Full text of The Money Question of the 51st Congress : Treasury Notes and Silver Bullion: How Shall We Secure the Concurrent Circulation of Both Gold and Silver as Money? : Speech of Hon. Joseph N. Dolph of Oregon, Debate in the Senate

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TREASURY NOTES AND SILVER BULLION.
How shall w e secure the concurrent circulation of both gold
and silver as money?

SPEECH
OF

HON. JOSEPH N. DOLPH,
OF OREGON,

IN THE

SENATE OP THE UNITED STATES,




M o n d a y , M a y 19, 1890.

WASHINGTON.
1890.




SPEECH
OF

H ON . J O S E P H N. D O L P H ,
On the bill (S. 2350) authorizing the issu e o f Treasury notes on deposits o f silre*
bullion.

Mr. DOLPH said:
Mr. P r e s i d e n t : I have neither the time nor the disposition to enter
upon an extended discussion as to the origin, character, and functions
o f money or to recount at length the history of the production, use,
and ratio of value o f gold and silver. These are all interesting topics;
topics involving questions, .which for several years I have studied as
opportunity offered, hut which, if a correct understanding of them is
necessary to intelligent action upon the propositions before us, have
already been sufficiently discussed by others.
We are confronted w ith practical questions of vital importance to
the business and material interests of the country, and what I shall
say w ill be directed mainly to what I suppose to be their object, scope,
and effect, with such brief reference to our own experience w ith <gold
and silver and the history of the legislation for the coinage and the
nse of the two metals as money in this and other countries as I con­
ceive w ill be instructive and w ill assist us in arriving at correct con­
clusions concerning the propositions before us.
I shall endeavor to consider these propositions w ith candor and
npon the assumption that all the members o f this body are equally
honest in their opinions and equally desirous of doing the best thing
for the interest of all the people of the United States.
I regret that upon several of the measures proposed I am not in ac­
cord w ith some of my colleagues from the Pacific coast. W hile I do
not pretend to be indifferent to the good opinions o f my associates
on this floor and o f my fellow-men in general and as a rule on political
questions do not hesitate to act with my party, sometimes accept­
ing the judgment o f the majority when my judgment is not entirely
in accord with theirs; still, upon a measure which I conceive to be
fraught w ith such grave consequences to the people of this country
as the measure now under consideration, if I should, for the purpose
of avoiding criticism or inconvenience to myself, fail to express my
honest convictions and to give my reasons for them, I should deem
m yself unworthy of the position I occupy in the national councils.
It is not my present purpose to inquire whether silver coin in sil­
ver countries—in the Indies, China, South America, and Mexico—
has depreciated, or, if so, whether there has been a corresponding
Change in the prices of commodities, or whether gold has appre­
ciated since the free coinage of silver was stopped Ijy Germany, the
Jiatin Union, and the United States,.
^It appears to me to be of little practical value to discuss the ques­
tion as to whether the fall in prices of all commodities in this coun­
try and in Europe within the last few years is attributable to the




4
rise of gold, the fall in the price of silver, or to the increased facili­
ties for production.
The ablest men who make it the business of their lives to stud^r
such questions are not agreed. The members of this body hold di­
verse opinions concerning them and no amount of discussion here or
elsewhere w ill reconcile these differences.
They do not admit of mathematical demonstration. My own opin­
ion is that the prevailing low prices for all commodities in this and
other countries has been caused by a combination of all the causes
mentioned; that the intrinsic value of gold has increased by reason
o f the increased demand for it for coinage purposes; th at the in­
trinsic value of silver as compared w ith commodities has decreased
by reason of the decreased demand for silver bullion for coinage pur­
poses and the increase of the supply; and that the fall m the prices
of all commodities is due in part to these causes and in part to the
multiplication of labor-saving machines, the increase o f great es­
tablishments for manufacturing purposes, and to overproduction in
almost every branch of industry.
But be this as it may, in my judgment, whatever the cause of tne
decline in the prices of commodities has been, it does not necessarily
affect the questions now demanding treatment at our hands. All
parties in this country are agreed that international bimetallism is
desirable; that it is necessary in order to secure to the world a suf­
ficient amount, of coin and to give the inhabitants of the civilized
world a stable currency, affected as little as possible by periodical
fluctuations in the yield of the precious metals'; that it is desirable
that mankind should have a single money, and not that four hun­
dred millions of people should have gold for a circulating medium
and two or three times that number should have silver alone, and
the value of each metal be left to be determined solely by the de­
mand and supply.
So far as I know there is not a member of this body who is not in
favor of the use of both gold and silver as money and of any meas­
ure which would, while securing a sound, safe, ahd sufficient circu­
lation, enhance the price o f silver bullion. Neither is it profitable
in my judgment to spend our time wrangling over the-causes which
have at any period in the world’s history fixed the ratio between the
values of gold and silver, and which has caused the extraordinary
decline during theJast seventeen years in the price o f silver.
It is a condition, and not a theory, that confronts us. Silver has
been demonetized by the principal countries of Europe. It has
steadily depreciated in value until 412£ grains of standard or 3?1£
grains of pure silver, at the date of the last annual report of the
Secretary of the Treasury, were wprth but 72 cents on the dollar in
gold of our coinage, and to-day are worth only about 81.2 cents on
the dollar, notwithstanding the late speculative rise of silver.
European nations are not ready to unite w ith the United States
in an agreement to open their mints to the free coinage o f silver at
an agreed ratio. International bimetallism at present is therefore
out of the question. National bimetallism at a ratio different from
the market value of bullion is chimerical. I f attempted it would be
a pretense; in fact, it would be silver monometallism.
It is idle to suppose that the United States alone by legislation
can fix the relative values of gold and silver for the world. The
question which faces us is, what shall we do with silver and gold ;
which standard shall we have ? Shall we stop the coinage of the
silver dollar ? Shall we so amend the Bland act so as to make the
purchase and coinage of $4,000,000 worth of silver per month com­
pulsory upon the Secretary of the Treasury ? Shall we repeal the
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provision o f the Bland act which requires the coinage of the silver
purchased under it either in connection w ith or without increased
purchases ? Shall we authorize the purchase of silver bullion at the
market rates and the issuing o f Government notes redeemable in
silver bullion at the market price at the date o f the redemption, or
shall we authorize the free coinage of silver f
These are the momentous questions w ith which we have to deal,
and whoever is to vote upon them should at least endeavor to do so
understandingly. I understand the measure under consideration to
be intended for the purpose, first and principally, of securing to the,
country an increase of the circulating medium which shall possess
the qualities and perform the functions o f money and, secondly and
'incidentally, for the purpose of enhancing the value of silver.
There are tw o policies concerning silver which have been advo­
cated on this floor, both of which are intended to secure an increased
demand for silver bullion in this country for coinage or for furnish­
ing the basis ©f a circulating medium in the form o f Government
notes. Under one may be grouped the plan proposed by the Secre­
tary o f the Treasury for the purchase of silver bullion and the issu­
ing of Government notes therefor receivable for public dues and re­
deemable in lawful money or silver bullion; the bill reported from
the Senate Committee on Finance to provide for the purchase o f
$4,500,000 worth of silver monthly and issue in payment for the
same Government notes, which shall be redeemable in lawful m oney;
the several amendments which have been proposed looking to the
retention of the.gold standard; the proposition to amend the Bland
act so as to require the compulsory purchase and coinage of $4,000,000
worth of silver bullion monthly, and all similar schemes. All these
proceed upon the theory that the value of the silver dollar and the
silver certificate is to be maintained at a par w ith gold by the.pro­
vision that they shall be received for public dues and be redeemed
in lawful money or bullion the equivalent of gold.
The’ other policy is free coinage of silver dollars containing 412£
grains of standard silver, with whatever divergence that may cause
between the value of gold and silver coin and with whatever changes
it may caqse in the prices o f commodities generally, the avowed
object being to obtain more and cheaper money and to make silver
the standard for the measurement of all values.
I at first saw objections to the plan of the Secretary o f the Treas­
ury to purchase silver bullion and issue certificates for the same,
which should be redeemable in silver bullic n at the market value at
the time of redemption. I believed that the redemption o f the
notes in silver bullion in connection w ith the requirement for the
purchase by the Secretary of a given amount of silver per month
might afford opportunity for speculation while the Government would
take the risk of loss by th 3 depreciation of silver bullion. But after
more mature reflection I am satisfied that the plan proposed by the
Secretary is open to fewer and less serious objections than any sub­
stitute for it which has been proposed, if the purpose of the legisla­
tion is to maintain the parity of the gold and the Bland dollar and to
keep both gold and silver coin in circulation in this country. The
measure proposed by the Senate committee, in my judgment, if
amended so as to make the Government notes to be issued under its
provisions a legal tender, would be a decided improvement oV'fer the
present law, if the purchase of silver under it to the maximum amount
provided in the act were made compulsory, as has been proposed.
1 have understood that the ihtention of the authors and principal
supporters of the bill reported from the Finance Committee is to
create an increased demand for silver and to provide an increased
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circulation upon the basis of the present standard o f values, which
is, in fact, a gold standard ; that it is expected and believed that,
notwithstanding the large increase in silver certificates and silver
coin which would take place if the bill became a law, the provision
for the receipt of the silver certificates and silver coin for public dues,
and if they shall be made a legal tender, the requirement that they
shall be received for private dues, and the fact that they are redeem­
able in coin—gold and silver coin—and the further fact that the gold
value of the certificates will be in the Treasury in the shape of silver
bullion, w ill have the effect to preserve the parity of the value of gold
and silver coin and certificates.
The fact that the face value of the notes, unless silver continues
to depreciate, w ill be iry the Treasury, in my judgment, w ill have
very little influence to create public confidence in the silver certifi­
cates. The certificates are to be redeemable in c o in ; that is, at the
option of the Secretary of the Treasury, in silver dollars, and their
issue will be, in effect, an increased issue of silver coin. There ought
to be no impression created which would induce the public to suppose
that any redemption w ill ever be made o f the certificates other than
that provided for in the bill, namely, in coin or lawful money, which
will be silver dollars, at the option of the Secretary of the Treasury.
Any bill, by which the United States becomes a purchaser o f fifty
odd million ounces o f silver per year, to be locked up in the Treas­
ury vaults, w ill undoubtedly increase the price of silver.
The Director of the Mint estimates the silver product of the United
States in 1888 to have been 43,000,000 ounces; that of the two Amer­
ican continents 97,000,000, and that of the whole world 110,000,000
ounces. The consumption of silver in 1888 in the United States he
estimates was 34,000,000 ounces, 29,000,000 ounces for coinage and
5,000,000 ounces for manufacturing purposes; and in the rest of the
world the consumption was for coinage 68,090,000 ounces and for
manufacturing purposes 10,000,000 ounces. The effect of the pur­
chase by the United States of an additional 25,000,000 ounces an­
nually w ill certainly have a tendency to enhance the value of silver,
provided the Treasury notes which are issued for the purchase of the
silver are maintained at a value equal to gold. If there is any cov­
ert design or any expectation that under the operation of the pro­
visions of this bill silver and gold coin of the United States w ill part
company, and the operations of the Government and the business of
the country be placed upon a. silver basis, it certainly is not shared,
in by the majority of Senators. If I believed that this bill would
produce such an effect, or would, as it has been claimed, lead to free
coinage of silver by bringing us gradually to a silver basis, it would
not receive my support. If I were going to support a measure de­
signed or, in my opinion likely to bring about free coinage of silver,
I should much prefer to support the amendment proposed by the
senior Senator from Colorado: to provide directly and openly for
free coinage; to give the country warning, and at one bound to go
from the gold standard to the silver standard, and let the industries
of the country adjust themselves to the new standard of values w ith
one convulsion.
I can conceive of nothing more disastrous to the business and pros­
perity of the country than would be the gradual and unlooked-for
divergence in the value o f our gold and silver coin and certificates
and the fluctuations in the money centers of the country from day
to day and from week to week of the gold value of silver certificates
until the value of our silver coin and certificates was no greater, than
silver bullion.
Our experience during the war, when the values ot gold andlegalDOli




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tender currency were subject to fluctuations, and they were dealt in
in the stock markets d,s commodities, ought to induce us to avoid a
repetition of such a condition of affairs. I am not in favor of any
measure the result of wjiich i s uncertain. The finances o f the coun­
try can stand heroic treatment. The wealth, the energy, and the
patriotism of our people are so great that we will survive the effect
of any legislative measure likely to become a law, but the industries
of the country require that whatever changes in our financial policy
are adopted shall be fair and open and understood by the business
community. I f the measure which shall be adopted by Congress
looks to the maintenance of the present standard and to the en­
hancing of the price of silver so as to bring it nearer the price o f
gold, it seems to me apparent that nothing should be omitted which
is calculated to enable the Treasury Department, in the execution of
the law, to carry out the intention of Congress by preserving the
parity of value between the silver and gold currency; and if, like
the legal-tender currency, the new Government notes are to be given
the legal-tender quality and to be made redeemable in coin, I can see
nothing* but a merely sentimental objection against giving the Sec­
retary of the Treasury the same powers for their redemption that he
possesses for the redemption of the legal-tender notes.
The question of the power of the Government under the Constitu­
tion to. make Government notes redeemable in coin legal tender
is settled beyond controversy. The Supreme Court o f the United
States is the tribunal which, under the Constitution, is intrusted
w ith jurisdiction to hear and finally determine all questions arising
under the Constitution, and to construe that instrument. There
may be diversity of opinion as to what the Constitution means until
that court passes upon the question, but when it has declared the
meaning o f any provision of that instrument that is the end of con­
troversy. I see no reason why, Congress possessing th'e power to do
so, the certificates to be issued under the provisions of this bill, which
w ill be the promises of the Government to pay the amount called for
by them in coin, should not be made legal tender in the payment of
private debts as well as public dues.
Such a provision, I believe, would help to keep them at par w ith
gold and to keep them in circulation.
The following article from the. New York Tribune sets forth the
dangers and inconveniences likely to arise from the fluctuations of
silver, and is worthy of careful consideration:
STLVER FLUCTUATING.

There have been three distinct prices for ailvor this month. Silver certificates
have sold at 101J and at 106. The actual bullion at N ew York has sold at 101 and
as high as 104&. Silver bars at London declined to 46 pence per ounce and then
then rose to 47£, the N ew York equivalents o f w hich are about 100J and 103|
cents per ounce. These sharp fluctuations remind one unpleasantly of the
scenes in the gold-rooni during the war. I s the country going to have another
trial o f a currency which varies from day to day in value and even from hour to
honr?
Congress has no power to determine what the w eather shall be, and it has ju st
as little to determine w hat shall be the money o f the commercial world. B ut it
has power to cut American currency loose from the money of the commercial
world, so that th e value o f American currency shall be determined by the frantic
Shrieks o£ speculators, who are baying and selling silver ju st now w ithout any
regard w hatever to permanent relations o f supply or demand, ju st as th ey were
buying gold during the war, and would buy and sell gold again if the paper cur­
rency should come to be redeemable in s ilv e r Then men who trade in money
and gamble in p iices would get back th$ power to rob th e laborers of the nation
a t tneir pie )sure, a power o f which they were deprived bv specie resumption
eleven years ago. To all appearances there are men in Congress wlio warn,
nothing else so much as a revival of that wholesale robbery o f industry by fluctu­
ating money.
'It ought td be safe to assume that a Republican Senate would not suffer itse lf
to be forced into antagonism with a Republican House or a Republican President
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on a measure o f political importance. B a t i f some Republican Senators are 'will­
ing to co-operate w ith th e Democrats o f that body in defeating th e recommenda­
tions o f the President and Secretary o f th e Treasury, and also defeating a meas­
ure adopted in partial accord w ith those recommendations by the caucus o f Be*
publican members in th e House, it may be th at th e country w ill have to rely for
the safety or integrity o f its currency upon the veto o f its President. For it is
not easy to see how £uch measures' as are proposed in th e Senate could receive
the approval of th e President, whose deliberate and carefully matured convictions
were expressed in his annual m essage last December.
Compulsory purchase o f more silver than this country produces, and issues o f
silver notes redeemable in any law ful money, but not in bullion, le st redemption
in bullion.should too surely prevent their depreciation, could hardly be reconciled
w ith the convictions o f any conservative President o f either party. President
Cleveland made it known that he would have vetoed any such measure, and Pres­
ident Harrison gave assurance in his annual message that no measure calculated
to impair the soundness o f the currency or to force upon the U nited States a
monetary basis different from that of the commercial world would accord w ith
his convictions. W hether he can be persuaded that an issu e o f $4,500,000 to
$6,000,000 m onthly o f certificates redeemable in standard silver dollars, and not
redeemable in any other w ay if the Treasury loses much o f its gold, would be con­
sistent w ith soundness o f the currency remains to be seen, but it is significant
that those who advocate extreme measures iu the Senate are also canvassing to
ascertain w hether a veto can be overcome by the votes o f a few Republicans w ith
all the Democrats.
I t is to be hoped that Senators and R epresentatives w ill have the patriotic
good sense to avoid such an antagonism, for its effects could hardly fail to be
harmful to the Republican cause, and also to the industries and business of the
country. Practical men know that a measure which is distrusted is almost sure
to do mischief, for the distrust itse lf is mischief. I f a President and his advisers
feel compelled to pronounce a measure unsafe, the strongest financiers 'here and
abroad w ill be apt to accept that judgment, at least so far as to guard against loss
by withdrawing gold from use. A distrusted measure would therefore mean con­
traction, and a contraction to which no lim its can be set.

