The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-08-12
FIXED PRICE OF SILVER
RATIO WITH GOLD 20 TO |
BlMETALLlSM is AN ACCOM-
PLlSHED FACT AND HAS
COME TO STAY.

How much better IT is to act than
to argue was illustrated by Senator
Pittman when he quietly put through
the legislation under which American
silver is now selling at the fixed price
of dollar an ounce, a condition which
will probably last for four years or
so under the existing act. The gov
eminent mints viii buy gold at S2O67
and silver at 81; and fixed ratio is
established after many years OF the
single standard. a ratio of 20 to 1. The
silver so bought will be minted into
coins or placed in the treasury vaults
as a reserve against the silver certifi-
Gates, outstanding or to be issued.
Silver is, therefore remonetized, and
all American silver will be turned in
to currency. The silver that goes in
to the arts will be foreign silver, pur-
chased on account of its cheaper price
in the New York market Should the
world price of silver go above a dollar
our government would automatically
cease to buy, for none would be offer
ed it; but at any fan below a dollar
domestic producers could take advant-
age of the government fixed price, says
the Engineering and Mining journal.
Government price-hXing in general is
artificial and injurious. as the war
experience demonstrated. But one
thing must be fixed-a standard on
which all other prices are calculated.
Hence the inevitable fixed price of
gold But silver is also a necessary
currency metal; its principal use is as
a medium of exchange. Hence, the
fixing Of its price appears proper.
In view of the political and forensic
war that has been waged over the
question of bimetallism. the fixed sill
yer ratio. and free coinage of silver
no deliberate presentation of a propo-
sition to again fix ratio in this coun-
try would have been listened to for a
moment But the thing is done.
Other Nations May Follow.
Is there anything but benefit i'm il?
We are of the opinion that other ma
tions would do well to follow suit
France has suffered the loss of most
of her silver coins because they were
worth more as bullion, for the use of
the arts. Most countries are so poor
in gold that their financial systems
are shaky and the restoration of eX-
change rates is one OF the worlds
principal problems. Meantime the
operation of gold mines is becoming
more and more difficult and the pro-
duction of gold ever less. The firm
knowledge that all of our silver, as
t.a1 oil Of t,,.l
back of currency and bonds would
help this country and the same prin-
cple would help the world more than
us.
Silver a Stabilizer.
The system is working with us now.
We viii not call it bimetallsm. or any
other word by which it was formerly
discussed. Words are more obnoxious
and more fatal. than ideas But we
actually have gold standard sup
ported by silver currency at a fixed
ratio to the gold. All the single stan-
dard opponents of the stability of our
national system of currency point out
that the silver notes are sound. being
secured, dollar for dollar by silver
deposited in the treasury; thereby
acknowledging silver as a basis of ex-
change. We have the system in prac-
tice. then. Is there anything injurious
about it? We shall have plenty of op-
portunity to study it during the next
four years; for although some of the
theorists who wake up to the fact that
something has been put over on
them are clamoring for repeal, the
act will not be repealed. as there is I
no sensible reason for doing SO. We .
shall find it to be stabiizer, rather .
than a disurber; and at the expira-
ton of the period provided for in the .
Pittman act we assume that Senator .
Pittman will move for an extension of /
the fixed price.