ags III 4AtN NNAlAAtNANsAl NNulANEN IL
the disparity in the commercial value Of
the metals was as small as II per cent
the cheaper metal remained in circula-
tiou while the dearer was used as bull
lion. Wherever the standard has been
double the circulation WIS not concur
rent. but alternate. being first one and
then the other. In accordance with the
value commerce placed upon the metals.
OR first coinage laws were adopted by
congress In i've upon the report Of Alex
ander Hamilton. then secretary Of the
treasury. Hamilton took the utmost
pains. as the report shows to ascertain
the commercial ratio between silver and
gold. and he arrived at the conclusion
that II was Is 10 l. In this conclusion
jefferson concurred and It became the
law. But It proved erroneous, because 1t
undervaluea god to small extent. and
the result was thar sold was exported as
bullion II may be sa.d also in passing
that our own silver coins did not circulate
either. for the reason that congress had
made Mexican and Spanish-American ell
yer coins legal tender and these being
inferior to our own in value drove them
out of circulation
Thus from 1922. when cur mint wns
first established, TO 1894. when our coin
age laws were revised, there was very
little Of American gold or silver coins in
circulation During this period We were
on the silver basis.
In 1884 and in 1897 congress altered the
rnltio from Is to to 16 TO l, and this re-
suited in the disappearance Of s1ver-that
Is. American silver-from the circulation.
Il was more valuable as bullion than
as money. and % course those who pos
sessed it used IT in its most valuable
shape. Gold came into circulation and
from thar time has been the money ~ ac-
count. Even rhe smaller American silver
coins were not IN use. owing 10 the in.
fericr Spanish-American coins in ci-cu
lation
This history illustrates the truth of tht
so-caned Gresham law. that where there
are two standards and two or more kind,
Of coin, all Of Thic,l is equally legal ten
der. the inferior viii be used ar1 the 81
perior win disappear from circulation.
It is a law based on human nature anC
finds proof in the experience of every IN
dlviduG. The history n -+her nations q
r aspect Is the same as our own. an
We challenge any "bimetallist" or silver
, it, to sho,r that gold and silver coin
I ever circulated together IN any coun,r.
at a fixed ratio for any length m time
- or when there was disparity between n
= legal ratio and the commercial ratio