The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-09-05

increased the purchasing power of an
ounce of gold on the one hand, and de-
creased the gold price OF silver on the
other. Bimetalii9m will increase the de-
mand for silver ana Lessen the demand
for gold, thus bringing the metals to-
gcthcF, and making an ounce of silver
whether coined or uncoined, worth $l.2g
in gold. and the silver dollar will then
be equal to The gold dollar Il this coun-
tgy or any Where else.
Question 3-If Silver dollars contain
ing varying quantities OF silver were
issued from the minis as legal tender
money, would they circulate contcmpor-
aneou;ly as money ?
Anawcr--lf the holder Of silver bull
lion was permitted to convert his bull
Ion without limit and wi;hou. charge
into dollars differing in size, but n legal
tender for the same amount, he would
convert his metal into dollars of the
least size. If there were in circulation
dollars OF different weights. the heavier
ones would be recoined into the lighter
dollars. on if they were not recoined,
would pass at a premium. In other
words, two silver dollars Of different
weights wouid not circulate together
under free ana unlimited coinage.
THE TWO RATIOS.
Question will coins Of different
commercial vlluc fulfil the same none
tary function II the law calls them by
the same name, and imposes on them in
discriminatory the same monetary err
rand :?
Answnr-EFhile It is true that two
coins OF the same denomination, bus of
different commercial value, will not Cir
culatc at par under FREE ana unlimited
coinage, it is also tue tina the com-
,,,a,.iat ,n-y,. ,t-il1 cnnfo,,,, ., thn Iarr I
ratio whenever the coinage demand is
equal to the supply OF tho metals. The
law can change the commercial value Of
Il 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 between
gold and silver bullion will remain the
same when our mints are open to the
free coinage OF both metal:. The gold
value OF silver fell when the Indian
minis were closed. 1t fell again when
IL became apparent h n the purchaS-
ing clause CT the Sherman law would
be repealed. The gold price Of silver
rose after the passage of the Sherman
law, When it was thought that the gov
rrnmCnt had created Il demand sulfn-
Client to absorb all tlfc surplus bullion.
The whole theory or himetallism rests
upon the fact that gold and silver are
produced In limited quantiticS--hcnce
called precious metals-and that a
monetary use can be created for both
sufficient TO absorb at the ratio fixed
by law all the gold II silver presented
for coinage.
CAUSE OF a PREMIUM.
Question 5-Is il true that a metal
commercially undcrvalued In a blmetal-
lie system of coinage will be boarded
AnSwcr-If either metal Is CONNER
cially undervalucd ii will be at a pre-
MUM under bime;allism. 1t may not
he boarded, because when one boards
money he loses the interest upon 1t,
and it may not hc exported, because 1t
can pas: at Il premium at home. For
instance, curing the war. gold ami silver
were at a premium, and yet they We're
used In this country. From 1872 to 1884
gold was at q premium in the United
States. From 1884 10 1860 silver was at
a premium, and yet during all that
period we had both gold and silver in
the country, and the debtor had a right
to pay his debts in either coin. While
J he may not have exercised the option