Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-10-25

near 16 that the ratio is commonly
said to be 16 to /. The relative con-
tents of our gold and silver coins were
fixed as they are because when the act
was passed these weights were believ-
ed to give equal values, This was
done in 1884. 1t soon developed, how
ever, that either the silver coin was
over-valued in the act, or silver i'm
mediately afterward advanced in value
in the markets of the world, for our sill
yer coins became worth slightly above
their face value and were melted down
and sold abroad as bullion. This condi-
ton lasted for more than 80 years and
existed when the silver dollar was
dropped from our list of silver coins,
in 1873. Shortly after the latter date,
silver begain to decline and the pres
ent value of 371A grains of silver Is
now under SO cents.
To reopen the mints now at the old
ratio, as tho the decline had never
occurred, would be contrary to the
principles upon which the coinage ra-
ito was originally established, and in
view of the past experience of this and
other countries. it must be assumed,
would result in expelling our gold from
SAi tlhu EiN ms I'D pAlNSl why
for our metallic money. AS about one
half of all the money in the country
is gold, the result upon the business
traction would inevitably be disas-
trous. In time the vacancy in the cir
culation would be supplied by silver
coming from all parts of the world, but
it would require several years to COM
nj orr hn f,.a1 ,csf low f,,N,, rro1I 10 4.
silver basis and they would be years
OIL paralysis and distress. When the
equilibrium was regained it would be
with new scale of values. Wages
and prices would have to adjust anew
their relations and, as commodities
are influenced by world prices, they
would reach the new level first. and
wage-earners would lie under a disad-
vantage.
Under such policy, any one who
had BIN grains of silver could take
it to the United States mint and have
it coined into dollar and returned to
him for his private use and benefit.
All debts and obligations of every
character, calling for dollars, could be
legally discharged in the new dollars.
Bank depositors, the holders Of life in
surance policies, lenders of money, and
wage earners would all fare alike.
lnasmuch as every important nation
in the world, except China and Mexico
has adopted the gold standard the
United States, by leaving it, would
isolate itself in trade relations from
its chief customers.
The nations which have common
standard of value have a broad ana
stable basis for mutual trade. Their
currencies bear such relations to each
other that the variations between them
can never exceed the cost of shipping
gold. The value of a certain sum in
the money of one country can always
be calculated in the money of another.
Our statesmen are now in all parts of
the world quoting prices and persuad-
ing buyers. Every risk that they lie
under which does not also lie against
their competitors tends to reduce their
profits or exclude them from the mar
ket.
The Mexican dollar last year had a
range of six per cent as compared
with all the money of all gold standard
countries, and all the international
| transactions of that country were In
volved in its fluctuations. =
The Mexican dollar has had range
of three per cent in the last three
months. With -four at SIS per barrel,
If an American mill with capacity Of
1000 barrels per day had contract in
Liverpool, or Hamburg, for future de-
| livery, a fluctuation of three per cent
in the value of our currency to gold
would make a difference to that mill
of $3.50 dollars day. We cannot hope
to become great industrial or COM
mercial nation with such handicap as
that.
Whatever ground there may have
once been for the claim that the sup
ply of gold was inadequate, has been
removed by the rapid increase in gold
production in recent years. The total
productions of gold and silver in 1878,
valuing silver at 16 to 1, was about
$17S,000,000.
In 1899 the total production of gold
alone, was about $315, 000,000 and bur
for the war in the Transvaal, would
have reached $340,000,000.
With all fields increasing their out.
puts, the production of gold alone, next
year, will doubtless equal twice the
output of both gold and silver in the
year 1873.
In view of this fact, it would seem to
be clear that there is no prospect for
a dearth of money and hence no posi-
BILE warrant for such arrangement OF
business relations, such far-reachins
injustice, and such a commercial con
vulsion as the opening of the minis to
the free coinage of silver at 16 to
would involve.
A BLADENsRURG SOCIAL EVENT
Miss Ella LeeIing Gave a Ball Satur