New-York tribune., 1900-11-03
THE EFFECT OF FREE COINAGE.
A BOSTON BANKER PREDICTS A SHRINK
AGE OF THE PURCHASING POWER
OLA DOLLAR TO 4s1s CENTS.

To the Editor Of The Tribune.
Sir: Free coinage of silver at 16 to l is de-
manded by the three party platforms upon which
Mr.. Bryan stands. and Mr.. Bryan says that he
will get rid Of the gold standard II he is elected.
The Democratic platform OF 1896 and Mr.. Bryan
also in his famous speech at Chicago declared this
to be the paramount issue 1t Is paramount. The
reelection of President Mckinley assures the
maintenance Of the gold standard and the progress
OF prosperity upon which we have entered
election of Mr.. Bryan would forecast the estap-
lishment of free silver coinage, lich "ouu desrdue
US TO the silver basis.
This catastrophe might not be complete until
new laws should be enacted by this incoming Con-
gress but in some degree we should experience the
effects Immediately after the election or MI Bryan
should be assured fact
Government notes redeemable in coin would be
sought for and presented to the United States
Treasury for payment
There was In the Treasury on October l;
gold coin and bullion $490090SS $00S
reserve fund, gold coin and buion... 1'"OoooOO
Total Observation-Disclosures $3.50 oOoo 900
There were notes in circulation. redeemable in
gold, as follows:
Trsa,pTv notes Of 1880 ............... Os.OooOoO
Total $oo-U'VV'V
How freely or how long the Treasury would be
able to pay gold for notes presented the event only
can determine. Certain 1t is that there would be
a premium upon these demand notes and for Sold
and a premium would cause their wlthdrawal from
currency and banks would suspend gold payments
The withdrawal from circulation of fraction even
of the $500 10000 notes would cause stringency
and a panic The impending evil OF the silver basis
would begin be felt. Until March 4. 1901 there
would be premium upon gold something less imam
1CO per cent paper currency. Later II the
rniuts were opened to free coinage or silver the
premium upon gold would be 100 per cent, and We
should be a silver basis, like Mexico.
Ever since 1884 have been the gold stand
ard. silver dollars and paper money being main
tained at parity by law. or by redemption with
gold Our dollar is now equivalent to four shillings
and twopence. English money. Our S6COOVo'Coo Sill
yer dollars, coined on Government account are by
parity worth each four shings and twopence
sterling but decree by law that either 42la grains
of standard SILVER or o5S grains OF standard gold
shall be freely coined and legal tender, and the
silver dollar being the cheaper, becomes our unit
or basis. and as Il2lt grains of coin silver are
worth about 4Sle cents, our dollar would be worth
only two shillings and pound sterling would cost
$40.
At the Democratic Convention at Chicago july Q.
1885, the minority report of sixteen members of the
Committee on Resolutions declared their belief
that the experiment on the part of the United
alone OF free coinage would place this coun-
try upon silver basis impair contracts.
disturb business, diminish the purchasing power of
wages OF labor and infct irreparable evils upon
our Nations commerce and industry" They were
right
Mr. Bryan. in his speech of acceptance of the
nomination in 1896. said
We contend that free and unlimited coinage by
the United States alone will raise the bullion value
OF silver the coinage value and thus make silver
bullion worth 81 % per ounce in gold throughout
the world; aSo those who deny the ability of the
United States TO maintain the parity between gold
and silver at the present legal ratio without for
eign aid point to Mexico and assert that the OPEN
ing of our mints will reduce us to silver basis
and raise gold to "A premium. II is reflection
upon our sister republic 70 remind people that
the United States is much greater than Mexico in
area in population and In commercial strength.
1t is absurd TO state that the United States s not
able to do anything which Mexico has failed 10 ac-
complish
Mr. Bryan is ignorant OF the real operation OF
the opening of the mints to free coinage. There
would be no nducement to send silver for coinage
except the convenience OF the mine owners be-
cause coinage would not increase its value. The
United States dollar would be worth only the COM
mercia value of the silver which 1t contained.
l quote also from Mr.. Bryan's published speech
in Congress against the repeal OF the purchasing
clause of the Sherman act November l. 1894;
Let us admit that the mine owner is selfish and
that he will profit by the Increased price of silver
bullion Is II important that you should keep
a mercantile house from falling than that you
should keep mine from suspending?
e thus points out the real nstigators OF the cru
sade for free coinage OF silver begun in 1876. and
never let up since. The millionaire mine owners Of