The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-05-20
The Monetary Problem.
THE QUESTION OF RATIO.
Argument Advanced BY William N.
stewart for the Restoration Of Our
Earlier Coinage Laws.

The quantity OF gold compared with
.he quantity used of silver to make a
,.iyen amount of money is called the
ratio between the two metals. This
ratio is purely arbitrary and depends
entirely upon the discretion of the law
makers. 1t is to be remembered that
the aggregate weight of the silver In
the world is about 1914 times greater
than the aggregate weight OF the gold
in the world. This singular coincidence
has led many 10 suppose that the pre-
vailing ratios of the various nations of
the civilized world are ordained by ma
ture. Bimerallists do not base their i'm
sistence that the minis of the United
States ought TO be oren TO the coin
are OF gold and silver al the ratio of
sixteen TO one upon any natural phe-
nomena- They are in favor of sixteen
TO one because il is the established
ratio now in existence under the laws
Il this country. and upon the faith of
which ratio the obligations of the gov
eminent are predicaied. The act Of July
IA, 1870. under which every bond now
outstanding has been issued, provides
that the public debt incurred under
that act shall be paid in coin Of the
standard value of that date duly IA.
l-.O). \ change of ratio would be in
derogation of every contract now out
standing between the government and
its creditors.
No good reason can be given for a
change which would require more sill
YER to be put in the silver dollar than il
now contains. The fact that there are
about $4,000. 900 900 of silver coin now
doing duty as money at ratio approx
mating fifteen and one-half 10 one
must be duly considered. IL the com
mcrcal value of silver bullion. which
j. now denied the right of mintage. is
TO be the basis of n ratio. il would re-
quire all the silver coin in the world TO
be recoined TO correspond with the new
ratio. " hich would contract the worlds
money not less than s., 900. 100000. Such
contraction would be OF the same Grim
final character as the original demone-
iizaii0n Of silver. Ii would rob the
debtor for the benefit OF the creditor.
paralyze enterprise. and produce pow
erty and distress.
1t is constantly rejected by the gold
monometailists that the United States
alone cannot maintain the parity be-
tween the two metals on the ratio OF
sixteen 10 one. and that. therefore. that
ratio must be abandoned. The govern
;uent has nothing 20 do with parity
other than 10 make equal laws. Parity
Of n,
circulation does not depend upon the
cost Of the material OF which they are
made. but depends exclusively upon
their relative functions. Every full
legal tender dollar viii perform the
same service. and is just as valuable as
every other full legal tender dollar in
circulation. Nothing can make n diff
ference in tho value Of full legal tender
money but n discrimination in favor oi
The coin of one metal and against the
coin OF the other. II one kind of money
has useful functions which another
kind of money does not possess. its
value might. and almost certainly
would. he greater than the money less
favored by law.
The suggestion that the silver dollar
would be a 5O-cent dollar under free
coinage at the ratio Of sixteen to one
originates in faisehood and desire e
deceive. The United States has issued
treasury notes from time 10 time since
1873 and made them receivable for all
public dues. Every one Of such notes
which was receivable for government
dues, has at all times been nj par with
coin. Coin and government notes re
ceivablc for government dues never
parted company until provision wa
inserted in the legal tender act repudi
aiing the greenbacks and refusing t.
receive them for duties on imports anc
interest on the public debt.
There are nearly 500. zoo. 900 STANDARD
silver dollars. doing duty as money OF
par with gold. either in actual circula
ton or in circulation by their represent
atives, silver certificates. 1t is stated
that this is because the amount of sucf
dollars does not exceed 500. 900. 900. AT
icntion is called TO what Secretary o.
The Treasury Sherman. the father o
the gold standard. said on this subjec
n 1879:
The total amount OF silver dollars coire,
20 November 1. 1872. under the act OF Feb
rrary =. ISIS. was $s.cts. go. Of which si3.
t-A2 was In circulation. and the remain
cer. t2.c7.55s. In the treasury at that time
No effort has been spared to put this coli
n circulation. Owing to its limited coin
age II has been kept at par: but its fire.
coinage would soon reduce its current valu'
- lis bullion value. and thus establish [
single silver standard Finance Report
4sly. page a.
The purchase and coinage of silve
bullion into standard dollars continufs
for abou; IA years after this declaration
Of Secretary Sherman. and the amour
Of silver coin was increased more thai
ienfold without the slightest dcprecia
ton In the purchasing power Of the sill
yer dollar. This statement Of Secretar,
sherman is cited because il is one of tn
stock arguments OF the advocates Of tn
gold standard. which. like al thei
ether contentious, is in direcs opposi
ton TO existing facts.
Mr.. Cleveland. after his election AM
before his inauguration. on Fcbruar.
"a. fNS, addressed n lpttgr IN Hon 4