The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-08-23

w. T. Sartiers. leader of the straight
out Mckinley faction Of the Republican
party in Montana. who submitted
series of fourteen questions. all bear
ing on the silver question. Mr.. Bryan
prepared his answers that afternoon
and furnished copies Of the questions
and his replies 10 the press. They are
as follows:
Question 1. When it is enacted that
4l219 grains of standard silver shall
constitute a dollar, do we thereby fix
the value of silver or merely define the
meaning Of the word dollar?
Answer. The present silver dollar
contains 41211s grains of standard silver
When the minis are open to the free
and unlimited coinage of silver, the
government simply declares that that
amount of silver when coined, shall
constitute q dollar just as it now DC
ciares that 20 $40 grains of standard
gold, when coined. constitute dollar.
The purchasing power of the dollar,
both under the gold standard and I'M
der bimetallism, depends upon the
number Of dollars. Under the gold
standard the law declares that all gold
OF standard flneneSS may be converted
into money, and the primary money de-
pends upon the amount of gold present
ed for coinage. Under bimetallism the
government declares that all gold and
sdlyer of standard fineness may be con-
verified into money al a fixed ratio, and
the amount Of primary money depends
upon the gold and silver presented for
coinage The government does not de-
eide what the purchasing power of a
dollar shall be, whether 1t be gold or
silver, but the government can increase
the purchasing power of the dollar by
limiting the coinage to gold alone, or
it can lessen the purchasing power of
a dollar by admitting silver to coinage
on equal terms with gold. The gold
standard has increased the purchasing
power of gold by increasing the de-
mand for il. BimetalliSm viii reduce
the purchasing power of gold Just to
the extent that the gold standard has
increased it.
Question 2. Is the commercial value
of the metal in q coin the measure of
its value. and essential in determining
its efficacy as money!
Answer. Under free and unlimited
coinage there can be no material off
ference between the value of the metal
and the coin, because any one desiring
the coin can present the metal for COIN
age without limit and without charge,
melt the coin. Bimetallists contend
that free coinage Will SO increase /. D..
demand for silver as to raise the hui
lion value of silver to S1.29 per ounce,
measured by gold. Gold and silver have
been driven apart by hostile legislation,
which has increased the purchasing
power OF an ounce of gold on the one
hand, and decreased the gold price of
silver on the other. Bimetallism will
increase the demand for silver and les
sen the demand for gold. thus bringing
the metals together and making an
ounce Of silver, whether coined or un-
coined, worth S1.29 in gold, and the sill
yer dollar Will then be equal TO the
gold dollar in this country or any
where else In the world.
Question 3. If silver dollars contain
ing varying quantities of silver were is
sued from the minis as legal tender
money, would they circulate contem-
poraneously as money?
Answer. If the holder of silver bull
lion was permitted to convert his bull
lion without limit and without charge
into dollars differing in size, but le
gal tender for the same amount, he
would convert his metal into dollars Of
the least size. If there were in eircu-
lation dollars of different weights, the
heavier ones would be recoined into
recoined, would pass at a premium. In
other words. two silver dollars of diff
ferent weights would not circulate to-
gether under free and unlimited coin
age.
Question 4. Will coins of different
commercial value fulfill the same mon
etary function if the law calls them by
the same name, and imposes on them
indiscriminately the same monetary er-
rand?
Answer While it is true that two
coins of the same denominatio but Of
different commercial value. Will not cir
culate at par under free and unlimited
coinage, it is also true that the com
rlercial ratio will conform to the legal
ratio whenever the coinage demand is
equal 10 the supply of the metals The
law can change the commercial value
OF a coin by increasing or decreasing
the demand for the metal Of which the
coin is made. 1t is not fair to say that
the commercial ratio now existing be
tween gold and silver bullion will re-
main the same when our minis are open
TO the free coinage of both metals. The
gold value of silver fell when the Indian
1lints were closed. 1t fell again when
1t became apparent that the purchasing
clause of the Sherman law would be
repealed. The sold price of silver rose
after the passage of the Sherman law.
when it was thought that the govern
meEt had created g demand sufficient
10 absorb all the surplus bullion. The
whole theory of bimetallism rests upon
the fact that gold and silver are pro
duced IN limited quantities-hence
called precious netals-and that a mon
etarv use can he created for both sglf-
ficierrf TO absorb at the ratio fixed by
law all the gold and silver presented for
coinage.
Question 5. Is it true that a metal
commercially undervalued in a bimetal-
die system of coinage viii be boarded
or exported?
Answer. If either metal is CONNER
cially undeTVaAued, it will be at a pre-
1nium under bimetallism. 1t may not be
boarded, because when one boards
it may not be exported. because it can
pass at a, premium at home. For in
stance, during the war, gold and silver
were at a premium, and yet they were
used in this country. From 1882 to 1884.
gold was at a premium in the United
States. From 1884 to 1860 silver was at
a premium. and yet during all that pc
z-iod we had both gold and silver in the
country. and the debtor had a, right to
cay MS debts in either coin. While he
may not have exercised the option Of
ten. the option was of advantage be-
cause it protected him against a corner
in either metal.
Question g. In what country does BIZ
1netallism in fact now exist in its none
tsry system. where coins of both metals
circulate as money?
Answer Gold and silver do not now