Year: 1878

!


The market value Of the silver in tn,
dollar, at the date of the passage Ct ths
act, was 934 cents in gold coin. Nov
it is about Sc cents in gold coin. If i
was intended by Congress to adopt the
silver instead of the gold standard, the
amount provided for is totally made


quate for the purpose. Experience, not


only in this country, but IN European


countries, has established that certain


amount of silver coin may be main


tanned in circulation at par with gold,
though of less intrinsic bullion value.


It was. no doubt, the intention of Con-


gress to provide coin in silver which
. would answer a multitude of the pur-
poses Of business life without banishine
/ from circulation the established gold
coin of the country. Toaccomplish this
it is indispensable either that the silver
coin be limited IN amount, or that its
bullion value be equal TO that of the
gold dollar. If not, It's use will be lin
tied to domestic purposes. 1t cannot be
exported except at its commercial value
as bullion. If issued in excess of de-
mands for domestic purposes it will ne
! cessariiy fall In market value. Gold
will be either boarded or exported.
When Two currencies, both legal, are au-
thorized without limit, the cheaper alone
will circulate. If, however, the issue of
the silver dollar is limited to an amount
demanded for circulation, there will be
no depreciation, and their convenient
use viii keep them at par with gold, as
fractional silver coin, issued under the
act approved Feb. q; 1853, was kept at
par with gold.


The amount of such coin that can
thus be maintained at par with gold can
not be fairly tested until resumption is
accomplished. As yet paper money has
been deprecated, and silver dollars,
being receivable for customs dues, have
naturally notNentered into general circu-
lation, but have returned to the teasury
| in payment of such dues, and thus the
only effect of the attempt of the depart
ment to circulate them has been to di-
minish the gold revenue. After re-
/ SIAIDtlOn IlICoC IOlllo " III CllSalotC LII
considerable sums for small payments.
| To the extent that such demand will
| give employment to silver dollars their
use will be an aid to resumption rather
than hindrsnce, but if issued in excess
of such demand they will at once tend
to displace gold and become the sole
standard, and gradually, as they increase
in number, will fall in their value as
bullion. Even the fear or suspicion of
such an excess tends to Danish gold,
and, if we'll established, will cause a
continuous drain of gold until impera-
tive necessity will compel resumption of
silver alone The serious effects of such
a radical change in our standards of
value cannot be exaggerated; and its
| possibility will greatly disturb confidence
in resumption, and may make necessary
| larger reserves and further sales of
bonds


| The Secretary, therefore, earnestly in
vokes the attention of congress to this
subject, with view that either during
/ the present or next session the amount
of silver dollars to be issued be limited,
or their ratio to gold for coming pur-
poses be changed.


Gold and silver have varied in value
from time to time in the history of ma
| tions, and laws have been passed to meet
| this changing value. In our country by
the act of April 2, 1892, the ratio be-
tween them was fixed at one of gold to
fifteen of silver. By the act of June
%, 1884, the ratio was changed to one of
gold to sixteen of silver For more
than century the market value of the
two metals varied between these two ra-
tios, mainly resting at that fixed by the
/ Latin nations, of one to fifteen and a
half.


But we cannot overlook the fact that
within few years, from causes fire.
quently discussed in Congress, great
! change has occurred in the relative value
of the two metals. 1t would seem to be
expedient to recognize this controlling
fact-one that no nation alone can
change by careful readjustment of
the ratio for coinage of one to sixteen,
so as to conform to the relative market
values of the two metals. The ratios
heretofore fixed were always made with
| that view, and when made, did conform
as near as might be. Now, that produc-
tion and use Of the two metals have
greatly changed in relative value, cores
ponding change must be made in the
| coinage ratio. There is no peculiar
force or sanction in the present ratio
that should make us hesitate to adopt
lanother. when in the markets of the
world, it is proven that such ratio is
not now the true one. The addition of
one-tenth or one-eighth to the thickness
of the silver dollar would scarcely be
perceived as an inconvenience by the
holder but would inspire confidence, and
add greatly to its circulation. AS sprices
are now based on United States notesat
par with gold, no disturbance of values
would result from the change


/ It is respectfully submitted that the


United States, already SO largely inter
ested III trade with all parts Of the
world, and becoming, By its population,


wealth, commerce, and productions, a
leading member of the family of ma
tions, should not adopt standard of
less intrinsic value than other CONNER
cial nations. Alike interested in silver
and gold, as the great producing country
of both, it should coin them at such a


ratio and on such condition as will Sc
cure the largest use and circulation of
both metals without dislocating either.
Gold must necessarily be the standard
| of value In great transactions. from It's