The comet. (Johnson City, Tenn.) 1884-1916, 1897-09-23

1t fell again when it became apparent
that the purchasing clause of the Sher-
man law would be repealed. The gold
price of silver rose after the passage of
the Sherman law, when it was thought
that the government had created de-
mand sufficient to absorb oil the surplus
bullion. The whole theory of bimetal-
ism rests upon the fact that gold and
silver are produced in limited quanti-
ties-hence called precious metals-and
that q monetary use can be created for
both sufficient to absorb at the ratio
fixed by law ell the gold and silver
presented for coinage.
Question s. Is it true that metal
commercially undervalued in bimetal-
lie system will be boarded?
Answer. II either metal is CONNER
ciaIIy undervalued it will be at prem
ium under bimetallism. 1t may not be
boarded, because when one boards
money he loses the interest upon t,and
it may not be exported because it can
pass at premium, at home For in
stance, during the war gold and silver
were at premium, and yet they were
used in this country. From 1892 to
1884 gold was at premium in the Uni
ted States. From 1884 to 1850 silver
was at 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 he may not have exercised the
option often, the option was Of advant-
age, because it protected him against
corner in either metal.
Question 6. In what country does
bimetallism in fact not exist its mon
etary system, where coins OF both met
ais circulate as money?
Answer. Gold and silver do not now
circulate concurrently at fxed ratio
in any country where free and unlimi-
ted coinage is given to both metals, the
reason being that the bimetallic stand
ard is not in force in any nation sufi-
ciently important to furnish q use for
all the gold and silver presented for
coinage. Bimetallists contend that the
United States is great enough to do
what q smaller nation can not accom-.
plish.
| Question z. II the act of 1873, instead
of dropping the coinage of the silver
dollar, had provided that 2064 grains Of
standard silver should henceforth be
coined without limit or seigniorage an6
be a legal tender for 81, would suct
coins have circulated as money side by
side with gold coins and been worth Ion
cents in gold?
Answer. To have constituted 206.
grains of standard silver dollar, thu
gold dollar remaining as it was, woult
have been to establish ratio Of s to
instead of 10 to /. 1t would have beel
impossible to maintain the parity be
! tween gold and silver at that ratio be
cause other nations afforded more fa
vorable ratio to gold. But when W
: establish the ratio of 10 to we Civ
gold more favorable ratio than nov
, exists in European nations, and there
fore there would be no reason for gol
leaving us.
Question s. If the act of 1878 ha
: provided as suggested in Question
would our silver mines have been wort
twice as much, and would silver minin
> have been correspondingly more prC
8 itable9
Answer. While the establishment {
Q the ratio of 8 to /, suggested in Que
i ton I, would not have maintained til
: parity between gold and silver, it woul
!, have continued the demand for silv.
q as money, and to that extent it woul
u have protected the silver miners fro
y the loss which hostile legislation hi
al entailed upon them.
Or Question 8. Would the silver DOLL
permit of yet further impairment as
D. its weight and fneness, and yet e
re ficiently fulfil the errand and functiC
er of dollar?
o. Answer. Congress has o right
coin money and regulate the val
IL thereof, and this power was exercis