If any act for the purchase or coinage of silver bullion and the
issue of Government notes, redeemable at the option of the Govern­
ment in silver coin, enhances the value of silver bullion, a policy must
be pursued by the Government which will keep all it s currency, all
money, of equal value and make it interchangeably.
At the present time the currency of the country is not equal in its
intrinsic value. Gold is the unit of value by the statutes o f the
United States, and is the medium of exchange w ith the principal com­
mercial countries of the world. Whatever may be substituted for
gold in the United States and whatever functions it may be made
to perform, in all foreign exchanges with European countries every­
thing w ill be measured by gold. Gold w ill continue to be the inter­
national money* Balances of trade w ith the principal commercial
nations of the world must be settled with it. The currency of the
country at the present time consists partly of gold and gold certifi­
cates, redeemable upon presentation in gold deposited in the Treas­
ury for their redemption; partly of silver coin and silver certificates
redeemable in silver coin, the coinage of which is authorized under
the act of January, 1878, intrinsically worth at the present time about
80 cents on the dollar, but which is made to pass current at par, not
so much because the Government has made it a legal tender for the
payment of private debts, but because it has provided for its practi­
cal conversion into gold by agreeing to receive it for taxes and cus­
tom-house dues; and partly in what is known as legal tender, re­
deemable on demand in coin, for which a fund of $100,000,000 in gold
is held in reserve in the Treasury.
I f the Government should to-day demonetize gold, it would still
perform the functions of a medium of exchange in all interna­
tional transactions and in ordinary transactions between citizens.
The stamp o f the Government adds nothing to its intrinsic value.
Let the Government repeal the law providing for the redemption of
its legal-tender notes, and they would rapidly depreciate. Let the
Government repeal the provision of the act o f 1878 for the receiving*
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of the silver certificates in payment of public dues, and the Bland
dollar and the silver certificate woifld at once depreciate until they
were worth no more than the value of the silver bullion in the dol­
lar and in the silver represented by the certificate.
But I need not pursue this matter further. Every one w ill sub­
stantially agree w ith me who believes that the value of money de­
pends upon the amount of the precious metals it contains or can be
converted into: paper money is valuable only because it is a
promise to pay in gold or silver coin, and the stamp of the Gov­
ernment and statutes declaring something to be money having no
intrinsic value, without some promise which makes it convertible
into gold and silver, can neither give it value nor make it perform
the functions of money. Nothing could be more admirably adapted
to the wants of trade or more acceptable to the business community
than the certificates issued by the Government for gold bullion or
gold coin deposited in the Treasury. They possess all the utility
of both gold coin and paper currency, they represent the full in­
trinsic value of the amount of gold they call for and at the same time
possess all the advantages for handling and transportation of a paper
currency. In them the reliability o f coin and the convenience of
paper money are united. As they represent only money of intrin­
sic and standard value among all nations, their issue can never un­
duly inflate the currency, and so long as the gold remains on deposit
for their redemption on demand they can never depreciate. If the
amount of silver in a silver dollar were increased so that it would be
intrinsically worth a dollar in gold, and kept there, or silver certifi­
cates were made redeemable in bullion at the market value in gold
upon the day of redemption, which is the substance of the plan of
the Secretary of the Treasury, silver certificates would perform an
equally valuable office as a medium of exchange as gold certificates,
and that without danger of depreciation of silver currency and the
retirement of gold.
The silver coin of the United States, coined under the Bland act
and now stored in the Treasury vaults, may be compared to a lean­
ing tower. The fact that a silver dollar is intrinsically worth but
about eighty cents on the dollar is the law of gravitation that is
constantly pulling the whole mass downward to the level o f the
price of silver bullion. The fact that the Government receives it
in payment of public dues upon a par with gold and redeems the
certificates in gold if preferred by the holder is the counteracting
force that prevents the fa ll; but every month’s coinage represents
a course o f material that raises the height of the tower and carries
it towards the center of gravity, which, once reached, the law oi
attraction w ill precipitate the mass downward. That there is sucli
a lin e between the opposing forces, beyond which we can not safely
pass, is conceded by most people in this country, and because soni%
persons have miscalculated its position and the precise time when
it w ill be reached does not prove that it does not exist.
If the theory of gentlemen who deny that the intrinsic worth of
gold and silver adds anything to their value as money and who con­
tend that it is the fiat of the Government that alone gives value t<y
the circulating medium is correct, it is poor economy to retain gold
or silver, or even copper, as money. We should take the cheapest*
metal which is divisible and malleable and can be coined and
stamped. The coin of the country might be o f iron and of the same
size, the stamp o f the Government alone indicating whether a coin
was a one-cent piece or a double eagle. As the cost of the metal
would be merely nominal, the Government could regulate the amount
of the circulating medium at pleasure; and if the value of money
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depends entirely upon its volume, as is contended by some, it could
regulate the value also, or we need not have a metallic currency at
all. We could substitute paper for metal. But, instead of using the
promises of the Government to pay coin at a fixed day or at the
pleasure of the Government, it would only be necessary to express
upon the face of the paper and to determine by law what its value
should be in payment of public dues and private debts, and send it
forth to perform the functions of money without further responsibil­
ity on the part of the Government.
But that all such theories are radically and totally wrong is dem­
onstrated by all human experience. The necessity for money arose
from the division of labor among men, the necessity for the inter­
change of the products of their industry to supply their wants, and
the inconvenience of barter. The convenient prosecution of com­
merce requires a common representation of values, a medium or tool
of exchange. This medium of exchange we call money. Gold and
silver were originally selected in preference to all other articles of
value for money because they possess, in a greater degree than any
other commodity we know of, the qualities necessary for convenient
use as such. They constitute the bulk of the money of the world
to-lay for the same reason. A medium of exchange should possess
considerable valu e; that is, be capable of being used for a great
many purposes. It should be tolerably scarce and hard tio ob tain ;
it should be easily transported and pass readily from hand to hand;
it should be easily subdivided and changed in form, and it should
be abundant enough to answer the wants of commerce. Some metals
are too abundant to possess the necessary value; some are too
scarce. Precious stones, while of sufficient value, can not be sub­
divided. But the white and yellow metals possess all the qualities
necessary for a medium of exchange, and therefore, by a law o f nat­
ural fitness, have been selected for money, and by the same law re­
tain the place.
But all transactions are not cash transactions. Sometimes, for
want of ready money, the purchaser buys on credit; that is, he prom­
ises to pay money on a future day. In actual business this promise
may be implied, it may be verbal, or it may be by a formal instru­
ment in writing, in which case it becomes a note or bond.. It may
be worth all the money it calls for, but it is not nroney. The prin­
cipal is not different when the Government issues its promises to pay
money at a future day, either fixed or left at its option. The Gov­
ernment may provide by law —so says the Supreme Court—that its
promises to pay money shall perform certain functions or even all the
functions of money, but their value w ill still depend upon the prom­
ise of the Government to redeem them in gold and silver money and
upon its ability to do so. The legal-tender notes were promises of
the Government to pay money—that is, gold or silver co in ; but the
time at which payment wa3 to be made was left to the option of the
Government, and during the war some people lost faith in the ulti­
mate ability of the Government to pay them. The consequence was
that the legal-tender notes depreciated in value until they were
worth no more than 35 cents on the dollar in gold, and even when
the war was over, and the ability of the Government to pay its notes
was unquestioned, the notes remained at a discount until the Gov­
ernment fixed a time when it would redeem them by the payment of
gold $nd silver, and made provision for doing so. The legal-tender
notes to-day are equal to gold, because the holder knows he can pre­
sent them at the Treasury of the United States and receive coin for
them.
A member o f this body said to me not long since: “A silver dollar
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is just afc good to tne as a gold dollar. I can purchase as much with
it as I can w ith a gold dollar, and I can exchange it for a gold dol­
l a r . T h i s is true, but it is true only because the Government re­
ceives it in lieu of a gold dollar in payment of public dues; and this
qualified or, rather, limited redemption has so far, with other favor­
able causes, been sufficient to maintain it at par.
'The same thing is true in regard to the greenback. It is as good
to me or even better than gold coin; but it was not always so. At
one time it was worth but 35 cents on the dollar. It is worth par
now because it is convertible at the pleasure o f the holder into coin.
To the same effect was the argument of the senior Senator from Ne­
vada, in his able and instructive speech recently delivered in this
body, illustrated by the story he told of sending a silver dollar from
the Senate cloakroom to a telegraph messenger to pay 50 cents, the
cost of a telegram, with the message to the boy that if, in his judg*
ment the dollar was worth but 75 cents, to send him back 25 cents
in change, but if worth 100 cents to send him back 50 cents in
change. The boy sent him back word that the silver dollar was
good enough for him. All such arguments, if they may be dignified
by calling them such, in favor of silver coinage w ill not stand investi­
gation. They are like a sleight-of-hand performance that deceives
the uneducated eye. They appeal to a fact which is uncontroverted
without going into the causes which make the fact possible, aud they
prove nothing.
What does free coinage o f silver mean ? It means that every man
who has silver bullion may carry it to the mints and receive for every
412^ grains of standard silver a Bland dollar; or, under the Bland
act, if he deposits bullion in sufficient amount may receive a Gov­
ernment note which is receivable for public dues and redeemable in
silver coin.
What would be the effect of a free coinage of silver? It would
stop the coinage of gold. No one would take metal worth 100 cents
to the mint to obtain a dollar in coin while he could take metal
worth 75 or 80 cents and obtain a dollar for it. It would at once
depreciate the silver dollar to the value of silver bullion.
Mr. TELLER. I should like to interrupt the Senator if he is at a
point where I may ask him a question. I should like to inquire
where he would get his silver bullion at those prices.
Mr. DOLPH. I w ill show tbe Senator from Colorado later. If
the effect o f any legislation we may adopt is to permanently advance
the price of silver we should get it from all over the world.
Mr. TELLER. I should very much like to hear the Senator on
that point.
Mr. DOLPH. X prefer to consider it later, and will do so before I
yield the floor.
Mr. TELLER. I do not wish to interfere with the order o f the
Senator’s remarks.
Mr. DOLPH. Some people affect to believe that free coinage of
silver would enhance the value of silver and bring it to par with
gold, but such a belief is not justified by the experience of this or
any other country. Tbe gold dollar and the gold certificate and the
Bland dollar and the silver certificate would part company the mo­
ment any act providing for the free coinage of silver was approved by
the President; and before the first dollar coined under it could be
put into circulation the silver dollar would be worth, as compared
w ith gold, no more than the value of the bullion it contained. Sil­
ver would become the medium o f domestic exchauges and the meas­
ure of all values in the United States, but the gold value of prop­
erty would not be enhanced.
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The value of our currency would fluctuate from time to time as
the price of silver rose and fell in the markets o f the world. Gold
and silver would be sold daily in the stock enchanges o f the great
cities and he subject to similar speculations to those in legal-tender
currency and gold during the war.
From the time the gold dollar and the Bland dollar parted com­
pany all the public dues of the Government would be paid in silver
and the transactions of the Government would be upon a silver basis.
The outstanding bonds of the United States and the interest on them
would be paid in silver; or if, as some suppose, they are payable in
gold, the Government would be compelled to purchase gold in the
market at a premium for the purpose of their payment. In a word,
we would at once, as to our financial policy, take our place along­
side of the Asiatic countries. We would join the thousand millions
of people of Asia, Africa, and South America, who to-day have silver
for their currency, and part company With the three hundred mill­
ions and over of the inhabitants of the enlightened countries of
Europe, who maintain a gold standard.
It is claimed that free coinage of silver in the United States would
increase the price of silver bullion ; that the fortunate holder of silver'
bullion would leap great advantage by free coinage, and that the
United States would be made the dumping-ground for the silver o f
the world. But this, in my judgment, wouid not be the case; at
least, any increase in the price of silver bullion would be but tem­
porary. With free coinage the price of silver in the United States,
including silver coin, would speedily become the market price of
silver bullion everywhere, and there would be no inducement to im­
port silver and no special inducement to coin the product of our own
mines. The w orlds product would be distributed much the same a3
it is now for coinage and manufacturing purposes. It could not be
otherwise. There is no alchemy in the coining process that could
convert without lim it 80 cents* worth of silver bullion into a dollar
worth 100 cents.
And what would we gain ? We might enhance the temporary
value of silver somewhat, but even that is doubtful. If the compul­
sory coinage by the United States of $2,000,000 worth of silver per
month'has not had the effect to stop the dfecline in the price of silver,
who can say that the use of the amount we should coin under free
coinage would increase its value ?
No one can predict w ith certainty that as much silver would be
coined with free coinage as is now coined under the Bland bill.
Free coinage would, in my judgment, not only not increase the price
of silver, but would relieve the fears of European nations concern­
ing the result of the continuation of their present gold standard, and
we should be shorn, o f our influence with them, if we have any, to
bring about an international agreement for the opening of their
mints to both silver and gold at uniform rates.
The five hundred millions of gold now in circulation and in the
Treasury would go abroad to pay balances of trade, and, if the free
coinage of silver enhanced the value of silver to pay ior silver bull­
ion to be coined at our mints or if it remained in the country, would
be withdrawn- from circulation and hoarded. This disappearance
of gold would be more rapid than the coinage of silver could be, and
would, for a time at least, violently contract the currency.
The additions to our currency by coinage o f silver would be un­
certain and irregular, depending upon circumstances over which the
Government would have no control.
The late Secretary Manning, in his annual report for 1886, advo­
cated ihe redemption and cancellation of the legal-tender currency
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13
w ith the surplus revenues, without proposing to provide any sub­
stitute. That would have at once contracted the currency of the
country $246,000,000. The effect o f snch a contraction would have
been to demoralize every industry in the country and to increase the
purchasing power of gold. As the currency contracts, the merchants,
the bankers, and the business men of the country correspondingly
contract their business operations, the demand lor labor is lessened,
and the laborer loses his employment; so that at last the loss falls
upon those least able to bear it, the men whose only capital is their
daily labor and whose daily wages are necessary to secure support
for themselves and families.
The retirement of the legal-tender notes, leaving the bonds out­
standing, would have been scarcely less than crim inal; but, in my
judgment, a policy which would drive $500,000,000 of gold out of
this country without providing a certain and sufficient substitute
would bequite as great a crime. Secretary Manning’s pi an would ha ve
withdrawn the currency gradually, and the industries of the country
would have had an opportunity to adjust themselves to the change.
The $100,000,000 of gold reserved for their redemption would have
been returned to circulation, so that the actual contraction of the
currency would only have been $246,000,000; whereas gold, with
free coinage o f silver, would suddenly cease to circulate and there
would be a sudden contraction of more than double the amount
which would have been caused by the adoption of Secretary Man­
ning’s plan for the retirement of the legal-tender currency.
Both for the purpose of securing an addition to our circulating me­
dium and for enhancing the value of silver bullion, a law which re­
quires the purchase of an amount of silver bullion approximating or
exceeding our production of silver and the issuing of Government
notes possessing the qualities and performing the functions of money,
appears to me to be far preferable to free coinage.
I can see how if w ith free coinage the price of silver was enhanced
the prices o f commodities might be enhanced also. The price of
wheat and cotton in silver countries might to some extent follow sil­
ver in its upward tendency and so the price of those commodities in
the foreign markets improve; but it would not necessarily be so.
Indeed such a result is hardly probable. The natural consequence
would be for the price o f commodities to depreciate as the measure
of value appreciated.
I can also conceive, i f the payment of debts could be made in sil­
ver coin or certificates which were at a discount w ith the present
currency, the debtor class might be benefited, but practically the
benefit would be but little. Where the obligations of the debtor did
not call for gold coin they would be speedily changed and made to
correspond w ith the new standard of values.
The people of the Pacific coast, foolishly as I thought at the time,
during the war adhered to coin and transacted their business on a
coin basis, to the detriment of the consumer and debtor class and the
benefit of the middlemen and the creditor class. If the business of
this country should be placed upon a silver basis, I do not think the
debtor class upon the Pacific coast would be greatly benefited, as
the Bland act only provides that the Bland dollar shall be a legal
tender for private debts when not otherwise provided; and it is an
almost universal custom upon that coast to make promissory notes
and other obligations to pay money payable in gold coin,, and the
courts enforce specific performance of the contract.
Of what benefit would the change of values from the gold to the
silver basis be to the people generally f The benefits which could
possibly accrue to any class of our citizens by free coinage of silver
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may be summed up in the scaling down o f indebtedness; and it
might well happen that the derangement of our currency would bring
about a state of affairs by which it would be more difficult for the
debtor to pay in the new measure of values than in the present one.
Take for illustration one commodity, wheat. Suppose for argu­
ment's sake the price under the present standard to be 80 cents per
bushel, the value of the silver bullion in a Bland dollar measured in
g o ld ; suppose w ith free coinage of silver a bushel o f wheat becomes
worth a dollar in silver, but the dollar is worth only 80 cents in gold—
the actual price of the wheat in the domestic and foreign market
would be unchanged. Everything the farmer had to buy would be
advanced when the value was measured in silver instead o f in gold,
in the same proportion w ith wheat. His grocercies, his clothing, and
his agricultural implements would advance in price, and the price
received for his wheat would go no further and have no greater pur­
chasing power than the price previously received.
The laboring class would suffer first and longest from the change.
The products of the looms, the factories, and the farms would quickly
respond to the change in the measure o f values; but the men whose
only marketable commodity is their daily labor would find that wages
are not as easily adjusted. They would be expected to be content
w ith a dollar having a purchasing value, as compared with the present
standard, of only 80 cents.
That these results will follow free coinage of silver may be demon­
strated to an almost absolute certainty by our own experience w ith
free coinage of gold and silver at a fixed ratio.
The true situation—I call the attention of the Senator from Colo­
rado to this as being a partial answer to his question—the true situ­
ation of the various states o f Europe, whose action concerning sil­
ver w ill affect the price of silver as compared to gold and counteract
any legislation we may enact, is as follow s:
Roumania is going to demonetize 25,000,000 or 30,000,000 francs in
five-franc pieces, and in such haste too, induced by the prospect of leg­
islation upon the subject in the United States, that the minister o f
finance has invited offers for the sale of the silver, and it is rumored
that an American syndicate has been formed to purchase it for the
purpose of speculation.
Mr. TELLER. I did not understand where the Senator got that.
Mr. DOLPH. This refers to Roumania. I am not giving my au­
thority at present for all these statements.
Mr. TELLER. A newspaper statement ?
Mr. DOLPH. 1 am not giving a newspaper statement.
Mr. TELLER. That is all there is o f it.
Mr. DOLPH. No, I am not giving newspaper statements. There
is only one man in the world better qualified to give information
concerning it than the man whose statement I now quote. I w ill
pursue that later.
Mr. McPHERSON. Where did I understand that was ?
Mr. DOLPH. Roumania.
The settlement of their silver accounts by the countries compos­
ing the Latin Union is close at hand. At the end o f the present year
the three debtor countries, Belgium, Italy, and Greece have to take
back from France their depreciated five-franc pieces, and the Bank
of France holds, ready counted, packed, and set aside ready for deliv­
ery, the following sums: 132,000,000 francs in Italian five-franc pieces,
204,640,000 francs in Belgian five-franc pieces, 2,300,000 francs in
Greek five-franc pieces, 5,500,000 francs in Italian fractional cur­
rency, and 2,750,000 francs in Belgian fractional currency. Belgium
DOL




15
can not use such an amount of silver, and must sell part of it whether
she likes it or not.
Mr. TELLER. I do not like to interrupt the Senator, but I wish
to ask him to give us his authority.
Mr. DOLPH. I will do that before I get through. The Dutch
Chambers have long ago placed tl e discretionary power to sell 25,000,000 florins in pieces o f 2£ florins in the hands of the minister of
finance, who will, of course, seize the opportunity, if we enhance the
price of silver, to sell it.
Germany stopped its sales o f silver in 1878 when silver fell to about
50d. But the thalers must be sold, as she has no use for them under
her monetary system, and arrangements are being made to resume
sales when the market w ill warrant, and then 450,000,000 of marks
o f fine silver w ill be put upon the m arket/
Mr. SHERMAN. I ask the Senator whether that is in the Bank of
Germany or is in circulation ? Has the Senator any information
upon that subject ?
Mr. DOLPH. It is in the bank. This is the silver, as I under­
stand, not in use, not in circulation. If we should adopt free coin­
age of silver and the price was permanently enhanced, which I do
not believe would be the case, we would be flooded w ith these mill­
ions and millions of dollars of silver, and it might come to pass that
India would suspend silver coinage and send her silver to our markets.
I shall have more to 1say about silver coinage in India directly.
Secretary Windom, in his annual report, dismisses the proposition
for free coinage o f silver as impracticable. I quote what he says
upon that subject:
FOURTH.

FREE COINAGE OF STANDARD SILVER DOLLARS.

T his may be called the “ heroic” remedy. To open our mints to free coinage
for depositors, w hen 412J grains o f standard silver are worth in the markets of
th e world only 72 cents, would be to say to everybody at home and abroad, bring
us 72 cents’ worth o f silver, and by the magic o f our stamps and dies we w ill trans­
mute it into 100 cents.
Free coinage o f silver, w hile it is an indispensable condition o f permanent resto­
ration, were it bestowed bv th is country at a tim e when the metal value of the
silver in th e full legal-tender dollar is 28 cents less than its nominal value, would
simply have the effect, by opening the mints to the free coin&g^of silver into legal
dollars, to close them for the free coinage o f gold. No doubt our mints would find
ample employment. I f th ey were now open to the free coinage of silver w e should
not need tnem for th e coinage o f gold, because gold w onld command a premium
and become a commodity to be hoarded or shipped abroad, and not a coin for circu­
lation at home. I t would stop the simultaneous circulation of gold and silver.
Our customs dues would be paid only in silver, our legal-tender notes would be
used to draw the gold from the Treasury, and would then represent only a debt in
silver, and w e should be compelled to go into the market and purchase gold to m eet
our obligations or pay them in silver dollars. Etch and powerful as the U nited
States is, w e are not strong enough nor rich enough to absorb th e silver ot the
world w ithout placing our country wholly upon th e A siatic silver basis. This
policy would in now ise tend to restore the desired equilibrium between gold and
silver nor to promote their joint use as money.
Nor w ould it m eet the hopes and expectations o f those who desire an increase o f
. our circulating medium.
The amount o f gold and gold certificates owned b y the people and in actual cir­
culation, exclusive o f $187,572,386 owned by the Treasury on November 1, 1889,
was $496,622,300. Free coinage o f silver dollars would, as already stated, very
soon put th is large amount o f gold at a premium and cause it to be hoarded or ex­
ported, and thus retire it from circulation.
Even if w e should coin 100,000,000 standard silver dollars a year, it would be five
years before enough o f them could be put in circulation to equal the gold thus ban-.
ished, and by the tim e 500,000,000 silver dollars, in addition to our present stock,
could be circulated, their depreciation from the gold standard m ight require one
or tw o hundred millions more to do the same amount o f work now done by gold.
I t is difficult to conceive of a method by which a more sw ift and disastrous con­
traction o f our currency could be produced.
I t is w ithin the memory o f all that for several years prior to 1879 gold was not
in circulation as money, but w hen resumption took place the hidden treasures,
which had so long been banished from actual use, at once flowed into the chanDO L




16
nels o f business and produced the most substantia} and satisfactory conditions of
prosperity.
The free coinage o f silver dollars, under existing circumstances, would bt> to re­
verse the results achieved bv resumption.

