The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-06

commercial level of the respective metals
fixed by competition In the great mar
kets.
WHAT HAMILTON SAID.
1t is well TO recall another observation
made by Hamilton in respect OF the COM
parative stability of gold and silver. He
said: Gold may. perhaps, In certain
senses. be said to have greater stability
than silver. as, being of superior value,
less liberties have been taken with 1t in
the regulations OF different countries. Its
standard has remained more uniform, and
it has in other respects undergone fewer
changes, as, being not so much an article
of merchandise. owing to the use made of
silver in the trade with the East Indies
and China, IL is less liable TO be Influenced
by circumstances of commercial demand.
And If, reasoning by analogy, IL could be
affirmed that there is a physical probable
ity Of greater proportional increase in the
quantity of silver than I'm that of gold. il
would afford an additional reason for cal
culating OF greater steadiness in the value
OF the latter"
And further: LAS long as gold, either
from its intrinsic superiority as a metal,
from its greater rarity, or from the preJu-
dices of mankind. retains so considerable
a pre-eminence III value over silver as IL
has hitherto had, natural consequence OF
this seems to be that its condition will be
more stationary. The revolutions. there
alive value of gold and silver will be
changes in the state OF the latter FATHER
than that of the former
In the light of subsequent experience the
utterances of Hamilton were prophetic.
Revolutions have occurred. and the ratio
OF silver to gold, which was approximate ly
IS TO l in 1892. was 1850 to 1 in 1894, and is
3l9 to / to-day While he did not regard
t. 4. a.
exclusively to either of the metals, yet nc
would make the proportion between the
two at the minis correspond to that winch
existed in the markets.
With all the care taken by Hamilton to
have the minting conform to the market
ratio. thereby securing the concurrent use
and circulation of both metals, gold was
Undervalued and avoided the minis. Why
was this, IL free coinage alone will raise
the cheaper metal to an equivalency with
the dearer? IL the present arguments
advanced by the learned and able advo-
Gates of free coinage are well founded,
the effect of free coinage under the law
of 1872 should have been to preserve the
commercial ratio of the two metals SO
that the market and minting ratios would
always be the same
The ratio determined by Hamilton and
Jefferson continued unchanged until in
1894. when IL was altered to 1902 to l. IL
may be well to consider. without a too
minute inquiry. how this ratio came to be
most cursory examination of the discus
sion leading up to the act of 1884 will dis
close the fact that the ratio then chosen
was adopted because il was supposed TO
of the two metals Silver had either de-
preciated or gold was appreciated. so that
Is to 1 no longer measured their relative
value.
THE ACT OF 1887.
The act of 1887 did not affect the amount
Of hr,t ha n
the alloy ir the silver coins and added
slightly to the weight of the gold in the
gold coins. so that the coinage value be-
came 1888 to 1. or popularity speaking, 16
TO /, the purpose being to so nicely adjust
the minting value of the coins to pre-
serve their concurrent use and increase the
metallic monetary stock of the country.
But with all the care that was exercised
silver was undervalued and practically
ceased to circulate except as subsidiary
coin. 1t increased i'm value until 1873. when
it was some 3 per cent. above gold.
If the argument of our free-silver friends
is sound, why did not free coinage be-
tween 1894 and 1873 raise the value of gold.
the cheaper metal as compared with silver,
up to a parity with the latter? In short.
why did not free coinage bridge the mar
row divergence of per cent. and hold the
two metals at an absolute equality?
GUM, Italy, Switzerland and Greece for the
maintenance of the double standard was
forced TO suspend the free coinage or sill
yer because of the great decline in the
value of that metal. We have here an ex-
perience similar to our own. and that Is.
that free coinage alone by the great Latin
Union failed to arrest the decline OF sill
yer.
and silver to parity with each other from
1892 to 1884. when the difference between
them was about IL per cent, and further,
IL ii was impossible to bring the metals
to a parity with each other under the new
ratio from 1894 to 1873, with a maximum
difference between them of per cent, how
can 1t be supposed that free coinage to-
day would bring them to an equivalency
and keep them there, when there is a diff
ference between them of So per cnt- on the
dollar? Sir, our friends set before us an
impossible task.
The free coinage of silver now pro-
posed with all the minis of Europe closed
TO free coinage. would not result in rails
ing the great mass of silver in the United
States and throughout the world up to and
retaining Ii at a parity with gold. The ef-
fort to accomplish this feat would have
enc chief result, and that would be to
drive out of circulation every dollar of
gold in the United States.
BLAINES WARNING.
Mr.. Blaine. who, in this chamber, In 1878,
advocated the free coinage of gold and sill
yer. at their market ratio, however,
sounded a note of warning against coin
age at an arbitrary ratio, and showed,
with the lucidity of statement of which he
was master, the evil results of silver
recommendation.
Evidently" said he, ''the first dictate of
prudence is to coin such dollar will not
only do justice among our citizens at home
but will prove a protection-an absolute
acknowledgements the gold monometallists
of Europe, who, whenever the opportunity
offers, will quickly draw from us the one
hundred and sixty millions OF gold coin
which We now hold. IL we coin silver dol
lar or full legal-tender. we are simply open
ing our doors and inviting Europe to take
our gold. With our gold flowing out from
shall be forced TO the single silver
standard and our relations with the leading
commercial countries of the world will not
only be embarrassed, but crippled
The maintenance OF the gold standard is
not inconsistent with the use of silver as
currency. In fact, ii insures its very large
use and upon terms of practical equality
with gold itself. While il is not a money
of ultimate redemption. it is accepted as
equivalent to such m cffecting the manifold
exchanges among the people.
So long as silver currency is maintained
at parity with gold the people will accept
ii in payment of their gold obligations with
out doubt or question. and in every re-
spect as freely and willingly as they will
accept gold itself.
The extraordinary demand on the Treas
ury i'm 1893 1894 and 1895 for gold was largely
stimulated. except where gold was required
for the discharge of international balances.