Perth Amboy evening news., 1923-02-02
VALUE OF GOLD AND SILVER
TOLD OF BY HASKIN
Daily Letter by Frederic j.. Haskin

tStry and Sucn uses WOulu AdH0 ~
pay about 10 per cent over ana
above it's own standard value OIL
s2O.67 for $20.67 worth. Out of the
fund amassed through collection OF
this tax the government would pay
q bounty to the producers of gold.
A miner producing $2O.67 worth OF
gold would receive from the govern
ment about $22.72 for it.
A committee of experts appointed
ny the treasury AMI a committee ap-
pointed by the American Bankers
Association, have 10th advised
against such a plan. They declare
in the first place that it is unwise
TO tamper in any way with the gold
standard of value. The period OF
high production costs will be tenn
porary, they say, and therefore, II
will be better TO let economic forces
take their course and come back tc
| formal in their own good time, un-
molested. The principal reason,
however, why these experts have not
been kindly disposed toward the
gold bounty plan is that they point
out the United States has been get
ting imports of gold IS the results
CT it's favorable trade balance faster
than gold ever was Or could be pro-
duced from the ground and that
therefore, there is no occasion to
worry about production.
This is where the case stands now
and it does not seem likely that any
gold bounty will be enacted at this
session of congress, but the pending
proposal shows how even so stable
and solid a thing as gold can be up
set by great huma44 conflicts.
Senator Nicholson of Colorado has
t-A.1l,oA5 n -aCnIrItSnn hnxUinp thai
as much concern is being felt over
silver as over GOLD. His resolution
provides for the appointment OF g
federal commission which would
study the subject of tIe decline III
| the use of silver as a material foi
coinage, not only n this country, but
abroad.
B~i-metallism Again
This project is OF special interest,"
as being calculated to raise anew the
| old issue of bi-metallism. Bi-met'
altsm is the doctrine Of having
a double system of money composed
of gold and silver. Both are stand
ard, under this system, their pro
portionate values TO each being tixeC
Ly legislation. The proponents o.
bi-metallism declare that the system
has a great advantage in that q
| double standard, with two measures
hooked up together, is more likel,
to remain stable in the face of sucf
economic ravages as war, than a sin
gle standard.
The tricks the war has DlayeG
with gold have tended to strengthen
their position. Bi-metallism wa.
espoused in times past by the Demo
cratic party. William Jenning
Bryan was preaching bi-metallisn
when he strove for the free and un
limited coinage of silver. iSor unit
1904 did the democratic party with
draw this from it's party platform.
The objection has been that sue
"a double standard would ~cheapei
both gold and silver and produc
am inferior and unreliable coinag
and currency. Practically every ma
ton in the world has abandoned tn
idea and chung to the gold STANDARD
at least theoretically.
senator Nicholson points out tina
the use of silver, wen as a subsidiar
coinage, has decreased measurabl
since the war and that h dimtI
j;ahed consumption has embarrasse
the producers of silver. He point
out that not only has paper none
Ibeen largely substituted for silve
| coinage Out bildt lho SAAVSA ~NASN
OF coins has been decreased.
Silver, normally, does not have
fixed price, like gold. As an emei
eency measure, during the war, cor
gress fixed a price of 81 per ounc
for silver, but this was intended a
la temporary war measure. tn
Irice of silver in Europe has recent
ly been around 20 cents. Before tn
war the price was only 80 cents pc
ounce. There is an ounce OF etlve
In an American silver dollar.
The proposed commission woul
seek to have the use of silver &c
coinage increased and also woul
seek to have the value stabilized
An international conference to brtn
this about is proposed.
1t is certain that this winter an
at the coming sessions of congreS
the question of the value of bot
gold and silver will continue to /
discussed with the possible resu
that some legislative enactment wi
be made.
It is true that paper money hs
been displacing gold and silver tn
world over. The sight of gold an
Silver coins is becoming unfamilia
lThis could not be better illustrate
than by the story of the little 81
who received a S. gold piece rs