To show that my view s as to the causes which have heretofore
operated to maintain silver coin and silver certificates at a par with
gold are the view s entertained by the best-informed persons on the
subject, I quote from two Secretaries o f the Treasury under differ­
ent Administrations. Secretary Manning, in his annual report for
1886, said:
Our 215,000,000 silver dollars are by law full legal tender. Sharing that function
w ith the monetary unit itself, the honor of the country, not less than its interests,
is involved in the preservation o f their equivalence with that unit w herever our
citizens dwell and our law s run. Equivalence in foreign trade, for the reasons
above indicated, is for the present quite impracticable. Equivalence in domestio
trade is practicable. B ut that equivalence is now imperiled by the continuing
coinage and increasing number of the silver dollars. T his is much more than a delib­
erate judgm ent of th e Secretary of the Treasury. It. is attested to him from the
centers o f trade in all parts o f the country, as much from the South as the' 2$orth,
as much from the W est as the East. N ot alone our able statesm en and instructed
economists and financiers advise the stopping o f the silver coinage now, but
wherever our fellow-citizens are concentrated inrcommercial cities and towns the
business classes engaged in the trade, the enterprises, and manufactures of those
centers, and i he still larger masses o f workingmen employed by them, urge the
stopping o f the silver coinage now. I t is these classes w hich are always first to
perceive such perils to industry and trade and the consequences they entail. To
their judgm ent in such a matter even the acts o f Congress touching commerce
and currency are finally appealed. For it is their interests first, and afterward
th e interests o f the agricultural classes, w hich are endangered. E very business
man from day to day m ust form his separate judgm ent o f any medium o f exchange
w hich h e may be obliged by law to take in his n ex t bargain. T w enty years ago
th e gold dollar was not kept from a premium, to morrow the silver dollar can not
be kept from a discount, in disregard o f their appraisal.
ONE-METALLISM OR TWO-METALLI8M— OUR ONLY CHOICE.

The choice before Congress is not between silver monometallism and gold mo­
nometallism. Both are inadmissible. The choice before Congress is not between
bimetallism and either gold or silver monometallism. The latter are not adm issi­
ble, and bimetallism is only possible with the co operation o f other nations, which
is not now to be had. For, although France holds the same friendly attitude, and
would be followed by some of her associates of the Latin Union, England now, as
in 1878 and 1881, is unwilling to depart from her mintage o f gold alone into coins
o f unlimited legal tender, and G-erraanynow, as in 1881, regards the concurrence of
England in an international bim etallic union as a sine qua non. Such being the
facts, established upon abundant testimony, official and unofficial, gathered by
the Department o f Ntate, it becomes plain that the choice of Congress is only in
fact between stopping the coinage o f silver dollars or risking by further coinage
th e inequivalence of those dollars with our monetary unit, risking the fall of the
value o f 215,000,000 silver dollars from their legal domestic rating to their commer­
cial international value, which is 20 per cent, less, and involving such a disuse in
our domestic trade o f 550,000,000 dollars of gold coin as when gold was ejected by
paper during the war.

Secretary Windom repeats the warning in the following language}
SILVER.

The continued coinage o f the silver dollar, at a constantly increasing m onthly
quota, is a disturbing element in the otherwise excellent financial condition of the
country and a positive hinderance to any international agreement looking to th e
free coinage o f both metals at a fixed ratio.
Mandatory purchases by the Government o f stated quantities o f silver and
mandatory coinage of the same into full legal tender dollars are an unprecedented
anomaly, and have proved futile, not only in restoring the value o f silver, but even
in staying the downward price of that metal.
Since th e passage of the act of February 28,1878, to November 1,1889, there have
been purchased 299,889,416.11 standard ounces of silver, at a cost of $286,930,633.64,
from which there have been coined 343,638,001 standard silver dollars.
There were in circulation on November 1 of the present year 60,098,480 silver
dollars, less than $1 per capita, the remainder, 283,539,521, being stored away in
Government vaults, of which $277,319,944 were covered by outstanding certificates.
The price o f silver on March 1,1878, was 54J| pence, equal to $1.20429 per ounce
fine. A t this price $2,000,000 would purchase 1,660,729 ounces o f fine silver, which
would coin 2,147,205 standard silver dollars. A t the average price o f silver for
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th e fiscal year ended June 30, 1889 (42.499 pence), equivalent to $0.93103 per ounce
fine, $2,000,000 would purchase 2,146,755 fine ounces, out o f w hich 2,775,628 stand­
ard silver dollars could be coined.
The lower the price o f silver the greater the quantity th at m ust be purchased,
and the larger the number o f silver dollars to be coined, to comply w ith the act or
February 28,1878.
N o proper effort has been spared by the Treasury D epartment to put in circu­
lation the dollars coined under this law. They have been shipped, upon demand,
from the mints and subtreasuries, free of charge, to the nearest and the most dis­
tant localities in the U nited States, only to find their w ay back into the Treasury
vaults in payment o f Government dues and taxes. Surely the stock of these dol­
lars which can perform any useful function as a circulating medium must soon be
reached, if it has not been already, and the further coinage and storage of them
w ill then become a w aste o f public money and a burden upon the Treasury.
I t is fi eely admitted that tne predictions o f many o f our w isest financiers, as to
w hen the safe lim it o f silver coinage would be reached, have not been fulfilled,
but it is believed that the principles on which their apprehensions were based are
justified by the law s o f trade and finance, and by the universal experience o f man­
kind. W hile many favorable causes have co-operated to postpone the evil effects
which are sure to follow th e excessive issue of an overvalued coin, the danger
none the less exists.
T he silver dollar has been maintained at par w ith gold, the monetary unit,
mainly b y the provisions of law which make it a full legal tender, and its repre­
sentative, the silver certificate, receivable for customs and other dues,* but the
vacuum created by th e retirem ent o f national-bank circulation and the policy of
th e Government m not forcibly paving out silver, but leaving its acceptance
largely to the .creditor, have materially aided its free circulation.
T he extraordinary growth o f th is country in population and wealth, the unprec­
edented development in all kinds o f business, and the unsw erving confidence of
the people in the good faith and financial condition o f our Government have
been powerful influences in enabling us to maintain a depreciated and constantly
depreciating dollar at par w ith our gold coins, far beyond th e lim it which w as be­
lieved possible a few years ago.
B ut the fact m ust not be overlooked that it is only in domestic trade that this
parity has been retained; in foreign trade the silver dollar possesses only a bull­
ion value.

W hat I have said concerning the effect of opening our mints to the
free coinage o f silver does not refer to free coinage under an inter­
national agreement, fixing a ratio between gold and silver and for
opening the mints of the principal countries of Europe to free coin­
age of silver.
I do not understand that there has ever been an hour in the his­
tory of this country when the Government has not favored bimetal­
lism, that is, the coinage of both gold and silver at a fixed ratio,
provided the ratio can be maintained, so that both metals can be
coined and circulated as money. But some of us believe that national
bimetallism is impracticable, that it is not possible for the United
States alone to control by legislation the values o f gold and silver,
and that the only way to secure the use o f both gold and silver as
money, so that free coinage of both at a fixed ratio is possible, is to
secure an international agreement with the principal countries of
Europe for the establishment of such an international ratio as would
secure free coinage of both metals in the mints of those countries and
ours. There is no middle ground for us while the principal countries
of Europe decline to enter into an agreement to remonetize silver,
and we must either stand w ith the countries which maintain the gold
standard or join those in which silver is the medium o f exchange.
There does not seem to be any immediate prospect of securing
such an international agreement.
By the act of February 28, 1878, the President was authorized
to invite the Governments of the countries composing the Latin
Union, and such other European nations as he might deem advisa­
ble, to join the United States in a conference to adopt a common ratio
as between gold and silver, for the purpose of establishing inter­
nationally the use of bimetallic money, the conference to be held at
such place as might be agreed upon.
d o l—

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18
The President was authorized to appoint, by and with the advice
of the Senate, three commissioners to attend the conference. Mr.
Fenton, Mr. Groesbeck, and Mr. Walker were appointed, and after­
wards Mr. S. Dunn Horton was added to the commission. The in­
vitation was extended, and the conference met at Paris, August 10,
1878. Delegates were present from nine countries, Austria-Hungary,
Belgium, France, Italy, Netherlands, Russia, Sweden and Norway,
Switzerland, and the United States.
The conference was composed of> some of the most distinguished
men of the countries represented. Every phase of the question was
ably discussed, and the report of its proceedings is a most valuable
document, containing a vast amount of information, but the confer­
ence was barren of results. England could not be induced to abandon
her system aud Germany would not consent to do so without the con­
currence of England. Another conference was held at Paris in the
spring and summer of 1881, in compliance with the joint invitation
extended to the countries of Europe by the Governments of France
and the United States. The delegates from this country were Mr.
E v a r t s , Mr. Thurman, Mr. Howe, and Mr. Horton.
The result of tbis conference was like that of 1878: the attitude
of England and Germany was unchanged, and no agreement was
reached.
President Cleveland in his first message (1885) says:
I delegated a gentleman well instructed in fiscal science to proceed to tlie finan­
cial centers o f Europe, and. in conjunction w ith our m inisters to England, France
and Germany, to obtain full knowledge o f the attitude and intents o f those Gov­
ernments in respect to the establishm ent o f such an international ratio as would
procure free coinage of both metals in the mints o f these couotries and our own.
T he attitude o f the leading powers remains unchanged since 1881, and the view s
o f those Governments are supported by the w eight o f public opinion.

Mr. Manton Marble was the person referred to. The President
stated that four out of five of the countries comprising the Latin
Union mentioned in our coinage act had stopped the coinage of silver,
and had also agreed that silver already coined should be redeemed
in gold by the government that had coined it.
During the last administration, Mr. Edward Atkinson, o f Massa­
chusetts, was appointed by the President to proceed to Europe and
ascertain whether there was any change in the attitude o f the prin­
cipal European powers towards an international agreement for the
opening of their mints to the free coinage of silver at a ratio between
gold and silver to be agreed upon.
The result o f his mission is best told in his own words. I quote
from Mr. Atkinson’s report to the President, which is a very elabo­
rate and able one.
Mr. SHERMAN. What is the number of it ?
Mr. DOLPH. Senate Executive Document No. 34, first session,
Fiftieth Congress.
In his report to the President Mr. Atkinson says :
In presenting this case for discussion, beginning early in June, m y method
has been as follow s:
,
I have stated that th e circumstances of the tim e in the U nited States, such as
the paym ent o f all the interest-bearing bonds which are now due, th e impending
contraction o f the paper currency by the withdrawal of bank notes from circula­
tion, the probable accumulation of the surplus revenue in the Treasury in the
form o f legal-tender United States notes or coin, and other influences, might soon
render important legislation an absolute necessity, both in respect to our mone­
tary system as w ell as to the reduction o f taxation. I next called attention to the
fact that in the mean time th is contraction o f the paper currency m ight or m ust
in almost any event continue long enough to render the circulating medium of the
U nited States insufficient for the wants o f the country. Therefore, a heavy and
perhaps long-continued draft for gold coin m ight be made upon the reserves of coin
o f Europe to fill the gap. which demand soon after began and has not yet ceased.
In view of such prospective legislation in the U nited States, I have stated that,
DOL




19
It had become very desirable to ascertain what changes in monetary legislation,
if any, were lik ely to be made ere long in Europe; and, it having been confidently rep­
resented in th e U nited States that th e bim etallic theory w as making rapid progress,
the main purpose o f my mission had been to ascertain the facts. I t being impor­
tant th at i f any such action were about to be taken by the commercial and man­
ufacturing states o f Europe to restore the free coinage and full legal tender of
silver at any agreed ratio o f silver to gold, suitable measures m ight be advised by
the executive, or'might be taken by th e Congress of the U nited States, for con­
current action.
I have further stated that if the principal commercial and manufacturing
states of Europe had no immediate intention of changing from the present status
o f a lim ited coinage o f silver for subsidiary use, the standard o f full legal tender
being limited in practice to gold coin only, then it might become the true policy
o f the United States to take action to maintain the gold dollar as the “unit of
value,’’ according to the present statute, and for the E xecutive to recommend to
Congr ss suitable measures, if any further action is necessary, to maintain per­
manently the present interchangeable quality or convertibility of our currency
into gold coin on demand, whether consisting of notes, silver coin, or silver cer­
tificates.
From the beginning of my work, early in the month o f June, un til th e present
date I have called'urgent attention to tw o points which I consider of paramount
importance.

Mr. Atkinson further says, after continuing his statement of the
manner in which he had approached the subject:
H aving thus stated how I have endeavored to perform th e duties assigned to
me, I now report that in m y judgm ent—
1. There is no prospect or any change in the present monetary system of Euro­
pean states w hich can modify or influence the financial policy o f the U nited States
at the present time.
2. There are no indications of any change in the policy o f the financial authori­
ties o f the several states visited by me which warrant any expectation that the
subject of a bim etallic treaty for a common legal tender, coupled w ith the free
coinage o f silver; w ill be seriously considered at the present tim e by them.
3. There is no indication that the subject o f bimetallism has received any in ­
telligent or serious consideration outside o f a small circle in each country named
as a probable or possible remedy for the existing causes o f alleged depression in
trade.
4. There is no considerable politically organized body o f influential persons in
either country w ith whom a combination could be made, if such a combination or
co-operation were desirable on th e part o f a similar body in the United States, for
promoting any definite or practicable measures o f legislation to bring about the
adoption o f th e bim etallic theory according to the commonly accepted meaning
o f th at term. The discussion is as y et almost w holly personal, and w ithout con­
centration o f purpose or thp presentation o f any w ell devised measure capable of
being acted upon.

‘He also says in regard to the different countries:
Germany can not, or w ill not, take up the consideration of any change in her
present acts w ithout the concurrence o f Great Britain. The discussion o f the
theory o f bimetallism is actively continued in an academical manner by the pro­
fessors o f her u n iv ersities; but in March last, at a convention of delegates, the
various chambers o f commerce, w hich are very important representative bodies,
declared against any change in existing acts by a vote o f 71 chambers to 4. Vide
report of her Britannic Majesty’s Consul Strachey, o f D resden,'to the Govern­
ment of Great Britain, a copy o f which is submitted herewith.
Great Britain aw aits the report or reports o f th e royal commission on gold and
silver, w hich has adjourned until the autumn or winter, after th e examination of
sundry w itnesses whose testim ony has been published, a copy o f which is sub­
mitted herewith.
The possibility o f a bim etallic treaty without the concurrence of Great Britain
has been suggested, but it has apparently no prospect even of consideration in
Germany, and very little elsewhere. A t every point and by the representatives
o f every phase of opinion on the Continent, I w as assured that the continuance
o f th e present status or the future adoption o f a bim etallic system o f legal tender
■virtually rested upon the action o f Great Britain.
'

Then he proceeds to state what the support is of the so-called
movement in Great Britain for bimetallism.
The bim etallists have brought to their support the E ast Indian civil and mili­
tary officers who maintain their families in England and who are obliged to re­
m it depreciated rupee paper to London; also a portion only o f the manufacturers
and merchants, especially o f Lancashire, who nave been ex posed to more or less
DOL




20
difficulty and expense in realizing the proceeds o f their goods, w hich are exported
to the E ast. Outside o f these tw o c la s s e s , who have, or are assumed to have, a
direct personal interest in the matter, the great body o f the E nglish people are
apparently indifferent or else are ignorant o f the subject. Bim etallism has not y et
become a liv e question o f any great parliamentary or political importance.

The most important part of his report is the follow ing:
The most important point which 11 eg leave to present is this: I am convinced
by m y own observation, sustained by the judgm ent o f others, citizens or officials
of the U nited States, whom I have consulted, that it would be unwise and inex­
pedient for the U nited States again to take the initiative in promoting action for a
general adoption o f a bimet allic legal tender, coupled w ith the free coinage of silver,
for the reason that such action is misconstrued and may tend to retard father than
to promote the object aimed at. I t may also increase rather than diminish the dis­
credit of silver.
The reason is th is : The general conviction among the financial men in Europe
is that the U nited States Government is loaded w ith an excessive quantity of sil­
ver dollars w hich it can not get into circulation. These dollars are coined at a
standard which is at variance w ith the silver money o f any other country, to wit,
at the ratio o f 16 o f silver to 1 o f gold. I t is believed that the financial officers of
the United States are convinced that the product o f silver is excessive and that
the ratio o f silver to gold, i. e., its price as bullion, is liable to fall even lower than
it is now; therefore any initiative by the U nited States is looked upon as an attem pt
to relieve itse lf o f an unpr ofitable stock and to provide a market for the future
product o f silver. A ny effort o f the United States to promote a bimetallic treaty
and to restore the free coinage o f silver is not therefore regarded as a sincere effort
to promote a better monetary system, o f which all nations may share the benefit,
but rather as being induced by a desire to promote th e special interest of the
United States at the cost o f whom it m a y concern.
I t is utterly impossible for the thoroughly trained and intelligent statesm en of
Europe, either bim etallists or monometallists,to comprehend w hy the U nited States
should continue to coin dollars o f the present standard, of the ratio of 15.98, say
16 parts o f silver to 1 o f gold, which can not be adjusted by any treaty to the
present standard of any silver coin in circulation in other countries without the
recoinage o f European and E ast Indian coins. Therefore, when the subject of a
common legal tender is suggested the question comes up about in th is w a y : I f the
United States really mean what they propose, the coinage of Bland dollars m ust o f
necessity be stopped and the coin be withdrawn. For i f free coinage were re-es­
tablished in Europe, and a treaty o f common legal tender were made at the ratio
of 15£ to 1, and i f Bland dollars were stilt outstanding, all these Bland dollars
wouJd immediately be shipped to Europe and India, and the U nited States would
be relieved of the burden. On the other hand, the U nited States could not agree
to coin at any higher ratio than, s4^. 15£ to 1, w ithout a recoina^e on their own
part o f th e dollars now existing at the ratio of 16 to 1. A treaty is impossible ex­
cept the same ratio be adopted by all the parties thereto.

I have quoted more at length from Mr. Atkinson’s report than I
would have done except for the fact that it is, I believe, the latest
official information we have concerning the progress which the prop­
osition for international bimetallism is making in Europe. Since the
date of Mr. Atkinson’s report the final report o f the royal commission
has been made. The results arrived at were as follows, and I call
special attention to the quotations which I make from this report
for the reason that all the authorities agree that there never can be
an international agreement for the free coinage o f silver by the principalJEuropean countries at a ratio to be agreed upon until England
is ready to concur in it. W hat I quote is from Part I of the report,
under the heading of “ Conclusions.as to tbe causes of the diver­
gence in the relative value o f the precious metals.” I w ill ask the
Senator from Illinois [Mr. Cullom ] to be good enough to read it.
Mr. CULLOM read as follow s:
CONCLUSIONS AS TO THE CAUSES OF THE DIVERGENCE IN THE RELATIVE VALUE OF
THE PRECIOUS METALS.

