The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1897-03-19
STEPS in THE pEoLlNg.
Legislation Which Has Affected Sal
-.-l.- arn-n-.a ILL.

Legislation EYhfeH Has Affected Sil- /
Ter'H Market Value.
The coinage ratio established by the |
United States congress in 1892, when
the minis were first opened, was if- |
teen to one. In 1884 it was changed to
1888 to i, OF, in round numbers, six
teen to enc, which has never been
changed, The coinage ratios in other
countries are: Sixteen and ohe-half to
enc, in Mexico; fifteen and one-haIf to
one, in Europe; fifteen to one, in In
dia; fifteen and one-half to one, in
Central and South America; about six
teen to one, in China and Japan.
In examining the tables of produc-
ton of silver and gold aud the coin
age and market ratios, the latter run
ming back 400 years, as published in the
reports of the directors of the mint,
it is seen that up to 1873 the variation
between the coinage and market ratios
on the London markets was minutes
inal, never exceeding the fraction of q
cent, but after 1873 a rapid decline took
place. The present market ratio is
about thirty-two to one. This great
variation may be traced directly to sue
cessiFe acts of legislation in the United
States and other countries, and the
causes of this great decline in the
price of silver as measured by gold
have been set forth in a recent issue.
of the Farm, Field and Fireside as fol-
lows:
First.-February 70. 1873, the United
States demonetized oliver, making gold
the sole unit of value, and closed the
minis to free coinage of silver, freely
coming gold only.
Second.-Germany in 1873 enacted
laws demOnetizing silver, making gold
tie sole standard of value. and calling
in all silver coin previously issued and
circulated in the several states of the
German empire. To procure gold neces-
sary for the purpose of coinage Ger
many sold, between 1873 and 1875, a
large amount of silver from her store Of
melted silver coin, including the
amount received from France in pay
ment Of the Indemnity imposed upon
her at the close of the Franco-Prussian
war.
Third.-In 1873 Sweden and Den
mary adopted the single gold standard.
making silver the subsidiary metal to
be coined on government account only
for exchange purposes, and in 1875 Nor
way followed their example,
Fourth.-Holland, which had been on
a silver basis since 1S47, practically fol-
lowed the example Of Germany in 1875,
for, although in that year it nominally
adopted the double standard at the IA
ito of / to IS Sill, as a matter of fact it
prohibited the coinage of silver, and
thus, like Germany, became gold mono
metallic.
Fifth.-In 1874 France and other
members of the Latin union closed
their minis to the unlimited coinage OF
silver, coming only in limited quanti
ties, and in 1878 the minis of the Latin
union were closed to coinage of full Ie-
gal tender silver coins and have re-
ruined so ever since.
Sixth.-1675, suspension Of the fire,
coinage of silver in Italy.
Seventh.-1s75, the Dutch republic
suspended the free coinage of silver.
Eighth.-In September, 1876, Russia
suspended the coinage Of silver, except
10 such an amount as might be re-
quired for trade purposes with China.
Ninth.-1877, the double standard
was replaced by the gold standard in
Finland.
Tenth.-18S7, Spain demonetized hel
silver piasters.
Eleyenth.-The free coinage of silver
was suspended in Austria-Hungary in
1879, although she remained on a silver
standard legally until 1892, when that
country formally adopted the single
gold standard.
Twelfth.-On the twenty-sixth day OF
June, 1893, the legislative council of In
dia passed a bill closing her minis to sill
YER coinage for individuals, and in 0cto
Der, the same year, her action was fol-
lowed by the United States in the re.
peal of the purchasing clause Of the
Sherman act.
ThiTteenth.-The large purchase OF
gold. through the bond sales in the
United States, and the purchases by
Russia and Austria to supply their war
chests, all tended TO increase the de-
mand for and consequently appreciate
the price of that metal.
Fourteenth. II 1895, Chill adopted
the gold standard.
Fifteenth.-1s95, Russia decided to
coin 1OO,OOO,OOO gold rubles in 1896.
These various acts Of legislation
greatly increased the demand for gold
and diminished the demand for silver,
and as there were now no open minis to
maintain the ratio by creating an I'M
limited demand for the metals, they,
for the first time in ages, parted COM
pany, and the coinage ratio no longer
fixed the market ratio.