New-York tribune., 1900-08-25


cided to follow the then universal practice. and
try the double standard, so they authorized the
minting of both silver and gold at the existing
commercial ratio OF 10 to 1. They did not go
back to the ratio of five centuries before 60 to D.
or to any Of the varying ratios Of the interven-
ing centuries, nor did they try to anticipate any
ratio that might be reached in the future. They
simply accepted the commercial ratio of the
year 1892, and went to work to coin money at
that ratio. They enacted a law declaring that
an eagle-this is the order in which the metals
are mentioned in the law-should consist of
24I12 grains Of pure gold and 2215 grains OF
alloy and that dollar should consist of 371A
grains OF pure silver and AK grains Of alley.
Thus came into existence the dollar OF our
daddies."
THE DOUBLE STANDARD FAILS TO WORK.
From the very first the double standard
scheme, enacted in statute law failed to
work; though not with Gresham's law The
latter continued TO do business at the old stand
The coinage Of gold and silver was begun.
Eagles. hax eagles, quarter eagles and dollars
were turned out from the mints only to dis
appear from circulation. the gold to Europe or
into private hoards the silver to Cuba Why?
The silver disappeared from circulation because
Congress, in the exercise Of the powers vested
IN 1t by the Constitution to regulate the value
of foreign coins, had said that Spanish milled
dollar Of not less weight than II pennyweights
and grains should pass current as and be a
legal tender for a dollar. The Spanish milled
dollars on which this enactment was based were
the old coins actually in circulation here and
were lighter in weight than new Spanish dol
lars. It happened that the new American
silver dollar passed current in Cuba as freely
as new Spanish dollars, which actually
tanned more bullion. People soon found that
they could send 100 American dollars to Cuba
and get 100 Spanish dollars for them. and have
the Spanish dollars melted and recoined at our
mint into 101 American dollars, making profit
of 81 on the transaction. This kept Amer
lean silver dollars out of circulation, and in
1905 the mint ceased their coinage by order of
President Jefferson. The gold remained IN cir
culation for time. but in 1910 the CONNER
cial ratio had changed, and IT was more valu-
able bullion than money. Our coinage
ratio Is to 1; the commercial ratio was
1872 to 1. In this country q person who owned
one ounce Of gold-whether in coin or bullion
made no difference, for it should always be
borne in mind that the coinage Of a metal never
affects its real value either way the
other-could exchange 1t at the mint for fifteen
ounces Of silver. BY sending 1t to Europe he
could get fifteen and one-half ounces Of silver
for it. OF course he took his gold to the market
where he could get the most Tor IT.
THE RATIO CHANGED.
The net result OF these operations was that |
by 1917 neither eagles dollars remained IN
the country. Both had been driven out by the |
operations Of Gresham's law. and the country |
was left with only Spanish milIed dollars and |
other light foreign silver coins for use money.
Finally, when this state Of things became longer
Congress changed the ratio in 1884 |
by reducing the amount of gold in an eagle to |
232 grains Of pure gold and 26 grains of |
alloy, and in 1887 the weight OF a silver dollar |
was reduced to 4121a grains OF standard silver. |
making the ratio approximately 16 to 1.
The result was just as inevitable in this case |
as it had been before. Again Gresham's law |
operated. but the tables were turned. The |
coinage ratio in Europe generally 151a to 1. !
and here it practically 16 to 1. Gold was |
worth more for coming purposes here than in
Europe. A man with one ounce of gold could |
get sixteen ounces of silver for It here. In |
Europe he could get only fifteen and one-half |
ounces Of silver for it. Gold again appeared |
In circulation here where it had not circulated |
for years. and what silver coins got through |
the mint in their turn took wings and fitted |
off to Europe. Thus the country remained with |
gold as the sole circulating metal-barring. STILL
the lightweight foreign silver subsidiary coins,
pension Of specie payment in 1862. during the
Civil war. The gold standard had been prac-
ticaIly established.
THE DOUBLE STANDARD IN EUROPE.
Meanwhile Europe having her own
troubles with money. In England the coinage |
ratio was ID II to l and England had the |
same trouble with silver that we were having; |
the fullweight coins fed to the Continent and |
only lightweight silver remained in circulation. |
AS Englands commerce increased, this caused |
increasing annoyance and inconvenience and |
in 1774 a temporary experimental law was |
passed limiting the legal tender quality Of silver
coins by tale to EOS. This law worked so well |
that it was re-enacted from time to time, until |
1893 when the British mint was closed to free |
silver coinage. ana the act of 1874 made |
perpetual. Finally, in 1916, the whole British |
system was recast the single gold !
standard basis and since then England has !
had no trouble with her money system. On the |
Continent the situation was similar. France |
had coinage ratio of 1512 to l, and lost her |
gold and silver alternately as the real ratio |
varied. Germany single silver standard |
nation and could only keep lightweight foreign |
gold coins in circulation. Other nations had |
similar experiences and gradually, one by one,
they followed the lead Of England and the |
United States and closed their mints to the
free coinage Of silver. A partial list in
cludes England, the United States Germany
France, Austria, Sweden, Norway, Denmark,
Russia, Japan Peru. Chilli, Turkey and Por-
tugal: in fact, all the principal commercial ma
tions of the world. The silver say this !
change was dictated by England and
the money power Common sense says 1t was
dictated by natural laws and enlightened self