178. W e w ill now proceed to state the conclusions to which we have been led by
a consideration of the several arguments set forth in the previous pages.

Mr. TELLER. Please state what that is.
Mr. CULLOM. “ Final report of the royal commission appointed
DOL




21
to inquire into the recent changes in the relative value of the
preeious metals.”
Mr. TELLER. What is the number o f the document ?
Mr. CULLOM. Senate Miscellaneous Document No. 34, Fiftieth
Congress, second session.
Mr. TELLER. Oa what page?
Mr.€ULLOM. Page-77.
Mr. CULLOM resumed and concluded the reading, as follow s:
179. W e have pointed out th at th e phenomena w ith w hich w e had to deal w ere
(a) extensive fluctuations and (b) a considerable fall in the gold price of silver,
which have m anifested them selves since 1873.
For forty years preceding that date there w as a difference o f only 2|(Z. be­
tw een the highest and low est annual average price o f bar silver in London. Be­
tw een 1873 and 1887 th e difference w as 14%d.
N o t only have th e variations in price covered th is greatly extended range dar­
ing the later period as compared w ith the former, b a t th e fluctuations from tim e
to tim e in th e course o f a month, or even o f a few days, have been much greater.
180. The flrst point w hich naturally in vites attention as an explanation of the
fall in th e gold price o f silver in recent years is th e large increase in the produc­
tion Qf silver, coincident w ith some diminution in the production of gold.
T he annaal average production o f the former metal, according to Dr. Soetheer’s
estimate, has increased from.1,339.085 kilograms, valued at £11,984,800, in th e five
years 1866-’70 to 1,969,425 kilograms, valued at £17,232,450, in the five years 187175, and to 2,861,709 kilograms, valued at £21,438,000, in th e five years 1881-’85;
thus show ing an increase betw een th e first and last periods mentioned of upwards
o f 100 per cent, in quantity and nearly 80 per cent, in value.
On th e other hand, according to the same authority, the annual production of
gold, w hich averaged 195,026 Kilograms, equivalent to £27,206,900, from 1866 to
1870, fell off to 173,904 kilograms, or £24,260,300, from 1871 to 1875, and to 149,137
kilograms, or £20,804,900, betw een 1881 and 1885, a diminution o f nearly 25 per
cent.
181. In addition to changes in the relative production o f th e tw o metals during
th e last fifteen years, there appears to be ground for the allegation that there has
been during that period both increased use o f gold and diminished u se o f silver
for currency, resulting from changes which were made in the currency system s
o f various countries imm ediately before or during that period.
182. The amount o f gold actually coined in Germany since 1871 has been up­
wards o f £98,000,000, o f w hich about £80,000,000 is said to represent th e new de­
mand. B ut a considerable proportion o f this new demand appears to have been
satisfied prior to or in 1872 and 1873, as th^ German coinage in those tw o years
amounted to £50,000,000; and there seems reason to believe that some portion of
th is gold w as taken from hoards o f th at m etal in France^ w hich w ere not pre­
viously in circulation.
I t is also to be observed that w hile in the years 1866-70 the U nited States re­
tained on an average £2,533,000 a year out o f their own home production, in the
period from 1871 to 1875 they exported nearly £1,500,000 in excess of th e quantity
produced in th e country in those years.
The force o f the U nited States demand did not begin to make itse lf felt un til the
middle o f th e year 1877; but since that date the use of gold in that country has
increased very largely, the value o f the metal absorbed during th e ten years 1876*85, having been £112,589,600, as against £11,196,000 in the ten years immediately
preceding.
T hese has also been a certain demand, though o f a less important character, ow­
ing to the requirements o f Italy, Holland, and th e three Scandinavian countries.
On. the w hole there can be v ery little doubt that there has been a considerable
increase in recent years in the use o f gold for purposes o f currency.
183. Turning n ext to silver, it is very difficult to estim ate th e exten t to w hich
th e use o f th is m etal has diminished in Europe and America owing to currency
changes.
N o doubt the adoption o f a gold standard in Germany diminished th e demand
for silver in that cou n try; but on the other hand therg has been a very large
coinage o f silver in the United States during th e la st ten years, amounting to up­
wards o f $300,000,000, w hile in th e ten vears preceding 1873 th e currency in that
country w as paper and but very little silver was coined.
W hen all the facts are taken into account it seems doubtful whether there has
been on th e whole any great diminution in th e use o f silver for currency purposes.
184. T he silver placed on the market by Germany since 1873 is another element
w hich m ust he taken into account. The amount actually sold and thus added to
th e supply available for th e use of th e world was not very large, but the mere fact
o f the sale and demonetization even of the amount in question would probably
tend to discredit silver, and produce an effect upon the market disproportionate
to the amount w hich was actually sold, if the latter were regarded merely as an
BOX.




addition to the supply. The sales o f the German silver, however, practically
ceased in 1878 or 1879, and this influence has therefore probably ceased to operate
directly since that date, though apprehensions o f farther supplies being thrown
upon the market may have exercised a depressing effect.

Mr. EE AGAN. May I ask the Senator whafc part of the report
that is?
Mr. DOLPH.* That is from Part I. The extract is found on pages
77 and 78 of Senate Miscellaneous Document No. 34. I w ill now quote
from page 113 of the same docum ent:
102. W e are fu lly impressed w ith a sense o f the difficulties w hich surround the
Indian Government, and o f the serious questions to w hich any proposed addi­
tional tax must give rise.
I t is not only the embarrassment which has already been caused to the Gov­
ernment of India that has to be borne in mind, but the im possibility of foresee*
ing to what extent those embarrassments may be increased and their difficulty
augmented by a further depression in the value o f silver.
W e hare no hesitation, then, in expressing the conclusion that the changes in
th e relative value of the precious m etals are causing important evils and incon­
venience to the Government of India, which are w ell worth the endeavor to remedy
them, if a remedy can be devised which could be adopted w ithout injustice to
other interests and w ithout causing other evils or inconveniences equally great.
I t m ust be remembered, however, that if the view be correct that there has
been a substantial fall in the value o f silver which has prevented th e .silver prices,
o f Indian produce being as low as they otherwise would have been, then to that
extent the Indian tax-payer has escaped the increase o f his burdens w hich would
have resulted, assum ing the taxes imposed to have remained th e same.

It w ill be observed that the commission is silent about any dis­
turbance to Great Britain. The whole inconvenience is the incon­
venience o f the Government of India, where the business o f the coun­
try is upon a silver basis, and not to the mother country. I now
quote----Mr. REAGAN. I presume that is from the report o f the six mem­
bers of the commission who opposed the silver coinage, and not from
the six who favored silver coinage.
Mr. DOLPH. The first extract I read I think was from the report
of the full commission. This is from the report of the majority of
the commission.
Mr. REAGAN. I do not know how it can be called a “ maj ority19
when the commission was six to six.
Mr. DOLPH. I now read from page 122 to see what kind o f a prop­
osition this commission would have Great Britian make to the United
States and other countries in regard to silver.
136. The real difficulty o f the present situation lies in the position o f th e Gov­
ernment of India on the one hand and o f the foreign nations whose currency con­
sists in a large part o f silver on the other. '
The nations forming the Latin Union are large holders o f silver and are greatly
interested in maintaining its value. I t is possible, moreover, that I n d ia -

Just listen to this—
I t is possible, moreover, that India, in order to obviate the difficulties from which
she at present suffers, may determine, as she has already proposed, to follow th e
example o f the Latin Union and close her mints, a measure w hich would still far­
ther depreciate the value o f silver.

That is to say, the commission thinks it is possible that India, already
upon a silver basis, may withdraw the free coinage of silver ana
close her mints to silver on account of the inconveniences she suf­
fers 1>y the depreciation of her currency.
I f th is course were adopted, the states o f the Latin Union, as large holders of
that metal, m ight be seriously aifected; and it is worthy o f consideration w hether
foreign governments—

Not Great Britain—
m ight not be approached w ith a view to ascertain whether they would open their
m ints to a greater extent than at present to the coinage of silver for a given term of
years—




23
Now, for what consideration ?
on an undertaking from India that she would not close her m ints during the
same period. In order to assist such an arrangement, w e think that part, o f the
bullion in the issue department o f the Bank o f England might be held in silver, as
permitted b y the bank act o f 1844.
W e are aware that a similar suggestion made in 1881 was not accepted, but the
possibility th at India may follow the example of the Latin Union in closing her
m ints may render the countries forming that combination more disposed to enter­
tain the proposal.

Closing this part o f the report they sa y :
188. Though unable to recommend the adoption o f w hat is commonly known as
bimetallism, w e desire it to be understood that w e are quite alive to the imperfec­
tions o f standards of value, w hich not only fluctuate, but fluctuate independently
o f each other; and w e do not shut our eyes to the possib.lity of future arrange­
m ents between nations which may reduce these fluctuations.
One uniform standard o f value for all commercial countries would no doubt,
lik e uniformity o f coinage or o f standards o f w eight and measure, be a great ad­
vantage. B ut w e think that any premature and doubtful step might, in addi­
tion to its other dangers and inconveniences, prejudice and retard progress to this
end.
W e think also th at many o f the evils and dangers w hich arise from th e present
condition o f the currencies o f different nations have been exaggerated, and that
some o f the expectations o f benefit to be derived from the changes which have
been proposed would, if such changes were adopted, be doomed to disappoint­
ment.
Under these circumstances w e have felt that the w iser course is to abstain from
recommending any fundamental change in a system o f currency under which the
commerce o f Great Britain has attained its present development.

The report of the commission does not show that there is any
present probability o f Great Britain changing her monetary policy
and agreeing to open her mints to the free coinage of silver, and w ith­
out her co-operation, as we have seen, an international understand­
ing upon the subject is impossible.
The Senator from Colorado [Mr. T e l l e r ] in his recent speech
sa id :
Mr. President, th e question presented, not for the American people alone, but
for the entire world, is w hether w e shall do business in the future as w e have
done business in the p ast or until w ithin the la st seventeen years, by the use of th e
tw o precious m etals, not made money b y law, not made money metals by the
edict o f legislative minds, not by the consent o f the merchants, but by the fiat of
th e A lm ighty when H e created these two metals. The one goes hand in hand w ith
the other. Y ou can no more dispense w ith gold than you can w ith silver. The two
are tw in metals, allied and united by the Creator for beneficent purposes of the
human race. I t is w ith th at idea that I approach this question, realizing w hat the
Senator from Nevada [Mr. J o n e s ] s o w ell said yesterday, that money is indispen­
sable to the civilized world, indispensable to the happiness o f man, and that the
number o f units regulates its value.

The Senator appears to be oblivions to the fact that there has
never been a time in the history of this country, except a short
period after the act o f 1792 took effect, when we nave been able to
retain both gold and silver in circulation, that practically our cur­
rency was silver from about 1810 to 1834, and that from 1834 to 1873
it was gold alone, and that we have coined more silver and had more
silver in circulation since 1873 than ever before. The movements of
gold and silver in this country show beyond all question that we can
not have free coinage of both gold and silver at a ratio different from
that of their commercial value and keep both in circulation.
By the act of 1785 it was provided that the dollar should be of the
h eig h t of the Spanish milled dollar.
By the act of 1792, establishing a mint and providing for the coin­
age of gold and silver, it was provided among other things that the
gold dollar should contain 24.75 grains of pure gold and that the
silver dollar should contain 37 Ingrains of pure silver. Secretary
Hamilton had recommended that the alloy of each, if I recollect cor­
DO L




24
rectly, should he one-twelfth. That was the alloy fixed for the gold
coin, but for the silver coin the alloy adopted was about one-ninth of
the whole mass, so that a silver dollar coined under the act of 1792
weighed 416 grains, and the ratio of the two metals was as 1 to 15.
Secretary Hamilton, in submitting the plan for the organization of
the mint and the coinage of gold*and silver, expressed a decided
preference for gold, on account of its alleged greater stability o f
value, but he suggested that inasmuch as the United States was a
new country and the silver of Mexico and South America was more
accessible, we might more readily supply ourselves w ith a sufficient
currency by the adoption of silver. He, however, undertook to sub­
mit to Congress a ratio of the then commercial values of the two
metals.
He confessed his inability, for want of time and sources of informa­
tion, to ascertain what the relative value of the two metals was in '
the commercial countries of Europe. He therefore proceeded to in­
quire and to report as to the ratio of the commercial value o f gold
and silver in the United States. Fortunately the ratio selected,
which was 1 to 15, was very nearly the ratio between the commer­
cial values of gold and silver in European countries at that time.
The difficulty which was afterwards experienced under the system
was due to the fact that silver was then slowly depreciating and
continued to depreciate in value.
Mr. TELLER. What was the date of that t
Mr. DOLPH. Seventeen hundred and ninety-two. As early as
1803 in France, by a decree of the First Consul, Napoleon, the ratio
for coining purposes between gold and silver was fixed at 1 to 15£.
This accelerated the downward tendency of the price of silver, and
as early as 1^10 silver had become so much overvalued by the ratio
which had been fixed by the act of 1792 that gold had already begun
to leave the country.
In 1816 Great Britain adopted the gold standard. In 1819 she re­
sumed specie payments, which had been suspended since the Revo­
lution, and created a new demand for g o ld ; and by 1820 gold had
disappeared from this country and silver had become our currency
as exclusively as if our mints had not been open to the coinage of
gold.
This continued to be the case until 1834. In the mean time com­
mittees of Congress were inquiring into the cause of the exportation
of gold from this country. In 1805 President J efferson, who had been
in favor of the plan reported by Secretary Hamilton and of the
coinage of the two metals at the ratio o f 1 to 15, finding that gold
was leaving the country and that the silver dollars of our coinage
were being sent to the West Indies to purchase Spanish milled dol­
lars fof recoinage in our mints, suspended the coinage of the silver
dollar without authority o f law, but his act seems to have been ac­
quiesced in by Congress and the country, and no more silver dollars
were coined until 1836.
Mr. COCKRELL. I f it would not interrupt the Senator from Ore­
gon, I should like to ask him in what way President Jefferson sus­
pended the further coinage o f the silver dollar, whether it was by
proclamation, or order, or anything of that kind f
Mr. DOLPH. I can state the fact that the coinage of the silver dol­
lar was suspended by President Jefferson. It is an historical fact.
It appears in numerous reports o f committees and in works upon
finance. It was undoubtedly done without any statute authoriz­
ing it. I do not understand that there was any proclamation. It
was done, I suppose, by direction to the Director of the Mint to cease
the coinage; and, as a matter of fact, equally well authenticated
DOL




25
and shown by the reports of the Treasury Department, no silver dol­
lars were coined from 1805 up to 1836.
Mr. COCKRELL. Mr. President----The PRESIDING- OFFICER (Mr. A l d r i c h in the chair). Does
the Senator from Oregon yield to the Senator from Missouri ?
Mr. DOLPH. I do.
Mr. COCKRELL. The reason why I asked the question in regard
to that statement was because I have the official reports made by
committees o f Congress after 1820, in which they make the state­
ment expressly that silver was coined up to 1821; that is, it was in
circulation I do not know about when it was coined, but it was in
circulation.
Mr. DOLPH. I do not know but that it is as good a time now as
ever to submit and incorporate in my remarks a table, which is en­
tirely authentic, showing the coinage o f gold and silver from the or­
ganization of the United States mints, in 1792, to 1884. If I had the
material to do it, I should bring it down to date. Of course that
would show a very large additional coinage of silver under the Bland
act.
Coinage of gold and silver from the organization of the United States
Mint to 1884.

Tears.

1793-1795.
1796..........
1797.'........
179 8
179 9
180 0
1801..........
1802...........
180 3
180 4
180 5

Silver dol­
lars.

Total silver
coinage, in­
cluding dol­
lars.

$204,791
72,920
7,776
327,536
423,515
220,920
54,454
41,650
66,064
19,570
321

$370,683.80
79,077.50
12,591.45
330.291.00
423.515.00
224.296.00
74.758.00
58.343.00
87.118.00
100.340.50
149.388.50

$71,485.00
102.727.50
103.422.50
205.610.00
213.285.00
317.760.00
422,570. 00
423.310.00
258.377.50
258,642. 50
170.367.50

471.319.00
597,448.75
684.300.00
707.376.00
638.773.50
608.340.00
814, 029.50
620.951.50
561, 687.50
17,308.00
28,575.75
607, 783.50
1,070,454.50
1,140,000.00
501,680.70
825,762.45
805.806.50
895, 550.00
1, 752,477.00
1, 564, 583.00
2, 002, 090.00
2.869.200.00
1, 575, 600.00
1,994, 578.00
2.495.400.00

324.505.00
437.495.00
284.665.00
169.375.00
501.435.00
497.905.00
290.435.00
477.140.00
77,270.00
3,175.00

Total gold
coinage.

1,439,517
1806..
1807..
1808.t
1809..
1810..
1811 .
3812..
1813..
1814..
1815..
1816..
1817..
1818..
1819..
1820..
1821..
1822..
1823..
J824..
1825..
1826..
1827..
1828..
1829..
1830..




242.940.00
258.615.00
1,319,030.00
189.325.00
88.980.00
72.425.00
93,200. 00
156,385. 00
92.245.00
131.565.00
140.145.00
295,717.50
643.105.00

26
Coinage of gold and silver from the organization of the United States
Mint to 1884—Continued.
Tears.

1831.
1832.
1833.
1834.
1835.
1836.
1837.
1838.
1839.
1840.
1841.
1842.
1843.
1844.
1845..
1846..
1847.
1848.
1849..
1850..
1851..
1852..
1853..
1854..
1855..
1856..
1857..
1858..
1859..
1860..
3861..
1862..
1863..
1864..
1865..
1866..
1867..
1868..
1869..
1870..
1871..
1872 .
1873..
1874..
1875..
1876.;
1877..
1878..
1879..
1880..
1881..
1882..
1883..
1884..

Silver dol­
lars.

$1,000
300
61,005
173,000
184, 618
165,100
* 20,000

24, 500
169, 600
140,750
15, 000
62,600
47.500
1,300
1,100
46,110
33,140
26,000
63.500
94,000
288,500
600,530
559,900
1,750
31,400
23,170
32,900
58,550
57,000
54,800
231,350
588,308,
657,929
1,112,961
977,150

8,573,500
27,227,500
27,933, 750
27, 637,955
27,772,075
28, 111, 119
28,099,930

T otal silver
coinage, in ­
cluding dol­
lars.

Total gold
coinage.

