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Editorial
August 28, 1896
The Mason County Journal
Shelton, Mason County, Washington
What is this article about?
Editorial answers queries on redeeming US silver dollars indirectly for gold via treasury notes, per 1893 act maintaining gold-silver parity. Explains free coinage of gold (with alloy charge) and proposed unlimited free silver coinage demanded by populists and democrats.
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OCR Quality
95%
Excellent
Full Text
Questions Answered.
"Does the United States redeem her silver dollars in gold? That is, can we take silver dollars and go to the Treasury and get gold for them?"
No, not directly; but it can be, and is, done indirectly. You can get silver dollars exchanged for treasury notes (not silver certificates;) and the treasury will give the gold for the treasury notes on demand.
This arises out of the provision of the act of November 1, 1893, which declares it to be "the policy of the United States," to maintain "the parity in value of the coins of the two metals, and the equal power of every dollar at all times in the markets and in payment of debts." The silver dollar is worth only about half as much as the gold dollar. How can they be held to a parity, unless we make the less valuable practically redeemable in the more valuable? Hence the above practice of the treasury.
"Are we to understand by the word 'free' that the United States mint will coin the metal free of charge to the party bringing the bullion, or must he pay a certain amount for doing the same, or will the amount of alloy pay the expense of it?
"Is the word 'unlimited to be taken in the sense that any one can bring it to the mint in quantities unlimited as to amount, or from any country?"
Gold has free coinage by the United States. Any one can take gold bullion to the mint and have it coined, at 23.22 grains of gold to each dollar. The mint charges 2 per cent for the alloy which it adds to the gold--the alloy being half silver and half copper, by weight.
Free coinage of silver would mean the same thing. There might be a charge to cover the cost of the copper alloy, or there might not be. That would depend upon the wording of the law. The populists and democrats demand that the coinage should be entirely free--that is, that the government shall meet all the expense of coinage.
The word "unlimited" means just what you think; that anybody can take any amount of silver to the mint and have it coined into standard dollars. There is to be no limit to the amount, it may come from any country on earth, and be brought by anybody, whether a citizen or an alien.
Pioneer Press.
"Does the United States redeem her silver dollars in gold? That is, can we take silver dollars and go to the Treasury and get gold for them?"
No, not directly; but it can be, and is, done indirectly. You can get silver dollars exchanged for treasury notes (not silver certificates;) and the treasury will give the gold for the treasury notes on demand.
This arises out of the provision of the act of November 1, 1893, which declares it to be "the policy of the United States," to maintain "the parity in value of the coins of the two metals, and the equal power of every dollar at all times in the markets and in payment of debts." The silver dollar is worth only about half as much as the gold dollar. How can they be held to a parity, unless we make the less valuable practically redeemable in the more valuable? Hence the above practice of the treasury.
"Are we to understand by the word 'free' that the United States mint will coin the metal free of charge to the party bringing the bullion, or must he pay a certain amount for doing the same, or will the amount of alloy pay the expense of it?
"Is the word 'unlimited to be taken in the sense that any one can bring it to the mint in quantities unlimited as to amount, or from any country?"
Gold has free coinage by the United States. Any one can take gold bullion to the mint and have it coined, at 23.22 grains of gold to each dollar. The mint charges 2 per cent for the alloy which it adds to the gold--the alloy being half silver and half copper, by weight.
Free coinage of silver would mean the same thing. There might be a charge to cover the cost of the copper alloy, or there might not be. That would depend upon the wording of the law. The populists and democrats demand that the coinage should be entirely free--that is, that the government shall meet all the expense of coinage.
The word "unlimited" means just what you think; that anybody can take any amount of silver to the mint and have it coined into standard dollars. There is to be no limit to the amount, it may come from any country on earth, and be brought by anybody, whether a citizen or an alien.
Pioneer Press.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Silver Redemption
Free Coinage
Gold Parity
Treasury Notes
Unlimited Minting
What entities or persons were involved?
United States Treasury
Populists
Democrats
Editorial Details
Primary Topic
Redemption Of Silver Dollars And Free Coinage Policies
Stance / Tone
Informative Explanation
Key Figures
United States Treasury
Populists
Democrats
Key Arguments
Silver Dollars Can Be Exchanged For Treasury Notes, Which Are Redeemable For Gold
Policy From Act Of November 1, 1893 Maintains Parity Between Gold And Silver Dollars
Gold Has Free Coinage With 2% Charge For Alloy
Free Silver Coinage Would Be Entirely Free As Demanded By Populists And Democrats
Unlimited Coinage Means Any Amount From Any Country By Anyone