The true northerner., 1897-07-14
PAST AND FUTURE OF SILVER.
The White Metal Has steadily shrunk
I'm Value.

I'm Value.
A Springfield Qll.) reader of the
Globe-Democrat asks what is the value
of the silver in the standard dollar when
silver is quoted at 60c an ounce, around
which figure it has lowered recently,
and also asks if, in our opinion, silver
will not have 10 be limited to subsidiary
uses only If the metal drops much be-
low its present price. The answer to the
first query is that with silver quoted at
60c an ounce the amount of silver, 371H
grains, in n standard dollar is worth Acc
and mills, or slightly less than 46Hc.
The designation, soc dollar, that is to
say, which was applied TO it in the cam
vass of 1896, and which, according to
Chairman Jones, of Arkansas, hurt the
popocratic party in the campaign more
than anything else that was said by the
republicans and the gold democrats,
does that coin too much honor. 1t as a
46c or 47c dollar.
Now that silver absorption by the
government has stopped, never to be re-
newed under existing conditions, it is
interesting as historical question to
has shrunk in value, despite the at
tempts of the government, persisted in
for Is years. to send it up TO tile gold
line at the United States coinage ratio.
When the Bland law was enacted on
February 28, 1878, the bullion value of
the silver dollar was 92c. The friends of
the law said that act would send silver
cln ha lNa.
tween it and gold at the ratio of sixteen
to one proportion. No prophecy, how
ever, was ever more completely and
signally falsified by the event. Silver
went down in place Of up, and the coin
which was to be n 100c dollar in a few
months after the enactment Of the law
was n 90c dollar instead. 1t was an soc
dollar in 1890, when the Sherman law,
which was TO quickly and permanently,
according to some of the sooth-sayers,
send it up to the 100c line, was passed,
but it was down TO 76c in 1891, and was
below 60c when the Sherman law, in
1898, was repealed. There have been
few short rallies since 1898, as there
were in previous years, but the general
tendency in silver prices has been down.
ward since that date as well as for
many years before.
What effect will this shrinkage have
upon the silver currency now existing?
None whatever. The silver dollars, sill
yer certificates and Sherman notes, the
latter of which were issued against de-
posits of silver bullion, can all be held
at their gold level now that their vol
ume cannot be expanded. While the sill
yer element of the circulation is sta
tionary, and will remain so, the gold
element will keep on increasing. 1t
will doubtless increase much faster
than population or business. Thus the
silver per capita will continue to con-
tract and the gold per capita to expand,
and silver will no longer be a menace TO
the country's financial stability. The
Sherman notes are practically gold
currency. Silver certificates are re-
deemable in silver dollars, and silver
dollars are their own redeemer-that
is, they are, in the jargon of the silver
ties, primary money" Virtually and
construCtively, though, both silver GER
tificates and silver dollars are made re-
deemable in gold by that clause of the
Sherman act-a clause that still stands
which proclaims that sit is the estab-
lished policy of the United States 10
maintain the two metals on parity
with each other" SO long rs the gold
currency continues to increase and the
silver currency remains stationary, the
silver dollar and its DaDer rpDresenta-
tive will be held up TO the 10Oc line by
the government, even though the dol
lars bullion value shrinks 10 10c or 1c.
st. Louis Globe-Democrat.