$3,175,600.00
$714,270.00
2.579.000.00
798.435.00
2, 759,000.00
978.550.00
3.415.002.00
3.954.270.00
2.186.175.00
3.443.003.00
3, 606,100.00
4,135, 700.00
2.096.010.00
1,148,305. ,00
2.333.243.00
1.809.595.00
2.176.296.00
1.355.885.00
1.726.703.00
1.675.302.50
1.132.750.00
1.091.597.50
2.332.750.00
1.834.170.00
3.834.750.00
8.108.797.50
2.235.550.00
5.428.230.00
1.873.200.00
3.756.447.50
2.558.580.00
4.034.177.50
2.379.450.00 20.221.385.00
2,040,050. 00
3.775.512.50
2,114, 950.00
9,007, 761.50
1, 866, 100. 00 31.981.738.50
774.397.00 62.614.492.50
999.410.00 56.846.187.50
9.077.571.00 39.377.909.00
8.619.270.00 25.915.918.50
3.501.245.00 28.977.968.00
5.135.240.00 36.697.768.50
1.477.000.00 15.811.563.00
8, 040,730.00 30.253.725.50
6.187.400.00 17.296.077.00
2.769.920.00 16.445.476.00
2.605.700.00 60.693.237.00
2.812.401.50 45.532.386.50
1,174,092. 80 20,695, 852.00
548,214.10 21, €49, 345.00
636.308.00 25.107.217.50
680,264.50 28.313.945.00
986, 871.00 28.217.187.50
1.136.750.00 18.114.425.00
840, 746.50 21,828, 637.50
1.767.253.50 22.257.312.50
1,955,905.25 21.302.475.00
3,029,834.05 20.376.495.00
2.945.795.50 35.249.337.50
5, 983,601.30 50.442.690.00
10,070,368.00 33.553.965.00
19,126, 502.50 38.178.962.50
28,549, 935.00 44.078.199.00
28.290.825.50 52.798.980.00
27,227, 882.50 40.986.912.00
27.942.437.50 56,157, 735.00
27.649.966.75 78.733.864.00
27.783.388.75 89.413.447.50
28, 835,470.15 35,936, 927.50
28, 773,387.80 27.932.824.00

This table shows that from 1773 to 1805, inclusive, there were coined
o f silver dollars $1,439,517, and that no further coinage o f silver dol­
lars was had until 1836; that in 1836 $1,000 were coined; that there
was no coinage of silver dollars in 1837 or in 1838; that in 1839 but
300 silver dollars were coined; and that the total coinage of silver
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27
dollars until the free coinage o f the silver dollar was withdrawn in
1873 was, as is 'stated by the Secretary of the Treasury, something
over $8,000,000.
Another interesting fact appears from this table, and that is that
from 1873, when the tree coinage of the silver dollar was withdrawn
by Congress, up to and including 1877, five years, there was more
silver coined in the United States, fractional coin, of course, to re­
deem the fractional currency, than had been coined in the United
States of all coin for twenty-five years previously, when there was
free coinage of silver.
As I have already stated, by the ratio fixed by the act of 1792 gold
became under value early in the nineteeth century.
Mr. REAGAN. W ill the Senator allow me to interrupt him for a
moment ?
Mr. DOLPH. Certainly.
Mr. REAGAN. I hold in my hand a table contained in the Ameri­
can Almanac for 1884, prepared by Mr. Spofford, who is considered a
very careful authority on such subjects, giving the total coinage of
the United States mints from 1793 to 1883, inclusive, and it show.s
that in 1793-1795 there were $370,683.80 coined.
Mr. DOLPH. That included the fractional coin* as w ell as the sil­
ver dollar?
Mr. REAGAN. Minor coin, $11,373.
Mr. DOLPH. Minor coin, but not fractional coin.
Mr. REAGAN. Then in 1796, the next year after that, the coinage
was $79,077.50; the minor coin, $10,324.40. In 1797 the coinage was
$12,591.45, and of minor coin the coinage was $9,510.34. In 1798 the
silver coinage was $330,291, with the minor coinage added; and then
the next year, 1799, it was $423,515. In 1800 it was $224,296; and it
goes on consecutively, giving the amount of coinage each year from
that time down, and without a break.
Mr. DOLPH. I have submitted a table, showing the amount of
silver coinage for those years, and vouch for its correctness. So far
as the coinage of the silver dollar is concerned, the table corresponds
exactly w ith the statements made by every Secretary o f the Treasury
since I have been iji the Senate, as to the amount o f silver dollars
eoined during that time. I do not suppose Mr. Spofford means by
minor coins fractional coins. I f he means fractional coins he is in­
correct. I w ill explain to the Senator from Texas. Under the act
o f 1792 the fractional coins contained the same amount o f silver in
proportion to the value they bore to the dollar that the silver clollar
did. That is to say, tw o half-dollars in silver contained 371^grains
o f pure silver; four quarter-dollars contained the same amount of
silver, and so did ten dimes. That is the reason why, after the ratio
was changed in 1834 and silver in turn was expelled from the coun­
try, the fractional coin went w ith the silver dollar.
Mr. REAGAN. I presented this for the purpose, as I remembered
it (I sent for it because I did so remember it),o f showing, if this
table is authority—and I do not know who is going to question Mr.
Spofford’s authority on such a subject—that Mr. Jefferson never sus­
pended silver coinage.
Mr. DOLPH. The trouble with the Senator is that he does not dis­
tinguish between minor coin and fractional coin. Minor coins and
fractional coins are entirely different. Our minor coins, at the pres­
ent time, are the one, two, and five cent pieces. Our fractional coins
are the half-dollars, the quarter-dollars, and the dimes.
Mr. REAGAN. It may be that the Senator is to this extent right,
that there were very many more half-dollars coined than dollars,
DO L




28
becavse by our law tbe Mexican dollar, the Spanish milled dollar,
was also a dollar, and it may be that we used that as our dollar, and
very largely coined half-dollars. But the point I made is in an­
swer to the general statement that Mr. Jefferson had suspended sil­
ver coinage, which I lake it can not have been the case.
Mr. DOLPH. I did not make the statement that President Jeffer­
son had suspended silver coinage. I said President Jefferson sus­
pended the coinage of the silver dollar, and I have documents here,
if it is disputed, to show that it has been stated officially by more
than one committee of Congress.
Mr. REAGAN. I stand corrected.
Mr. DOLPH. The table which I presented shows that not a silver
dollar was coined in this country from 1805 to 1836.
The mints of France being open at least as early as 1803 like our
own to all comers at a fixed ratio of 1 to 15.5, the exportation of gold
from the United States was profitable, and the United States lost
their gold, and, while the arrangement for the free coinage o f both at
a fixed ratio was in law what is now termed bimetallism, in fact silver
was the only money of this country. In 1834 the United States
sought to recall gold, and changed the ratio by reducing the amount
of pure gold in the gold dollar t o 2 3 . 2 grains. The amount of pure
silver in a dollar was unchanged. This made the ratio between gold
and silver for coinage purposes about one to sixteen. Gold was over­
valued for the purpose of securing it as a circulating medium, w ith
little care whether silver was retained or not.
The debates during the passage of that bill through both Houses
of Congress show that it ought to have been understood and was
understood by the most intelligent members of both Houses that un­
der the ratio established by the bill silver would be expelled from
the cou ntry and gold would be retained; and such was the fact. Under
the act of 1834 the condition o f things m this country was precisely
reversed.
France and other European nations continued free coinage of both
metals at the ratio of 1 to 15.5, and that ratio being more favorable to
silver than ours there was a profit in exporting silver, and the United
States began to lose its silver circulation and gold became the actual
currency of the country.
The act o f1837 changed the amount o f alloy in both gold and silver
coins to one-tenth, so that the coins were .900 fine. This reduced the
w eight of the silver dollar to 412£ grains.
Two-tenths of a grain of pure gold was added to the eagle, so that
24.22 grains of pure gold was contained in a dollar under the act of
1837.
Under the ratio established by the acts of 1834 and 1837 even our
fractional silver coins, which, as I have said, contained relatively the
same amount of pure silver as the silver dollar, were driven from the
country. We had no money for change. The situation demanded
the attention of Congress, and in 1853 an act was passed reducing
the amount of standard silver in the fractional coin, half-dollars,
quarter-dollars, and dimes, so that, it would be unprofitable to ex­
port them and they would remain in the country.
The ratio adopted by the act o f 1853 between our fractional coins
and gold was 14.88 to 1, which was an overvaluation of silver, and
as a consequence the subsidiary coin provided under this act re­
mained at home.
The debates during the passage of the act of 1853 show that gold
was our only currency, that there was no expectation of securing
any circulation of silver, except fractional coins, and no attempt to
fix a ratio between the two metals which would secure the circula­
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29
tion of both. The free coinage of fractional coin was withdrawn by
the act, although it was afterwards restored by the arbitrary act
of some Secretary o f the Treasury in violation of the statute.
The mints were still open for the coinage of silver dollars, but
few were coined, and what were coined left the country.
As stated by Secretary Windom, the total amount of gold dollars
coined from 1852 to 1873 was only $8,045,838, and this had disap­
peared from circulation in 1873.
To substantiate what I say about silver having driven out gold
prior to 1834 and gold having driven out silver after that date,
and as to the intention of Congress in passing the acts of 1834 and
1853,1 w ill quote from the reports of committees and speeches in
Congress during the passage o f those acts.
I w ill first quote from the report of Mr. Mr. C. P. White, who was
at that time the chairman of the House committee having the bill
in charge and was authority upon questions of finance. I w ill ask
the Secretary to read what I have marked in the volume which I
send to the desk.
The Secretary read as follow s:
Upon matured deliberation, the committee can not. doubt the correctness of the
following general principles in regard to money, corroborated by the history o f
commercial nations and recorded in their former report:
F irst “ That gold or silver is th e only sound, invariable, and perfect currency
that human wisdom has y e t devised.”
Second. “ That every nation will possess its equitable and useful portion of the
old and silver used as money, if they do not repulse it from domestic circulation
y substituting a different medium o f exchange.”
Third. “ That one m etal may be’ selected w ith a certain assurance o f finding in
th e metal chosen such proportion o f the entire amount o f the money o f commerce
as their exchangeable commodities bear to the total amount of merchandise pro­
duced.”
Fourth. “ I f both m etals are preferred, the like relative proportion o f the ag­
gregate amount o f the metallic currency w ill be possessed, subject to frequent
changes from gold to silver and vice versa, according to the variations in the rela­
tiv e value of these metals.”
T he committee think that the desideratum in the monetary system is a standard
o f uniform v a lu e ; th ey can not ascertain that both m etals have ever circulated
simultaneously, concurrently, and indiscriminately in any country where there
are banks or money d ealers; and they entertain the conviction that the nearest
approach to an invariable standard is its establishm ent in one metal, which m etal,
shall compose exclusively the currency for large paym ents.
Impressed w ith the accuracy and practicability o f the principles and view s de­
tailed, the committee do not conceive it to be of much importance, abstractly con­
sidered, w hether “ gold be a tender in large and silver a legal tender in small pay­
ments, or the reverse.” The money o f England for large transactions is gold;
that of France is in practice silv e r ; and the prosperity o f these nations, under dif­
ferent systems, exemplifies that skill, industry, and capital are the active and
efficient causes of producing w ealth.

f

Mr. DOLPH.

I also read from page 11 of the same report:

A lthough the committee have recommended the standard of value to be regu­
lated in silver alone, th ey are not insensible o f the u tility of using gold coins also;
but their convenience can not be obtained w ithout hazarding the loss o f silver as
the chief measure o f value, unless gold be subjected to a seigniorage and restricted
to small payments. This course is analogous to the money system of England,
and the oniy means yet practiced by which coins o f both m etals can be freely pro­
cured and permanently maintained in general circulation.

I also ask to have read, the closing portion of the report.
The Chief Clerk read as follow s:
T he committee have carefully collated the diverse opinions of many writers of
great distinction and celebrity upon this complicated and controvertible subject,
and having engaged in its exam'nation w ith unprejudiced minds, and an earnest
desire to arrive at ju st view s of general principles, and of their beneficial adapta­
tion to the peculiar circumstances o f the United States, they w ill now conclude
their report w ith a recapitulation o f the result o f their deliberations and investi­
gations.
F irst. T hat the operations o f commerce will assuredly dispense to every country
DOL




30
its equitable and useful proportion of the gold and silver in currency, if it is not
repuised by paper or subjected to legal restrictions.
Second. That it can not be o f essential importance to any State whether its pro*
portion of the money o f commerce thus distributed consists of gold, 01 o f silver,
or of both metals, it being the instrum ent of exchange, but not the commodity
really wanted.
Third. T hat, there are inherent and incurable defects in the system which
regulates the standard o f value in both gold and silver, its instability as a meas­
ure of contracts, and m utability as the practical currency of a particular nation,
are serious imperfections, w hilst the im possibility o f maintaining both metals
in concurrent, simultaneous, or promiscuous circulation appears to be clearly
ascertained.
Fourth. That the standard being fixed in one m etal is th e nearest approach to
invariableness, and precludes the necessity of further legislative interference.
Fifth. T hat gold and silver w ill not circulate promiscuously and concurrently
for similar purposes o f disbursement, nor can coins o f either metal be sustained
in circulation w ith bank-notes possessing public confidence, o f th e lik e denomina­
tions.
Sixth. T hat i f the national interest or convenience should require th e perma­
nent use o f gold eagles and their parts and also o f silver dollars, the issue o f bank
bills o f one, two, three, five, and ten dollars must be prohibited.
Seventh. That, if it should hereafter be deemed advisable to maintain both gold
and silver coins in steady circulation, and to preserve silver as th e m easure of
commerce and of contracts, gold must be restricted to small paym ents.
Eighth. That, if it is the intention to preserve silver as th e principal measure of
exchange permanently and securely, it w ill be necessary to estim ate the relative
value o f gold under its present average or probable future value in general
commerce.
Influenced b y these considerations, the committee recommend that the standard
value o f gold bet regulated according to the ratio o f 1 o f gold for 15 tW c of silver,
and that the portion of alloy hereafter used in coinage be established at onetenth.
Grains
Grains
fine gold, standard gold.
The gold eagle to contain...................................................___ 237.6 =
264

Mr. DOLPH. I also ask to have read a short extract from the re­
port of Mr. Lowndes, from the Senate Committee on Currency, made
on the 2d of February, 1821, for the double purpose o f showing that
at that date gold had already left the country and the reason for it.
The Chief Clerk read as follows:
T he committee report—
That they are o f opinion the value o f American gold, compared w ith silver,
ought to be somewhat higher than bylaw atp resen t established. On inquiry th ey
find that gold coins, both foreign and of the United States, have, in a great measure,
disappeared, and from the best calculation that can be made there is reason to ap­
prehend they w ill be w holly banished from circulation, and it ought not to be a
matter of surprise, under our present regulations, that this shoulcT be the case.
There remains no longer any doubt that the gold coins o f the U nited States are,
by our laws, rated at a value lower than in almost any o(her country, in compari­
son w ith that o f silver. This occasions the gold to be constantly selected, when it
can be obtained, in preference to silver, whenever required for rem ittance from
this to foreign countries and, at th e same time, prevents those who have occa­
sion to remit to the U nited States from doing it in gold. Hence, there i^ a con­
tinual and steady drain o f that metal from th is country w ithout any correspond­
ent return, which must continue while there remains any of it among us. The
im portations of it w ill be confined to small quantities, and from countries from
which nothing better can be obtained.
There have been coined at the M int of the U nited States nearly $6,000,000 in
gold. I t is doubtful whether any considerable portion of it can, at this time, be
found w ithin the U nited States.

Mr. DOLPH. I also incorporate in my remarks certain extracts
from the report of the Secretary of the Treasury in compliance w ith
a resolution of the Senate of the 29th of December, 1828, respecting
the relative value of gold and silver:
W hatever causes affect the relative values o f gold and silver m ust have first
aftected th e absolute or intrinsic value o f one or both of th em ; and hence every
inquiry as to th e former necessarily involves th e latter. T he quantity o f labor ap­
plied under all the variety o f circumstances of soil, climate, etc., w hich eh ter
into th e production o f any given article constitutes one principal measure of its
value. B ut labor alone can'not determine the value o f a p r o d u ct; that w hich is
DOL




31
not suited either to the real or imaginary wants o f man ean have no value in his
estimation, whatever^nay have been the amount o f labor required for its pro­
duction. Hence another measure o f value is to be sought in the adaptation of
the product to th ese wants.
The aggregate of causes which control the value of these measures, i espectively,
is comprehended in the terms supply and demand, w hich alone regulate and estab­
lish the intrinsic as w ell as relative values of all exchangeable articles. Those o f
gold and silver are governed by the same general law s w hich determine the values
o f other products ; out public necessity having required th e establishment of some
standard measure in w hich contracts may be made and exchanges regulated be­
tw een communities, the precious metals have, by general consent, been adopted as
the most fit material for this purpose. This application o f these m etals where tw o
or more are used as standard measures of property, gives them a quality which
does not necessarily belong to articles of commerce. I t subjects their value to the
influence o f political regulations, whereby the demand may be increased or di­
minished for the one or th e other, and their relative values changed according to
the interests or caprices of governments. B ut th is effect is also controlled by the
same general considerations which determine the value o f aH other articles enter­
ing into the purposes of human economy, namely, supply and demand, and the val­
ues thus ascertained are the result o f the public judgm ent made up by the com­
bined intelligence o f all those who best understand the real state o f the market.

*

*

*

*

*

*

*

The act o f Congress o f A pril 2.1792, establishing the M int and regulating the
coins Of th e TJnited States, fixes th e w eight o f the eagle at 247£ grains o f pure
gold, or 270 grains o f standard gold, equal to U parts fine; and the w eight o f the
dollar at 3 7 grains o f pure and 416 grains or standard silver, equal to H ff parts
fine. I t m ay be remarked that, when the United States dollar w as established at
375fA grains pure silver, and the eagle at 246^% grains o f pure gold, the propor­
tional value o f gold to silver was 1 to 15.253. A t that tim e the ounce o f standard
silver in England,
fine, or 444 grains pure, w as valued at the m int at 5s. 2d., and
th e ounce o f standard gold, H fine, at 31. 17s. 10M.; hence th e relative value of
gold to silver w as 1 to 15.209, nearly the same w ith th at proposed b y the resolu'tion o f 1786. B ut the w eight o f the United States dollar was supposed to be greater
than that o f th e later coinage o f Spanish dollars, and hence the reduction o f it,
b y th e act of 1792, to 371£ grains, which, it appears from the report of the Secre­
tary o f th e Treasury, w as intended to be an average o f the w eight o f the Spanish
dollars then m ost cnrrent. The relative value o f gold .to silver, as fixed by the
same act, w as also founded on a supposed average o f th e relative values o f those
metals, as established amongst the principal commercial nations. B ut it does not
a|>pear for w hat reason th e fineness o f the silver w as varied in that act from to
I t is, however, not improbable that in fixing the ratio o f gold to silver as 1 to 15,
the mint regulations o f other countries were referred to. rather than the market
prices.; and as silver has not been made a general tender nor is it extensively
coined in England, the m int regulations of that country bear but a remote relation
to the actual market value o f silver, and were not to be relied upon as any guide
in ascertaining the new ratio. Since the establishm ent o f the ratio between gold
and silver in the U nited-States, various causes have contributed to lessen the
comparative demand for silver. T hat which has the most direct influence upon
it is the revolution in the India trade; some of the chief manufactures of that
country are no longer consumed in the United States and England pays for her
whole consumption o f India fabrics o f her own manufacture.

*

*

*

*

*

*

*

Each nation has, however, a relief w ithin its own power from all the evils in­
cident to the regulation of the relative value of the metals used for current coins,
which is to have one standard measure of property. Great Britain has, after a
series o f experiments for some centuries, in vainly endeavoring to adjust the rel­
ative values o f gold and silver, come to this conclusion, in theory at least, and
adopted gold as th e proper standard. France maintains both gold anti silver in
circulation w ith tolerable su ccess; but her currency is not merely founded on a
specie b a sis; it is essentially a specie currency, having virtually no bank paper to
interfere w ith it. N ecessity for both metals, in due proportion, keeps up a regular
demand for them, w hich is so extensive as in a great measure to control their rel­
ative values.
The policy o f the United States in changing the ratio from gold to silver in the
coins may be governed by the probability o f effecting such an adjustment as will
permanently maintain both m etals in general circulation; or, if this be doubtful,
by the preference to be given for the one or the other as a principal medium for
currency.

*

*

*

*

*

*

*

I t seems very clear from these facts, to which many others o f later date m ight
be added, that, however exactly th e proper equilibrium o f values of- gold and silver
may be adjusted at the mint, the balance is kable to be disturbed by causes which
can neither be anticipated nor controlled by political power. I f the regulation be
DO L




32
founded on the m ost ex a ct calculation o f relative values for th e tim e being, the
vibrations o f the values o f gold and silver m ust alternately cause the expulsion o f
each; and where one metal is more essential to public convenience than the other,
the adjustment which exposes that under any circumstances to general exporta*
tion or melting may become a greater evil than a regulation which constantly ex­
cludes from circulation the less desirable coin.

