The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-08
FREE COINAGE OF SILVER
HON. ROBERT s. TAYLOR DISCUSSES
THE DEMOCRATIC ATTITUDE.
Letter to Senator Turpie, in Which
the FaIiacies of Free Coinage of
Silver Are Made Plain.

mas addressed letter 10 senator IuTple,
in which he says:
l suppose that the Memphis convention
of June Il, 1885, may be regarded as the
birth Of free-silver Democracy. IL my
memory is not at fault you were present
upon that interesting occasion and took a
prominent part in its ceremonies. In It's de-
liverance on the money question that con-
ventiOn declared:
ton of silver to its former place as a full
legal tender, standard money equal with
gold and the free and unlimited coinage
OF both silver and gold at the ratio of 10
10 and upon terms of exact equality"
With scarcely d variation of language the
Chicago convention of July 9, 1886, de-
clared
I'VE demand the free and unlimited coin
age of both silver and gold at the present
legal ratio of Is to l without waiting. for
the aid or consent of any other nation"
The Indiana state Democratic convention
of June p, 1898, over which you presided,
said in its platform:
I'VE reaffirm and emphasize the platform
adopted by the national Democratic conven-
ton of 1896 at Chicago. We are in favor of
the free and unlimited coinage of both gold
and silver at the existing ratio of 16 to
without the aid or consent of any other
nation"
This proposition was submitted to the peo-
pie Of the United States in 1896 and rejected
by them. Its reassertion by your party is
motion for a new trial. That motion will
not be denied. In the great court of the
people the privilege of a rehearing is always
allowed to defeated litigant. You can have
the new trial.
A second trial of a great case ought to
be more thorough than the first one. Your
request for it imports promise to make
it SO; to give try to give better reasons
for free coinage than you did in 1886. l
hope to see your party keep that promise
in effort and endeaVor, and trust the other
side may meet you in the same spirit Let
US go to the bottom of the question this
time If we failed to do so before.
AS starter in that direction 1t seems
to me to be necessary to settle first just
what your proposition means. At Memphis
it was the immediate restoration of silver
to it's former place and the free and un-
the ratio of 16 to l." AT Chicago it was
1.-The free and unlimited coinage OF both sill
yer and gold at the present legal ratio OF
16 to L. At Indianapolis II was the Tree
and unlimited coinage of both gold and Sill
yer at the existing ratio of Ii to l
AN UNNECESSARY DEMAND.
Inasmuch as we have had unlimited coin
age of gold for more than one hundred
years and since 1875 that coinage has been
free that is, without charge TO the owner
of the bullion. and as one is proposing
any change in the law in that respect, this
demand for the free and unlimited coinage
of gold seems to be unnecessary 1t is
worse than unnecessary; it is disingenuous
and deceptive. 1t assumes that silver and
gold having been coined upon equal terms
and at a ratio of 16 to l, can be used as
money equal terms, and that the effect
OF such free and equal coinage will be to
give us the full benefit of both metals and
a corresponding increase of coined money
in circulation. Such an assumption is un-
true. Gold and silver will not circulate on
terms OF equality at a coinage ratio dlIter-
ent from their commercial ratio. Inc gold
in a gold dollar is worth more than twice
as much in the estimation OF mankind to
day as the silver in a silver dollar TWO
pieces of money of such unequal value
could not circulate together for day; they
could not SO much as get into circulation.
The more valuable one would disappear IN
advance of the arrival of the other.
It is the free coinage Of silver ina that you, your
Parry Par Proposes ana fary + ought to- saw SO
directly, and not mix 1t up with the coinage
of gold, about which there is no question
But while this is the whole of your prop
osition in terms, it is only a small part OF
its meaning.
The free coinage of silver imports that
the bullion owner may take his silver to
the mint have it coined and take away
the coins, as the farmer takes his wheat
to the mill and carries away his flour ~
course, no guaranty of the government will
follow the coins. They Will be worth the
market value of the silver in them, and no
more. The same Will be true of the silver
dollars now in circulation. They are worth
more at present because the government
stands pledged to maintain the gold stand
ard, and uphold the value of all the money
issued by it at par with gold; and so puts
its own credit behind the silver dollar. But
free and unlimited coinage of silver is in
have two kinds of silver dollars-one guar
anteed by the government and the other
not. The adoption Of the free-silver policy
would end the governments pledge 10 sup
port the value of it's own silver dollars, and
they would drop at once to the value of the
silver in them. With no gold in circulat ton
treasury notes and bank bills-would be re-
deemable only in silver and so would be
worth no more than silver In a word, We
would go to a silver basis. The only dollars
we would have would be silver dollars. and
paper dollars convertible into silver dollars.
The silver dollar would become the stand
ard of value.
CLAIMS OF SILVER MEN.
do not forget in making these obser-
vations that the friends of free coinage
claim that the adoption of their policy
would enhance the value of silver. No doubt
it would have that effect to some extent
for a time. But that it would bring silver
to par with gold at 16 to 1 seems to me to be
too improbable for consideration. To be az
par with gold at that ratio silver must be
worth $1.29 per ounce; it is now worth about
60 cents. Silver cannot have one value in the
United States and another elsewhere. To
bring the price of it in New York to $1.&
an ounce it must be brought to that price.
or within a minute fraction of it, all over
the world. The worlds present stock of
coined silver is estimated at about ST.,
0O0 100000 in our money at our ratio. It's
market value at the present price is less
than half that sum. 1t would be necessary.
therefore, for to add over 81 200, 900 coo to
the value of the worlds silver money in
order to bring our own to par with gold.
And this, moreover, takes no account of
the silver existing in the form of bullion,
tableware, watches and other valuable ar
ticles of and ornament. all of which
must be bought up at the same level. No
man can seriously believe such an under
taking can be possible.
What would result can be clearly fore
seen in q general sense, though not at all
to specific figures or values. The admfs-
sion of silver to free coinage in our minis
al 16 to l would make a flutter in the silver
market. 1t would advance the price some
what Just how much no one can tell. Any
considerable advance would increase pro-
duction by setting into operation mines now
lying idle and stimulating increased activ-
ity in others. This increased production
would tend to stay the rise, and In the end
depress the price again Where these varl-
able forces would find a stable adjustment.
if they ever would, is beyond the ken of the
wisest man. That it would be far below
par with gold at 10 to ] is morally certain.
l cannot imagine that you Will disagree
with me on this point.
For the purpose of preventing the con-
current circulation of two kinds of coin On
equal terms a small difference in value is
as effective as a larger one: that IS, II
is COMPLETELY effective. This has been dem
onstrated by experience over and over. 1t
follows that the possibilities of rise in the
price Of silver as a result of free coinage
do not help the main difficulty. Enough
difference of Value-far more than enough
to drive out the gold and leave only silver
and a silver standard. would be certain TO
remain.
There is a smack of assumption in this re-
peated use of the words would" ana
to important changes in things affecting his
interest without considering the probable