The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-12

metals, each possessing characteristics eS-
sentlal to true measurement, there would
still be, In effect. but one standard. Value
Is determined by such a multitude of cir
cumstances, bearing such complex rela-
tons TO each other, Influenced by supply
and demand, utility. adaptability, human
desire and other causes without number,
that exchanges of property can easily be
effected only by the common use of va
riety Of media of exchange, each represent
ing accurately the units of value as meas
ured BY the standard into which il can be
converted on demand. Voluntary and uni
versal exchange in cOppers, nickles, silver
and gold, bank notes, greenbacks and GER
tifcates mark the true test of standard
into which each can be converted with
ease.
Law does not create this condition. 1t
merely recognizes it, and operates as a
check agains its disturbance. All efforts to
effect by law a standard through any diff
ferent principle than this have been futile,
and the laws of trade and commerce, indif-
ferent to statute law, have universally and
consistently recognized as the standard
that metal, the intrinsic value of which
has been most stable and most free from
fluctuations. The immutable laws OF trade
which control such condition suffer no
more by a statute than an effort to change
the tides by royal edict.
HISTORY OF OUR STANDARD.
1.-THE first effort in this country toward
establishing a monetary standard was in
1886, when the Congress of the confedera-
ton chose as the unit of value the Span
ish milled dollar containing 1854 grains
Of pure silver. There was then no mint
in the United States and the 'milled dollar
was never coined in America
1.-THE first coinage law under the Re-
public was enacted April 2. 1892, and sought
to establish double standard of gold and
silver at ratio OF to Is. Whatever the
result Of the operation of the law and the
failure OF the two metals to maintain the
relative values fixed by statute, neverthe-
less 1t is quite clear that it was the intent
and purpose of the lawmaking power to
provide and legalize a double standard of
value. The subsequent act of June Is,
1884, changing the ratio from l to Is TO
to Is by reducing the weight of the eagle
from go grains to 25S grains was in the
hope of maintaining the double standard
by regulating the ratio to conform TO the
commercial values of the metals.
LESS than three years thereafter, by the
act of Jan. Is, 1897 which changed the
ratio from 1 to 16 to 1 to 15.9SS by again
modifying the quantity OF metal in the
coins, the effort to maintain the double
standard was apparent. The remarkable
discovery of gold in California in 1SH and
1S4S and in Australia In 1851 had a material
influence upon the relative value of gold
and silver, and the bullion in the silver
coins of the United States increased in
value beyond the value noted by their face.
This condition bore fruit in the act OF
Feb q. 1853, which provided for the reduc-
ton of the amount of metal in the silver
half dollar, quarter and dime and pro-
hibited the further coinage of subsidiary
silver coins except upon government ac-
count. The bullion value of a silver dollar
prior to 1853, and indeed prior to 1873, was
the great proportion of the time in excess
of the face value, and comparatively few
were coined. The difference between the
bullion and face value of silver coin ac-
counted for their withdrawal from the
channels of trade as medium of exchange
and their conversion into commodities
regulated in value by the laws governing
trade and commerce, irrespective of the
statute making provision for their circula-
ton as money at fixed valuations. The
necessity for small change created the de-
mand for the half dollars, quarters and
dimes, which remained In circulation be-
cause the bullion was reduced and cir
culated at par because of the guarantee of
the government. By the provision OF the
law these subdivisions of the dollar were
paid out at the mint in exchange for golo
coins at par and there has never been
a doubt but that their redemption would
be equally at par. The struggle of the
government TO maintain the double stand
ard by law continued for nearly sixty
years. The shifting of the ratio between
the two metals was met by the change or
statute. The universal experience in bust
ness transactions marked the withdrawal
from circulation Of the undervalued coin.
1.-The debates in Congress just prior to
the passage of the act of Feb Il, 1858,
clearly mark the change of sentiment
against the further effort to maintain a
upon the floor of the House that in prac-
tice the gold standard was in force, and
that 1t was the clear purpose of the gov
eminent to accept the single gold stand
ard. While no statute was made to this
end, the operations of the laws of trade
gave recognition to this basis of values.
No effort was made to change this senti-
ment. and for twenty years the question
Of coinage commanded but little attention
by the American people The struggle or
the government through the civil war Grip
pied the credit of the Republic, and for a
time specie payments were suspended and
the government degenerated to a paper
basis.
DAWN OF A NEW DAY.
1.-The Act of March Is, 1869, To strengthen
the public credit pledged the government
to the payment of it's demand notes and
obligations in coin. This was the dawn Of
a new day in American finance, and
marked the resurrection of government
credit from the abyss into which 1t had
fallen. The only coin in circulation at the
time of the passage OF the Act OF March
is, 1869. was gold. The subsequent provis-
ion for the redemption of the demand notes
and the universal policy of the government
to make redemption in the best coin known
at the time of the redemption, demon
StrdteS DeyOnu uOuDt, tldt tHlS pleuSe Oh
the government has been faithfully kept
1t was but a short step, in principle as
we'll as in time. to the provision in the
Act of July IA, 1870, TO authorize the re-
funding of the national debt which made
the bonds of that issue 'redeemable in coin
at the present standard of value
1.-The steps approaching the adoption of
the gold standard became short and rapid.
For five years prior to 1S13 the question
of legaliZing the gold standard was under
discussion in financial circles. AS early as
the winter of 1863 a bill was prepared in
the Treasury Department, containing pro-
vision for the discontinuance of the COIN
age of the silver dollar, and the adoption
of the gold dollar piece, at the standard
weight of twenty-five and eight-tenths
grains, as the unit of value. This proposed
measure was widely circulated among eX-
perts in finance, whose suggestions and
criticisms were invited. On April 25 1870,
this Bill, as 5. 49, was introduced, and on
Dec. 10 following was favorably reported.
From the date of its preparation. in all of
its forms, and throughout it's discussions.
covering several sessions, the provisions
aforementioned remained intact. Not
only that, but these two provisions were
the only provisions relative to the stand
ard of value, and the silver dollar, ever
contained in the bill. either as ii was orig
inally drawn. or. throughout its entire con-
sideration. The old standard silver dollar
was never mentioned in the bill. The bill
became law Feb. L, 1873. For more than
a quarter of a century preceding that date,
the commercial world had treated gold as
the standard of measurement of values.
The Act of 1873 was merely the policy and
practice of our people, crystalliZed into
statute law. The change from the unwrit-
ten to the written law was simple. and I'M
attended by the slightest disturbance in
trade.