I also quote from the remarks o f Mr. Clowney in the House of
Representatives June 21, 1834, while the act o f 1834, changing the
ratio between gold and silver coin, was under consideration. I read
from volume 10, part 4, of the Congressional Debates, page 4649. Mr.
Clowney sa id :
In these view s Mr. Gallatin and Mr. Baring, the most experienced and distin­
guished financiers of the age, perfectly agree. They admit the fact, upon w hich
the gentleman from N ew York [Mr. Selden] has so much relied, tha^t when the
coins of the tw o metals are placed upon an equal footing in the paym ent o f debts
a change in their relative market value would produce a change in their relative
legal value, and that that m etal which becomes the cheapest w ill drive th e other
from circulation and become alone the practical standard and currency. The truth
o f this theory has long since been clearly exemplified in the history o f th e mone­
tary system o f England, and also in the monetary system o f th ese U nited States.
Although, by our C onstitution and laws, gold is regarded as money and is made
a legal tender, the same as silver, in the paym ent o f debts, yet, in consequence of
the v ast difference in the value o f gold at our mint, compared w ith its relative
value to silver in general commerce, it has long since departed from the U nited
States, leaving silver the only metallic currency.

I also quote from a speech made by Mr. Gorham in the House of
Representatives on the same day upon the same bill. Mr. Gorham
said:
The gold at present in circulation was obtained from tw o sources, one in R ussia
and the other in oar own Southern States. T hat from E ussia was found in the
Ural Mountains, w hence from one to three millions sterling worth was obtained
annually, while about a million and a half w as obtained here. A n increase in this
latter source m ight go to make gold cheaper, but it would be better not to legislate
until the price o f gold should go down. The ratio o f 16 to 1 had never been estab­
lished by the legislation of any nation but Spain, and it was unquestionably above
th e true value. It m ight be asked how w e were to get. the true value? The an­
sw er he should give was, go into the great market o f the com m odity; there the
average of demand and supply would be accurately fixed, and there only. That
average, in England, was at present 15.771 to 1. In France it was 15.68 to 1. H ere
in the United States it was only 15.63 to 1. The medium o f these three rates would
be 15.731 to 1. To appeal from these great marts to the standard o f th e Spanish.
Grovermfient was futile. I f that G-overnment chose to say the rate should be 16 or
18 to 1, it could do so; but it would be a mere arbitrary dictum, w ithout any real
effect in practice.

I also quote from the remarks made by Mr. Gillet on the same day.
He sa id :
In every point in which he had view ed th is subject he deemed it our duty so
to shape this bill as to g ive the country, as far as possible, a gold currency.

Mr. Binney said:
The honorable chairman had never supported nor suggested such a ratio in
any o f his reports. In one o f them he had said that ‘*the ite r a tio n in th e quantity
o f gold representing $10, from 247£ grains to 233£ grains” (and the proposed alter­
ation was still greater by 1$ grains), “ was an actual reduction of 6 per cent, from
th e previously existing and long prevailing measure ot contracts,” and he had ad­
m itted th e ju stice o f the remark, that “ such a change could not be made w ithout
disturbing the balance o f intrinsic value, and making every acre of land, as w ell as
every bushel o f wheat, o f less actual worth than in tim e past. ” He had also stated
it as the final opinion of th e committee that the rate proposed by the Secretary
o f th e Treasury of 1 o f gold for 15.625 o f silver, was the utm ost lim it to w hich the
value could be raised, w ith a due regard to a paramount interest, the preserva­
tion o f our silver as the basis o f circulation.

I read this to show that while some members stated that the ob­
ject of the bill was to secure gold as a currency, the House was
warned that the change in 1834 of the ratio would drive out silver
and give us gold only. Mr. Binney continued:
The whole mass o f reports might be considered as mainly intended to show
“ th at the standard o f value ought to be legally and exclusively, as it w as practic­
ally, regulated in silver.”
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Mr. Gorham on the same day in the same debate said:
The House was going to make gold cheaper than silver, and the necessary re­
su lt m ust be that the, gold would be retained and th e silver sent abroad. The cost
o f carrying tw o kinds o f specie being the same, a man going abroad would, o f
course, take that kind in preference which would bring him the most where he was
going; and if there w as even a small difference, it would be sufficient to determine x
its choice. H e had offered a proposition which he believed would m eet and ob­
viate the difficulty and keep both metals among us. U nless some such expedient
should be adopted, he was very certain that th e silver would shortly disappear
and that nothing but gold would get into circulation; and then ju st the same
difficulty would occur w ith gold as did now respecting silver.

,Mr. McKim sa id :
H e thought the ratio o f 16 to 1 certainly too high; he believed 15.825 would be
a better standard, but if it was found that th ey had gone a little over the mark
it was a m atter that m ight be easily regulated. The effect, in the meanwhile,
would be to extend some encouragement to our gold mines at the South. The ex­
portation o f gold at present v as a regular trade, and the effect was to injure men
o f small capital. Another result o f th e bill would be to drive out the circulation
o f bank-notes to a certain degree, w hich perhaps, would not be a bad thing. B ut
he hoped the half-and-half plan o f th e gentlem an from M assachusetts would not
be adopted.

Upon the passage o f this bill Mr. Adams said.:
H e should vote in thfc affirmative, though he did it very reluctantly and in the
hope that the ratio would be amended elsewhere. H e considered it as decidedly
too h ig h ; but as the bill was a v ery important one he should not oppose its pas­
sage.

Mr. HOAR. Was that John Quincy Adams?
Mr. DOLPH. It was Mr. Adams in the House in 1834.
Mr. HOAR. It was John Quincy Adams ?
Mr. DOLPH. I suppose so*
Mr. W ilde admitted that b y th e existing law gold w as undervalued, but by
th is bill it would be so greatly overvalued that of the tw o he should prefer the
old law.

To the same effect, for the purpose o f showing that Congress knew
or ought to have known that by the change of the ratio of the two
metals by the act of 1834 the situation in the United States would
be reversed and that silver would be expelled from the country as
gold had been under the operation of the act of 1792, I quote from
Benton's Thirty Years in the United States Senate, from a speech
made by Mr. Benton upon the same bill. I w ill ask the Secretary
to read this extract.
The Chief Clerk read as follow s:
In th e third place Mr. B. undertook to affirm, as a proposition free from dispute
or contestation, th at the value now set upon gold by th ela w s o f the U nited States
w as unjust and erroneous; that these law s had expelled gold from circulation,
and that it w as the bounden duty o f Congress to restore that coin to circulation
by restoring it to its ju st value.
That gold was undervalued b y the law s o f the U nited States and expelled from
circulation, w as a fact, Mr. B. said, which everybody k n e w ; but there w as some­
thing else which everybody did not know, w hich few, in reality, had an opportu­
nity of knowing, but which w as necessary to be known to enable the friends o f
gold to go to work at the right place to effect the recovery o f that precious metal
which their fathers once possessed; which the subjects o f European kings now
possess; which the citizens o f th e young republics to th e south all possess; which
even the free negroes o f San Domingo possess, but which the yeomanry of this
America have been deprived o f for more than tw enty years, ana w ill be aeplived
o f forever unless they discover th e cause o f the evil and apply the remedy to its
root.

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A

Mr. Secretary Hamilton, in his proposition for the establishm ent of a mint, rec­
ommended that the relative value o f gold to silver should be fixed at 15 for 1, and
and that recommendation became th e law o f the land, and has remained so ever
since. A t th e same time, the relative value o f these m etals in Spain and Portu­
gal, and throughout their vast dominions in the N ew W orld, whence our princi­
pal supplies o f gold were derived, was at the rate of 16 for 1; thus making our
standard 6 per cent, below the standard of the countries which chiefly produced
gold. I t was alsu below the English standard and the French standard, and bedol ----- 3




34
low the standard which prevailed in these States before the adoption o f the Con­
stitution, and which was actually prevailing in th e States at the tim e that this
new proportion of 15 for 1 was established.

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Mr. Secretary Hamilton, in his proposition for the establishm ent o f a mint, ex­
pressly declared that the consequence o f a mistake in the relative value of thd tw o
m etals would be th e expulsion o f the one that was undervalued. Mr. Jefferson,
then Secretary o f State, in his contemporaneous report upon foreign 6oins, de­
clared the same thing. Mr. R obert Morris, financier to the Revolutionary Gov­
ernment, in his proposal to establish a mint in 1782, w as equally explicit to the
same effect. The delicacy o f the question and the consequence o f a mistake were
then fully understood forty years ago, when the relative value of gold and silver
w as fixed at 15 to 1.

Mr. DOLPH. I now quote from the debates during the considera­
tion of the bill of 1853 for the purpose of showing, first, that the re­
sult of the change of the ratio between gold and silver for coinage
purposes in 1834 had been precisely what had been predicted for it,
and, in the second place, to show that Congress was then satisfied
w ith a gold standard and, making no effort to remedy the fault o f the
act of 1834 and to secure a return of silver, was only intent upon se­
curing the fractional coin for .purposes of change; that they thor­
oughly understood that at that time gold was the standard in this
country and believed it was impracticable to secure the circulation
o f both gold and silver by legislation.
I send to the desk the Appendix to the Congressional Globe, second
session of the Thirty-second Congress, and ask.the Chief Clerk to read
certain portions which I have marked of a speech by Hon. C. L. Dun­
ham, of Indiana. Mr. Dunham was chairman of the House commit­
tee having the bill in charge, and made a very elaborate and exhaust­
ive speech upon it.
The Chief Clerk read as follow s:
The proposed change in the small silver coins is to reduce the w eight of the
half dollar from 206£ grains, the present w eight, to 192 grains, and the quarters,
dimes, and half dimes in proportion, leaving the metal at the present standard of
fineress. This w ill make the intrinsic valued of. these coins 6.91 per cent., not
quite 7 per cent, less than the value o f the present ones, and w ill make their
relative value to our gold coins about w hat it was prior to th e passage of the
act of 1834, as that act reduced the intrinsic value o f th e latter 6.681 per cent.
This reduction is rather more than the present difference between the nominal and
intrinsic or market value of our silver coins, as they only bring in market, for
purposes of exportation, about 4£ per cent., and for use as sma1! change 5 per cent,
premium. But as the same cause which has produced this difference in the rela­
tiv e value o f the tw o metals, namely, the cheap production of gold, and conse­
quently the increased quantity raised and brought to market, still exists, and indeed
is increasing, this difference w ill go on increasing, and it is to be apprehended
that we shall soon find that the proposed reduction is too small rather than too
great to enable the new coins to maintain them selves in circulation. So far from
there being any prospect o f a diminution o f the present stock o f gold, each suc­
cessive month adds imm ensely to it from th e increasing productions o f California,
Australia, and Russia.
Mr. H a l l (interrupting). I w ish the gentleman from Indiana would explain t h e
first amendment proposed by the Committee on W ays and Means.
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Mr. D u n h a m . I think it is susceptible o f a very easy explanation. The only
object of either provision is to give currency and credit to these new coins, and
thereby to maintain them in circulation. The provision o f th e Senate for the ac­
complishment o f this is to make them a tender in payment of small debts o f $5 and
under. T his would no doubt be sufficient for the purpose, as the intrinsic value
o f the metal in them is so little below their nominal value, and as th e supply is to
be limited, under the direction o f the Secretary o f the Treasury, to the necessity
for them for change. This, however, would make them a" standard in all small
transactions; w e would thereby still continue th e double standard o f gold and
silver, a thing the committee desire to obviate. They desire to have th e standard
currency to consist of gold only, and that these silver coins shall be entirely sub­
servient to it, and that tKey shall be used rather as tokens than as standard cur­
rency, and they propose to maintain their credit and circulation not only by lim­
iting the supply to th e w ants o f the Country, but by making them receivable for
a ll public dues to the U nited States by providing a customer re$dy at all times to
receive them at their nominal value to any amount. This would undoubtedly bo
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also sufficient, eran was th e intrinsic value o f th ese coins much less than w e pro­
pose to make it. I th ink this preferable to the provision o f the Senate, but I do
not deem either very essen tia l; for th e supply w ill be limited, and their actual
value, as compared to gold, w ill be so little below their nominal value tuat the
convenience and necessity for them w ill be amply sufficient to sustain their credit
and circulation w ithout either o f the provisions.

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I repeat, in reply to the gentleman, w e propose, so far as these coins are con­
cerned, to make th e silver subservient to the gold coin o f the country. W e inttend to do w hat the best writers on political economy have approved; w hat ex ­
perience, where the experiment has been tried, has demonstrated to be best, and
w hat the committee believe to be necessa< y and proper: to make but one stand­
ard o f currency and to make all others subservient to it. W e mean to make the
gold the standard coin, and to m ake these new silver coins applicable and con­
venient not for large, bu t for small transactions. 1 trust this sufficiently ex­
plains the reason o f our pursuing this course.

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Another objection urged against th is proposed change is, that it gives us a
standard o f currency o f gold only. W e sometimes become attached to old forms
and usages and obstinately in sist upon continuing them, without considering the
reasons for their adoption or the propriety o f their continuance. W hat advan­
tage is to be obtained by a standard o f the two metals, which is not as well, if not
much better, attained by a single standard, I am uQable to perceive; w hilst there
are very great disadvantages resulting from it, as the experience of every nation
w hich has attem pted to maintain it has proved. The constant, though sometimes
low change in the relative values o f the tw o metals has always resulted in great
inconvenience, and frequently in great lo ss to the people. W herever the experi­
ment o f a standard o f a single metal has been tried, it has proved eminently suc­
cessful. Indeed, it is utterly im possible that you should long at a tim e maintain
a double standard. T he one or the other w ill appreciate in value when compared
w ith the other. I t w ill then command a premium when exchanged for that other,
w hen it ceases to be a currency and becomes merchandise. I t ceases to circulate
as money at its nominal value, bu t it sells as a commodity at its market price.
T his w as the case w ith gold before the act of 1834; it is no w the case w ith silver.
Gentlemen talk about a double standard o f gold and silver as a thing that exists,
and that w e propose, a change. We have had but a single standard for the last
three or four years. That has been, and now is, gold. W e propose to let it re­
main so and adapt silver to it—to regulate it by it. T his is eminently proper.
Gold is the production o f our own country, silver is n o t L et u s use our own pro­
ductions, and, so far as that use can, increase its value. W hy should w e leave
our own to use th e productions o f a foreign soil w hen w e can gain nothing by so
doing?”

Mr. DOLPH. I now submit and ask to have read some extracts
from a speech by Mr. Skelton, in the House of Representatives Febru­
ary 15,1853, on the same bill, found in volume 26 of the Congressional
Globe, second session, Thirty-second Congress, to the same effect.
The Chief Clerk read as follow s:
The difficulty now to contend w ith is that silver is more valuable, relatively,
than gold. B y adopting the amendment proposed by the Committee on W ays and
Means, the opposite difficulty, and a greater one, w ill be encountered by the coun­
try. The silver coin would then be the least valuable, and the result would be to
drive th e gold coin entirely from circulation and substitute th a t o f silver, thus
producing a greater evil than the one proposed to be remedied. For this reason
I hope that th is amendment, above all others, w ill be voted down.

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One word in regard to the objects which th is bill proposes to accomplish. The
main object o f the bill is to supply small silver change, half-dollars, quarter-dollars, dimes, and half-dimes. N o one w ill question the necessity of some change of
th is kind to supply the pressing wants o f the community for small change. The
bill does not propose to change the value o f the gold currency; it does not pro­
pose to disturb tne standard o f value now in existence throughout the country.
Gold is th e only standard o f value by which all property is now measured. I t
is virtually the only currency o f the country.

Mr. DOLPH. I will also quote from a report of Senator Hunter,
from the Senate Committee on Finance, submitted on the 8th day
of March, 1852, on the same measure for the same purpose:
I f there were no other money but gold and silver, and if contracts were made,
not according to arbitrary values assigned by legislation to given portions o f
them, but were measured by certain w eights o f fine gold or silver, then th ese
metals would fluctuate precisely according to natural la w s; th at is to say, accord­
ing to the proportion.which they bore to the residue o f the property of the world.
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A contract m ight b© measured in specie by a law o f its ow n ; that is to say, i t
m ight specify that it wa« to be paid in such a w eight o f gold or in such a w eig h t
o f silver, and th is arbitrary rule m ight differ a little from its real value as bull­
ion ; but in th e general the great mass o f transactions would be measured in
these metals nearly according to their true bullion v a lu e ;. that is to say, th eir
currency and their bullion values would correspond.

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These metals derive their value from tw o distinct sou rces: one from their u se
as a currency, the other from their application to manufacturing purposes. The
demand for them as currency in any given year is to be measured by the number
and amount o f exchanges to be made in specie during that year; their value for
mechanical uses is their bullion value,- that is to say, it is measured by their pro­
portion to the residue of the property o f the world, for the demand for them in
the arts w ill be very nearly in pr oportion to th e w ealth o f society.
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B ut to approach still nearer to the real state o f things, w e now take the case o f
a difference in th e ratio o f gold to silver, as established in different countries. In­
stead o f a common legal proportion o f 15 to 1, w e w ill now suppose that some
nations adopt that ra tio ; others, that o f 14 to 1; and that others, again, use only on e
m etal as a standard, some preferring silver and others gold; and here, again, w e w ill
suppose an extraordinary increase in the supply o f gold; the bullion price of sil­
ver now rises to 14 to 1; how w ill these different countries be affected ? A s acurrency, silver w ill leave that in w hich its ratio is fixed to 15 to 1 o f gold, and gold
w ill there replace it; it w ill still be seen as a currency where its legal rate is 14
to 1, and it w ill be used as bullion everyw here until the increased quantities bring
down its bullion to its currency value, taking the world together. But how w ill
the first country be affected ? I t w ill purchase the goldto replace th e silver, at a loss;
that is to say, ’it w ill not get gold enough in exchange for its s ilv e r ; and it m ust be^
remembered that this loss is sustained on far the largest value which it had invested in
coin, because, where both circulate freely, th e silver probably appears in so much
greater quantities as to be more valuable.
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But, notwithstanding these considerations, th e committee have determined to
adopt the recommendation o f the Secretary o f th e Treasury, which w ill at least
accomplish th e end o f giving the community a currency o f silver tokens, instead
o f one o f bank notes ofsmalT denominations. The great measure o f readjusting
th e legal ratio between gold and silver can not be safely attem pted until some
permanent relations between the market values o f the tw o m etals shall be estab­
lished. The ratio o f 14.884 to 1, as proposed bv th e Secretary of the Treasury, has
a great recommendation in the fact that it w ill make the new silver coins o f con­
venient w eights, not only for the manipulations of the Mint, but for th e money o f
account w ith th e residue o f th e world.

To further show that national bimetallism is impossible, that it is
impossible w ith free coinage o f both gold and silver at a ratio which
differs from the ratio of the commercial value of gold and silver bull­
ion to maintain the two metals in circulation, I read from Macaulay’a
History of England certain extracts concerning the clipping o f silver
coin. Macaulay sa y s:
In the reign o f Elizabeth it had been thought necessary to enact that th e clipper
should be, as the coiner had long been, liable to th e penalties o f high treason. T h e
practice o f paring down money, however, w as far too lucrative to be so ch eck ed ;
and, about the tim e o f the Restoration, people began to observe th at a large pro­
portion o f the crowns, half-crowns, and shillings w hich were passing from hand
to hand had undergone some sligh t mutilation.
^
That was a tim e fruitful o f experiments and inventions in all th e departments
o f science. A great improvement in the mode o f shaping and Striking th e coin
w as suggested. A mill, which to a great extent superseded th e human hand, wasset up in th e Tower o f London. T his mill was worked by horses, and would
doubtless be considered by modern engineers as a rude and feeble machine. T he
pieces which it produced, however, were among th e best in Europe. I t w as n o t
easy to counterfeit th em ; and, as their shape was exactly circular and their
edges were inscribed w ith a legend, clipping was not to be apprehended. T h e
hammered coins and the m illed coins were current together. T hey were received
w ithout distinction in public, and consequently in piivate, payments. The finan­
ciers o f that age seemed to have expected that the new money, w hich was excel­
lent, would soon displace th e old money, w hich was much impaired; yet any man
o f plain understanding m ight have known that, w hen th e state treats p erfect
coin and lig h t coin as o f equal value, the perfect coin w ill not drive the lig h t
coin out o f circulation, but w ill itse lf be driven out. A clipped orown, on Eng­
lish ground, w ent as far in the payment o f a ta x or a debt as a m illed crown. B ut
the mill crown, as soon as it had been flung into the crucible or carried across th e
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Channel, became much more valuable than the clipped crown. I t might, there­
fore, have been predicted, as confidently as anything can be predicted w hich de­
pends on the human w ill, that the inferior pieces would remain in the only mar­
k et in w hich they could fetch the same price as the superior pieces, and that the
superior pieces would take some form, or fly to some place in w hich some advan­
ta g e could be derived from their superiority.

Continuing he sa y s:
M eanwhile the shears o f the clippers were constantly a t work. The coiners
too multiplied and prospered; for the worse the current money became the more
•easily it w as imitated. During more than thirty year? th is evil had gone on in­
creasing. A t first it had been disregarded; but it had at length become an in­
supportable curse to the country. I t was to no purpose that the rigorous laws
against coining and clipping were rigorously executed. A t every session that
w as held at the capital Old Bailey terrible examples were made. *Hurdles w ith
four, five, six w retches convicted o f counterfeiting or m utilating the money o f th e
realm were dragged month after month up Holborn H ill. On one morning seven
men were hanged and a woman burned for clipping. B ut all was vain.

Again he sa y s:
W hether W higs or Tories, Protestants or Jesu its, were uppermost, the grazier
-drove his beasts to m arket; the grocer weighed out his curran ts; th« draper
measured out his broadcloth; the hum o f buyers and sellers was as loud as ever
in th e to w n s; the harvest home was celebrated as joyously as ever in the ham­
lets ; th e cream overflowed the pails o f Cheshire; the apple ju ice foamed in the
presses o f Herefordshire; the piles o f crockery glowed in the furnaces of the Trent;
and th e barrows o f coal rolled fast along the timber railways of the Tyne. But
w hen the great instrum ent of exchange became thoroughly deranged, all trade, all
industry, was sm itten as w ith a palsy. The evil was felt daily aud hourly in
alm ost every place and by almost every class, in the dairy and on the thrashing
floor, b y th e anvil and by the loom, on the billows of the ocean and in the depths of
th e mine.

Again lie says:
Those politicians whose voice was for delay gave less trouble than another set
o f politicians, who were for a general and immediate recoinage, but who insisted
th at th e new shilling should be worth only nine pence or nine pence half-penny.
A t th e head o f this party was W illiam Lowndes, secretary o f the treasury and
member o f Parliament for the borough o f Seaford, a most respectable and indus­
trious public servant, but much more versed in the details of his office th in in the
higher parts of political philosophy. H e was not in th e least aware that a piece
o f metal w ith the king’s head on it was a commodity of w hich the price was gov­
erned b y the same law s w hich govern the price o f a piece o f metal fashioned into
a spoon or a buckle, and that it w as no more in the power of Parliament to make
th e kingdom richer by calling a crown a pound than to make the kingdom larger by
ca llin g a furlong a mile. H e seriously D elie ved, incredible as it may seem, that
i f the ounce o f silver were divided into seven shillings instead of five, foreign na­
tio n s would sell us their w ines and their silks for a smaller number of ounces. He
had a considerable following, composed partly o f dull men, who really believed
w hat he told them, and partly o f shrewd men, who were perfectly w illing to be au­
thorized by law to pay a hundred pounds w ith eighty.

I also present another instance of the operation of this law, which
w as formerly known as Gresham’s law, by which the cheaper money,
the poorer money, drives out the dearer and the better. I read from
Money and the Mechanism of Exchanges, by Jevons. He says, un­
der the head of “ Gresham’s la w : ”
Though the public generally do not discriminate betw een coins and coins,
rovided there is an apparent similarity, a small class o f money-changers, bullionS
ealers, bankers, or goldsmiths make it their business to be acquainted w ith such
differences, and know how to derive a profit from them. These are th e people
w ho frequently uncoin money, either by m elting it or by exporting it to coun­
tries where it is sooner or later melted. Some coins are sunk in the sea and lost,
and some are carried abroad by emigrants and travelers who do not look closely
to the m etallic value o f the money. But by far the greatest part of the standard
coinage is removed from circulation b y people who know that th ey shall gain by
choosing for this purpose the new heavy coins most recently issued from the mint.
H ence arises the practice, extensively carried on in the present day in England,
o f picking and culling, or, as another technical expression is, garbling the coin­
age, devoting the good new coins to the melting pot, and passing the old ^vorn
coins into circulation on every suitable opportunity.
From these considerations we readily learn the truth and importance of a gen­
eral law or principle concerning the circulation of money, w h icn m r. MacLeod has
Very appropriately named the Law or Theorem of Gresham, after Sir Thomas
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Gresham, who clearly perceived its trnth three centuries ago. T his law, briefly
expressed, is that bad money drives out good money, but that good money can n ot
drive out bad money.

Continuing, he says:
The m ost extrem e instance w hich has ever occurred w as in the case o f the
Japanese currency. A t the time o f the treaty of 1858 betw een Great Britain, the
United States, and Japan, which partially opened up the last country to European
traders, a very curious system o f currency existed in Japan. The most valuable
Japanese coin w as th e kobang. consisting o f a thin oval disc of gold about 2
inches long, and 1£ inch wide, weighing200 grains, and ornamented in a very primi­
tive manner. It w a s passing current in the towns o f Japan for four silver itzebus, but was worth in E nglish money about 18s. 5(2., whereas the silver itzebus
was equal only to about 1*. id. Thus the Japanese w ere estim ating their gold
money at only about one-third o f its value as estim ated according to the relative
values o f the m etals in other parts o f the world. The earliest European traders
enjoyed a rare opportunity for making profit. B y buying up the kobangs at th e
native rating they trebled their money until the natives, perceiving what w as be­
ing done, withdrew from circulation the remainder o f the gold.

I now direct my attention to what has been called the demonetiza­
tion of silver, which was in fact simply the withdrawal of the free
coinage of the silver dollar, and was accomplished by the act o f 1873.
I quote from a History of Bimetallism in the United States, by
Laughlin, from what he has to say in regard to the act o f 1873. Ho
says:
In 1873 w e find a sim ply legal recognition o f that which had been the imme­
diate result of the act ot 1853, and which had been an admitted fact in the history
o f our coinage during the preceding tw enty years. In 1853 it had been agreed to
accept the situation by w hich w e had come to have gold for large payments, and
to relegate silver to a lim ited service in the subsidiary coins.

The statement is thoroughly supported by the extracts which I
have made from the speeches in Congress when the act o f 1853 w as
under consideration.
The act of 1873, however, dropped the dollar piece out o f th e list o f silver coins.
In discontinuing the coinage of the silver dollar the act o f 1873 thereby sim ply
recognized a fact which had been obvious to everybody sin ce 1S49.

Mr. ALLISON. Since 1837.
Mr DOLPH. Y es; as stated by the Senator from Iowa, since 1837,
because, as I have shown, it was understood by the most intelligent
members of Congress when the act of 1834 was passed that the effect
of it would be to drive out silver and give us a gold standard.
I t did not introduce a n ything new or begin a new policy. W hatever is to b e
said about the demonetization o f silver as a fact must center in the act o f 1853.
Silver was not driven out of circulation by the act of 1873, which omitted the dol­
lar o f 412£ grains, since it had not been in circulation for more than twenty-five
years. In 1853 Congress advisedly continued in motion the machinery which kept
the silver dollar out o f circulation, and, as w e have seen, avowed its intention to
create a single gold standard.

The bill for the act of 1873 was transmitted to Congress w ith a let­
ter of the Secretary of the Treasury, dated April 25, le70, and which
was printed as Miscellaneous Document No. 133, Forty first Congress,
second session. The letter of transmittal is very brief. The impor­
tant part of the document is the letter of the D eputy Comptroller o f
the Currency to the Secretary of the Treasury, in which all the pro­
visions of the bill were taken up in detail and explained. Under the
head of “ Silver dollar—its discontinuance as a standard” is the fol­
lowing :
The coinage o f th e silver-dollar piece, th e history o f which is here given, is dis­
continued in the proposed bill. I t is b y law the dollar unit, and, assum ing the
value of gold to be fifteen and one-half tim es that o f silver, being about the mean
ratio for the past six years, is worth in gold a premium o f about 3 per cent, (its
value being $1.0312), and intrinsically more than 7 per cent, premium in our other
silver coins, its value thus being $1.0742.
The present law s consequently authorize both a gold-dollar unit and a silverdollar unit, differing from each other in intrinsic value. T he present gold-dollar
piece is made the dollar u n it in the proposed bill and the silver-dollar piece is d is­
DOL




39
continued. If, however, such a coin is authorized it should be issued only as a
commercial dollar, not as a standard unit o f account, and o f the exact value o f a
M exican dollar, which is the favorite for circulation in China and Japan and
other oriental countries.

Mr. CULLOM. Who was Comptroller then ?
Mr. DOLPH. John Jay Knox was Deputy Comptroller.
Mr. CULLOM. That was before the bill passed.
Mr. DOLPH. This is part of the document which was sent to Con­
gress transmitting on April 25, 1870, the bill for the act of 1873,
printed as a Senate document for the use of Congress. The history
of the legislation upon that bill is as follow s:
Submitted by Secretary of Treasury, April 25, 1870.
Referred to Senate Finance Committee, April 28, 1870.
Five hundred copies printed, May 2, 1870.
Submitted to House, June 25,1870.
Reported, amended, and ordered printed, December 19, 1870.
Debated, January 9, 1871.
Passed, by vote of 36 to 14, January 10, 1871.
Senate bill ordered printed, in House, January 13, 1871.
Bill reported with substitute and*recommitted, February 25,1871*
Original bill reintroduced and printed, March 9, 1871.
Reported and'debated, January 9, 1872.
Recommitted, January 10, 1872.
Reported back, amended, and printed, February 13, 1872.
Debated, April 9, 1872.
Amended, and passed by a vote of 110 to 13, May 27,1872.
Printed in Senate, May 29, 1872.
Reported, amended, and printed, December 16, 1872.
Reported, amended, and printed, January 7, 1873.
Passed Senate, January 17, 1873.
Printed with amendments, in House, January 21, 1873.
Conference committee appointed.
Became a law, February 12, 1873.
I now ask the Chief Clerk to read from the remarks of Mr. Hooper
upon this bill in the House, April 9, 1872, found at page 2306 of the
Congressional Globe, part 3, second session, Forty-second Congress,
for tne purpose of showing that it was understood by at least some
members of the House and by all who gave attention to the bill
that by it the free coinage of the silver dollar was to be withdrawn.
Mr. ALDRICH. Mr. President----The VICE-PRESIDENT. Does the Senator from Oregon yield to
the Senator from Rhode Island ?
Mr. DOLPH. I yield.
Mr. ALDRICH. The Senator speaks of the free coinage of silver
dollars which was omitted by the act o f 1873. Was it not true that
the coinage of silver dollars under the act of 1853 was not the free
coinage, but that there' was a mint charge for all silver deposited to
be coined into standard silver dollars ?
Mr. DOLPH. If I have said what I intended to say, I have said
that the free coinage of the silver dollar was authorized by the act
of 1834, or rather had been authorized by the act o f 1792 and con­
tinued by the acts of 1834 and 1837, and not discontinued by the act
of 1853. I iiave not undertaken to state what, if any, changes were
made in the law in regard to the coinage of the silver dollar by the
act of 1853, but I have stated, or if not I w ill state now, that by the
act of 1853 the free coinage of fractional coin was withdrawn and
the Government alone was authorized to coin it.
Mr. ALDRICH. I desire to call the attention of the Senator from
Oregon to the fact that by the mint act o f 1853 what we understand
DO L




40
to be the free coinage of silver dollars was discontinued, and that
after that there was a mint charge o f one-half of 1 per cenj;. per
ounce for all bullion deposited in the mints for the coinage o f the
standard silver dollar.
Mr. DOLPH. I think the Senator confuses a charge for coinage,
a seigniorage to the Government for the use of the mint, w ith free
coinage. Free coinage, I understand, is the right of any person to
take bullion to the mints and have it coined at the ratio fixed by the
law.
Mr. ALDRICH. What I understand to be free coinage as the word
is now used in the Senate Chamber is not only freedom to deposit bull­
ion, but gratuitous coinage, as well as the freedom to deposit the
bullion to be coined into silver dollars.
Mr. DOLPH. I have no1 undertaken to discuss that question. In
what I have said in regard to free coinage, I mean simply the right
of a person to take bullion to the mints and have it coined either
w ith or without charge for the use of the mint.
Mr. ALLISON. I desire to say just one word, if the Senator w ill
yield.
Mr. DOLPH. Certainly.
Mr. ALLISON. I think the statement of the Senator from Rhode
Island might mislead some people. The same charge was made for
coining gold by that law that was made for coining silver, so that
there was no discrimination against silver.
Mr. ALDRICH. I was not alluding to the fact of a discrimination,
but I was simply alluding to the fact that the act of 1853 provided
that a mint charge' should be made for coining standard silver dol­
lars.
Mr. DOLPH. I ask the Secretary to read a further extract from
Mr. Hooper, which I send to the desk.
The Secretary read as follow s:
Section 16 re-enacts th e provisions of existing law s defining th e silver coins And
their w eights respectively, except ip relation to th e silver dollar, w hich is re­
duced in w eight from 412& to 384 grains, thus making it a subsidiary coin in har*
mony w ith th e silver coins o f less denomination, to secure its concurrent circa*
lation w ith them. The silver dollar of 412& grains, by reason of its bullion or
intrinsic value being greater than its nominal value, long since ceased to be a coin
o f circulation, and is melted by manufacturers o f silverware. I t does not circu­
late now in commercial transactions w ith any country, and th e convenience o f
those manufacturers in th is respect can better b e m et by supplying small stamped
bars of the same standard, avoiding the useless expense o f coining th e dollar for
that purpose. The coinage o f the half-dime is discontinued for the reason th at its
place is supplied by the copper-nickel five-cent piece, o f w hich a large issu e has
been ma4e, and which, by the provisions of th e act authorizing its issue, is redeem­
able in U nited States currency.

Mr. DOLPH. Now turn to page 2316 and read from the remarks
o f Mr. Kelley in the House.
The Secretary read as follow s:
Mr. K e l l e y . I wish to ask th e gentleman who has ju st spoken [Mr. Potter]
i f he knows o f any Government in the world which makes its subsidiary coinage
o f full value. The silver coin o f England is 10 per cent, below the value o f gold
coin. A nd acting under the advice o f the experts o f this country and o f E ngland
and France, Japan has tnade her silver coinage w ithin the last year 12 per cent,
below the value o f gold coin, and for this reason: I t is impossible to retain the
double standard. The values o f gold and silver continually fluctuate. Y ou can
not determine th is year w hat will be the relative values o f gold and silver n ext
year. T hey were i5 to 1 a short tim e ag o ; th ey are 16 to 1 now.
H ence, all experience has shown that you must have one standard coin, which
shall be a legal tender for all others, and then you may promote your domestic
convenience Dy having a subsidiary coinage o f silver, w hich shall circulate in all
parts o f your country as legal tender for a lim ited amount and be redeemable at
its face value b y your Government.
But. sir, I again call the attention o f the House to the fact that the gentlem en
DO L




41
who oppose th is bill insist upon maintaining a silver dollar worth 3£ cen ts more
than th e gold dollar, and worth 7 cents 'more than tw o half dollars, and that so
long as those provisions remain you can not keep silver coin in the country.
Certain silver bullion dealers o f N ew T ork are making from $50,000 to $150,000
a year out o f your Government. One o f them adm itted to my colleague on the
com m ittee and m yself that h is business averaged from $1,800,000 to $2,000,000 a
year, and that he put th e silver into the M int and drew out for every $2 four half
dollars and one 10-cent, piece.
T his bill, w hile it contains many other excellent provisions, w ill save to the
people o f the country at least from a quarter to a half million dollars in the next
year apart from th e jobbing in hypothecated bars, and when w e come to specie
paym ents w e w ill save $5,000,000, which now go to the silver bullion dealers o f N ew

Mr. DOLPH. I think these quotations demonstrate that the charge
which has been so often made that the free coinage of the silver dol­
lar was withdrawn surreptitiously is not correct. I do not suppose
that the great masses o f the people of the United States either knew
or cared what was being done w ith the silver dollar, because they
were not acquainted w ith it. As I have already stated, the silver dol­
lar which had been coined in our mints was not in circulation; it had
been driven out of the country. The dollars went out as fast as they
were coined, because they were worth more than a gold dollar ana
were melted up. More were melted up and recoined in European
countries than in our own. But that Congress did not understand
what was being done, and that the Treasury Department did not ununderstand what was being done, is certainly not true, as is conclu­
sively shown by the letter of the Secretary of the Treasury from
which I have quoted and the remarks from the members o f the House
which have been read.
The only question open to discussion is as to whether Congress
made a m istake; whether, in view o f what afterwards transpired,
the great tall of silver compared with gold, we made a mistake then
in withdrawing the free coinage o f the silver dollar; whether it
would not have been better to leave the laws of 1834 and lfe37 in force,
eo that when the value of silver fell, so that our silver dollar was
worth less than the gold dollar according to our ratio, our coinage
and our circulation would have been silver rather than gold. That
is a question upon which there may be two opinions. All which has
preceded in regard to the ratio between the two metals under bur
law and the effect of that ratio upon the circulation of the two
metals has been to show that w ith the free coinage of silver we can
not expect that both metals w ill circulate in this country ; that we
must have either a silver basis or a gold b asis; that there is no mid­
dle ground, And we must choose between them.
If we were not able to keep gold in circulation under the act of
1792, on account of the slight overvaluation of silver and under the
operation of free coinage o f both gold and silver at the ratio fixed
by the acts 1834 and 1837, which overvalue#gold, silver was driven
from the country, how can we expect that with the increased facili­
ties for exchange, w ith time and space between all commercial
countries so .greatly reduced by telegraph and railroad lines and fast
steam ships, under free coinage of gold and silver at the ratio of 1 to 16,
both gold and silver w ill remain in circulation when the ratio between
the bullion value of the two metals is widely divergent from our legal
ratio.
As to the cause of the depreciation of silver I can not do better
than to quote from the report of the Secretary of the Treasury the
following comprehensive but clear and compact statement concern­
ing the legislation of European countries demonetizing silver, the
use of Indian council bills, and the effect of the legislation of the
United States upon the price of silver:
DOL,




42
CAUSES OF THE DEPRECIATION OF SILVEB.

From tbe year 1717 to 1873 the ratio between gold and silver was rem arkably
constant, being 15.13 to 1 in the former year and 15.92 to 1 in th e latter year.
During th is long period o f one hundred and fifty years there were slight flnnctu*
a tion sln the ratio, but not enough to cause any serious inconvenience. E ven dur*
ing the period o f the immense production o f gold, from 1848 to 1868, when $2,757,000,000 o f gold w as produced and only $813,000,000 o f silver, the change in th e
ratio w as only about 1.6 per cent.
The legislation o f Germany in 1871-73, imm ediately following th e Franco-Ger­
man war, adopting the single gold standard for that Empire, withdrawing rapidly
from circulation silver coins which prior to that tim e had formed almost exclu­
sively the circulating medium, and throwing large quantities o f silver at short
and uncerta'n intervals upon the market, waa the initial factor of the great mon­
etary disturbance which destroyed the legal ratio betw een gold and silver th at
had existed for h a lf a century.
France and her monetary allies, Belgium, Switzerland, Italy, and Greece,
alarmed at the immense stock o f German silver which was sure to flow into th eir
open m ints, immediately restricted and soon afterw aid closed their m ints to th e
coinage of fu ll legal-tender silver pieces.
T his action only hastened the catastrophe.
T he other nations o f Europe were not alow to follow th e example of Gerrdany
and France. In 1873-’75 Denmark, Norway and Sweden adopted th e single gold
standard, making silver subsidiary. In 1875 Holland closed her m ints to th e
coinage o f silver. In 1876 R ussia suspended the coinage o f silver, except for u se
in the Chinese trade. In 1879 Austria-Hungary ceased to coin silver for individ­
uals, except a trade coin known as the Levant thaler.
The result has been that while prior to 1871 England and Portugal w ere th e
only nations of Europe which excluded silver as fu ll legal-tender money, since th e
monetary disturbance o f 1873-’78 not a mint o f Europe has been open to the coin­
age o f silver for individuals.
I t has been charged that the act o f February 12, 1873, revising th e coinage sys­
tem o f th e U nited States, by failing to provide for the coinage o f the silver dollar,
had much to do w ith the disturbance in the value o f Silver. A s a matter of fact
th e act o f 1873 had little or no effect upon the price o f silver. The U nited States
w as at that tim e on a paper basis. The entire num berof silver dollars coined in th is
country from the organization o f the mint in 1792 to that date was only 8,045,838,
and they had not been in circulation for over twenty-flve years.
Moreover, immediately upon the passage o f that act the Unite*! States entered
the market as a large purchaser o f silver for subsidiary coinage, to take the place
o f fractional paper currency, and from 1873 to 1876 purchased for th at coinage
31,603,905.87 standard ounces o f silver, at a cost o f $37,571,148.04.
Starting in 1878 w ith no stock o f silver dollars, this country, standing alone o f
all important nations in its efforts to restore the former equilibrium betw een
old and silver, has, in th e briet period of eleven years, added to its stock of fa ll
>gal-tender money $343,638,001 o f a depreciated and steadily depreciating metal.
W hat has been the eftect upon the price o f silver ?
The value o f an ounce o f fine silver, which on March 1, 1878, was $1.20, was on
November 1, 1889, 95 cents, a decline in eleven years o f over 20 per cent.
In 1873, the date at which purchase o f silver for subsidiary coinage commenced,
the bullion value of the silver dollar, containing 371.25 grains o f pure silver, w as
about 1£ cents more than the gold dollar; on March 1, 1878, the date o f the com­
mencement o f purchases for the silver-dollar coinage, it was 93 cents, w hile to-day
its bullion value is 72 cents in gold. In other words, there has been a fall o f over
28 per cent, in the value o f silver as compared w ith gold in the last sixteen years,
and o f over 20 per cent, since we commenced purchases in 1878. T he downward
movement o f silver has been continuous and w ith uniformly accelerated velocity,
as w ill appear from the following table:
DOI«

S




43
Average pries of silver in London each fiscal year, 1873-1889, and value of an ounee
of fine silver at par of exchange, with decline expressed in percentages each year
since 1873.
Year.

Price in V alue o f a Decline
London. fine ounce. from 1873.

Pence.

59.2500
58.3125
56.8750
52.7500
54.8125
54.3T07
50.8125
52.4375
51.9375
51.8125
51.0230
50. 7910
49.8430
47.0380
44.8430
43.6750
42.4990

1873
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882,
1883.
1884.
1885.
1886
1887
1888.
1889.

Per cent.
$1.29883
1.27827
1.24676
1.15634
1.20156
1.19050
1.11387
1.14954
1.13852
1.13623
1.11826
1.11339
1.09262
1.03112
.98301
. 95741
. 93163

1.6

4
11
7.5
8.3
14.2
11.5
12.3
32 5
13.9
14.3
15.9

20.6
24.3
26.3
28.3

INDIAN COUNCIL BILLS.

In v ie w of, th e almost unanimous concurrence o f the leading commercial na­
tions o f th e world in excluding silver from coinage as full legal-tender monqy, it
would seem unnecessary to look farther for the causes of its depreciation, despite
th e large purchases upon th e part o f this G ovem nent. There has, however, been
one cause, which probably more than any other, except hostile legislation, has
depressed the market value o f silver, namely, the sale o f Indian council bills.
A bout 1867 a diminution in th e flow o f silver to the E ast w as clearly marked.
T his w as due to th e use o f bills o f exchange called “ council b ills,’* sold by the
India council o f th e Government o f India residing in London. These bills of ex­
change, which are claims for certain sums o f silver, are bought by merchants
w ishing to make paym ents in India, silver being th e standard and only legal
tender in that em pire; so that ju st as the expenses of th e Indian Government rose,
and, in consequence, the number o f council bills oflered for sale in London in­
creased, th e exportation of silver to India was saved.
In 1868-’69, the sale o f these bills amounted to 3,705,741 i., in round numbers
$18,000,000, whereas in 188&-’89 there w as realized from the sale o f these bills
14.223.4332., about $70,000,000.
In some years their sale has risen as high as $90,000,000.
The average amount realized annually from th e sale o f council bills, for the fif­
teen E nglish official years, 1875-1889, has been 13,756,8822., or $67,000,000, w hile
th e annual shipm ents o f silver to India for th e same period have averaged 7,176.4462., or $35,000,000.
DOI*




44
The following table exhibits th e net imports o f silver into India, and th e
amount realized from the sale o f Indian counoil bills, each year, from 1875 to 1889:

Table showing the net imports of silver into British India , and the amount of counctt
bills sold, during the Jiftem English offleial years (ending March 31 of each year)
1874-’75 to 1888-’89.
A m ount o f
N et imports council
bills
o f silver.
sold.

Years.

£,

1874-’7 5
1875-’7 6
1876-’7 7
1877-’78
1878-7 9
1879-’8 0
1880-’8 1
1881-’8 2 ...........................
1882-’8 3
1883-’8 4
1884-’8 5
1885-’8 6
1886-’8 7
1887-’8 8
1888-’8 9

£4,,640,000

Total...............

107,647,000

206,353,231

A nnual average.

7,176,466

13.756,882

550.000
7, 200.000
14, 580.000
8, 970.000
7, 870.000
3, 890.000
5, 380.000
7, 480.000
6, 410.000
7, 250.000
11,610.000
7, 160,000
,310,000
247,000
si,

10 841,614

12, 389,613
12, 695,799

,

10 134,455
13, 948,565
15, 261,810
15, 239,677
18, 412,429
15, 120,521
17, 599,805
13, 758,909
10, 523,505
157,213
15, 045,883
14, 223,433

T hese $50,000,000 to $90,000,000 o f council hills, payable in silver, annually thrown
upon the market affect th e price o f silver as would th e sale o f so much bullion.
T hat these council b ills hang lik e an incubus upon the price o f silver can not be
doubted, and th ey m ust enter largely into any inquiry as to th e causes o f depre­
ciation and into any estimate o f the probable advance of that metal.

*

*

*

*

*

*

*

T he argument has been strongly urged that by reason ot th e rapid retirement o f
national-bank notes a severe contraction of our currency has been effected, which
is paralyzing our industries, crippling our commerce, an i epressing th e price of
all kinds o f property. The facts,, however, do not su sta i .1 th is argument.

I need add nothing to this statement except to *ive with more par­
ticularity the provisions of the German acts o f 1871 and 1873, to
show that Germany initiated the hostile legislation against silver,
and that the substitution o f gold for silver caused the first decline
in silver in the markets of the world.
I quote again from the work to which I have referred by Laughlin:
Germany, consequently, saw an opportunity to secure gold instead o f silver, and
w as far-sighted enough to understand that if other countries were perm itted to
n ticipate h er in the course o f monetary progress the acquisition o f gold necessary
to th e upbuilding o f a great commercial state w ith large transactions m ight later
on possibly become a more costly proceeding.

Again, he says:
T he substitution o f gold instead o f silver in a country lik e Germany, which had
a single silver medium, was carried out by a path which led first to temporary
bimetallism and later to gold monometallism. A nd for th is purpose th e prepara­
tory measures were passed December 4, 1871.

More than two years before our act o f 1873 was passed.
submit so much of that act as is pertinent to the inquiry:

I w ill

Sec . 1. There shall be coined an imperial gold coin, 139J pieces o f w hich shall
contain 1 pound of pure gold.
Sec . 2. The tenth o f this gold coin shall be called a “ mark, ” and shall be divided
into 100 pfennige.
Sbc . 3. Besides the imperial gold coin o f 10 marks (Sec. 1), there shall be coined
Imperial gold coins o f 20 marks, o f which 69J pieces shall contain 1 pound o f pure
gold.
DOL.




45
Sec. 4. The alloy o f the imperial gold coins shall consist o f 900 parts gold and
100 parts copper; therefore 125.55 pieces o f 10 marks, 62.775 pieces o f 20 marks,
shall each weigh 1 pound.
Sec. 6. U ntil the enactment o f a law for the redem ption o f the large silver coins,
th e m aking o f th e gold coins shall be condacted at the ex p en se o f the empire.

Mr. Laughlin further says:
T his law o f 1871 created new gold coins, current equally w ith existing silver
coins at rates o f exchange whicn were based on a ratio betw een the gold and
silver coins o f 1 to 15&. The silv er coins were not demonetized by this la w ; their
coinage w as for the present only discontinued; but there was no doubt as to the in­
tention o f th e Government in th e future, since in section 6 reference was dis­
tin ctly made to further action looking to the withdrawal and permanent retire­
ment o f large silver pieces. Therefore, so far as Germany had had an annual
demand for silver hitherto to replenish her currency, th at demand ceased w ith
th e end o f the year 1871. E x istin g silver coins still remained a legal tender
equally w ith gold in a bim etallic system based on a ratio of 1 to 1%
The next and decisive step toward a single gold standard w as taken by the act
o f J u ly 9,1873.

I quote from that a c t:
S ec. 1. In place o f the various, local standards now current in Germany, a na­
tional gold standard w ill be established. Its monetary un it is th e Mmark,” as
established in section 2 o f the law dated December 4, 1871. [Five-mark gold
coins were authorized, in addition to gold coins authorized by the act of 1871.]
Sec . 3. There shall oe issued in addition to the national gold co in s: 1. A s silver
coins, 5-mark pieces, 2-mark pieces, 1-mark pieces, 50-pfennig pieces, and 20pfennig pieces. [Copper and nickel coins were also established.]
P. 1. T he pound ot line silver shall produce at coinage 20 5-mark pieces, 50 2mark pieces, etc. The proportion o f alloy is 100 parts o f copper to 900 parts of
silver, so that 90 marks in silver coin shall w eigh 1 pound.
S ec . 4. The aggregate issu e o f silver coin shall, until further orders, not ex­
ceed 10 m arks for each inhabitant o f th e empire. A t each issue of these coins
la quantity o f the present silver coins egual in value to the new issu e must be w ith­
drawn from circulation, and first those o f the 30-thaler standard.
S ec . 9. N o person shall be compelled to take in paym ent national silver coins to
a larger amount, that 20 marks, and nickel and copper coins to a larger amount
than 1 mark. T he federal council w ill designate such depositories as w ill dis­
burse national gold coins in exchange for silver coins in amounts of at least 200
marks, and o f nickel and copper coins in amount o f at least 50 marks, upon de­
mand.
S ec . 14. P . 1. A ll paym ents to be made up to th a t tim e (the introduction of the
national standard) in coins now current, or in foreign coins law fully equalized
w ith Such domestic coins, are then to be made in national coins.
S ec. 18. B y January 1,1876, all bank notes n ot isened according to the national
standard m ust be withdrawn.
From that date only bank notes, issued according to the national standard, and
in denominations o f n ot less than 100 marks, may be emitted and kept in circula­
tion. These provisions also apply to bills hitherto issued by corporations.

Our act, having been passed in January or February of that year,
preceded the German act of 1873. The Senator from Colorado said
the other day that even the President of the United States did not
understand the effect of that act and that the free coinage of the
silver dollar had been withdrawn by that act. If so, if the people
did not understand it, we not coining the silver dollar before, it is
not probable that our action affected the action o f Germany at all.
Mr. TELLER. I should like to ask the Senator if he understood
me to say that our action influenced Germany. Germany preceded
us in action.
Mr. DOLPH. I do not claim that, but I merely quoted the Sen*
ator from Colorado as saying the other day that the people o f the
United States did not understand until long afterwards that the free
coinage o f the silver dollar had been withdrawn by the act of 1873,
and that even the President of the United States did not under­
stand it.
Mr. TELLER. Does the Senator deny that ?
Mr. DOLPH. A moment ago I said I presumed the masses o f the
people did not know or care then what was done w ith the silver dol­
lar. As it was not in use and had not been coined in any quantity,
DOL




46
they were strangers to the silver dollar. But I am not taking issue
w ith the Senator in regard to that,. I do not say that the Senator from
Colorado said that our act of 1873 influenced Germany, but I merely
said, supposing that some one might claim that it did, that probably
it did not influence Germany.
Mr. TELLER. I f the Senator w ill allow me a word, what I did
say was not that our action influenced Germany, because the German
act preceded ours, but if we had maintained the status as it was when
Germany sent its silver on the market and silver began to depreciate,
if it did, it would have opened our mints to the coinage o f silver,
which had been closed, not because of the law, but because o f the
high price of silver.
Mr. DOLPH. The Senator is entirely correct in regard to that. As
I said a moment ago, the only possible question in regard to the act
of 1873 is whether it was wise in view of what afterwards occurred,
the fall of silver.
Mr. TELLER. That is it.
Mr. DOLPH. The question is whether it would have been better
for this country to go to the silver basis or to maintain the gold basis
which had existed since 1834. This writer,Laughlin, says:
B y th is measure gold was established as th e monetary standard o f th e country,
w ith the “ mark ” as the unit, and silver was used, as in the U nited States in 1853,
in a subsidiary service.

From this it w ill be seen that the coinage o f silver was discon­
tinued by Germany in 1871, and the demand for silver, that had been
large for coinage purposes, was cut off, while the coinage of gold and
the payment of the French war indemnity in gold created an addi­
tional demand for that jaetal. These two causes had begun to op­
erate as early as 1872 to depreciate silver.
By the act of July 9, 1873, silver was demonetized and the bulk of
the German silver was thrown upon the European market to further
depress the price of silver. I f our act of 1873 had any influence upon
the price of silver it must have been very slight, as we coined more
silver at the mints o f the United States in the years from 1873 to
1877, inclusive, five years, than we had coined in all the years from
1850 to 1873, inclusive.
Mr. PLATT. That includes all subsidiary coin, fractional coin f
Mr. DOLPH. Yes, including all. The increase during those years
was in fractional or subsidiary coin, to take the place, as I have al­
ready stated, of our fractional legal-tender currency. In fact, the
United States entered into the market as a large purchaser of silver
immediately after the passage of the act of 1873.
As the demand for silver for coinage in the United States was
largely increased after 1873, if the act of 1873 had any influence at-all
upon the price of silver it must have been because it was a legal af­
firmance of the monetary policy adopted by the United States in
1853 of a gold standard with silver for a subsidiary coin.
I present here a statement showing the yearly coinage of silver in
the United States from 1850 to 1877, inclusive:

Years.

Total silver
coinage,
including
dollars.

I860...................................... $1,866,100.00
1851......................................
774.397.00
1852......................................
999.410.00
1853 ...................................... 9,077, 571.00
DOL




Years.

1854....................................
1855....................................
1856....................................

Total silver
coinage,
including
dollars.
$8,619,270.00
3.501.245.00
5.135.240.00
1,477,000.00

47
Years.

1858
1859
1860
1861
1862
3863
1864
1865
1866
1867

Total silver
coinage,
including
dollars.
$ 8 ,0 4 0 ,7 3 0 .0 0
6 .1 8 7 .4 0 0 .0 0
2, 7 6 9 ,9 2 0 .0 0
2 .6 0 5 .7 0 0 .0 0
2 ,8 1 2 ,4 0 1 .5 0
l ; 174, 09 2 .8 0
5 4 8 ,2 1 4 .1 0
636, 30 8 .0 0
6 8 0 ,2 6 4 .5 0
9 8 6 ,8 7 1 .0 0

Tears.

1868
1869
1870
1871
1872
1873
1874
1875
1876
1877

Total silver
coinage,
including
dollars.
$ 1 ,136,
840,
1, 767,
1 ,9 5 5 ,
3, 029,
2,94^,
5 ,9 8 3 ,
10,070,
19,126,
2 8,549,

7 5 0 .0 0
7 4 6 .5 0
2 5 3 .5 0
83 4 .0 5
79 5 .5 0
6 0 1 .3 0
36 8 .0 0
5 0 2 .5 0
93 5 .0 0

In addition to the diminution of the demand for silver for coinage
purpose by the action of Germany, France, Belgium, Switzerland,
Italy, Greece, Denmark, Norway and Sweden, Holland, Russia, and
Austria-Hungary, there has been since 1873 a marked, increase of the
production o f silver. In his annual report the Secretary of the Treas­
ury states that the w orlds product of silver in 1878 was estimated
at $95,000,000 (coining value), of which $45,200,000 was the product
o f the United States, and that in 1888 the world’s product of silver
was estimated at $142,000,000 (coining value), o f which $59,195,000
was produced in the United States, showing an increase of the
world’s product of silver in a single decade of about 50 per cent, and
an increase of 30 per cent, during the same period in the product of
the United States.
As one object o f the measure before us is to increase the circula­
tion, it is pertinent to inquire whether there is at the present time a
deficiency of circulation in this country. If the demand and neces­
sity for money depends entirely upon population, the question would
appear to be conclusively answered in the negative by the statement
o f the Secretary of the Treasury in his annual report, which shows
a material increase o f circulation per capita in this country during
the last decade. If, however, there are other considerations neces­
sary to a correct answer to the inquiry, it is not sufficiently answered
by the fact that there has been an actual expansion of the currency
as compared to population within a given period. One thousand
millions of the world’s inhabitants, the inhabitants o f Asia, Africa,
South America, and Mexico use a small amount, of money as com­
pared with the people of the United States and European countries.
It seems reasonable that the amount of money required by a people
should largely depend upon their character and the nature of their
employments.
The Secretary of the Treasury in his annual report says, concern­
ing the alleged contraction of the currency, that—
The argument has been strongly urged that by reason o f the rapid retirem ent of
national-bank notes a severe contraction o f our currency has been effected, which
is paralyzing our industries, crippling our commerce, and depressing the price of
all kinds o f property. The facts, however, do not sustain th is argument.

SOI.




48
Since March 1,1878, there has been no contraction, but, on th e contrary, a very
large expansion o f onr currency, as w ill appear from th e following statem ent taken
from the books o f the T reasury:
In circulation In circulation
March 1,1878. October 1,1889.
Gold coin...................
Standard silver dol­
lars - ____. . . . . .
Subsidiary silv er---Gold certificates---Silver certificates.
U nited States notes.
National-bank notes
T o ta l...............

$82,530,163

Decrease.

$375,947,715

$293,417,552

311,436,971
313,888, 740

57,554,100
52,931,352
116,675,349
276,619,715
325, 510, 758
199,779,011

114,109,729

8^5,793,807

1,405,018,000

114,752,210

53,573,833
44,364,100

Increase.

57,554,109
$642,481
72,311,249
276,619,715
14,073,787

N et in crea se ___

713,976,403
599,224,193

From the above statem ent it w ill be seen that the—
Total increase o f circulation o f all kinds has b e e n .................................$713,976,*403
Total decrease........................................................... - ......................................... 114,752,210
N et increase...............................................................................................

599,224,193

The net expansion since March 1, 1878. has, therefore, been $599,224,193. The
average net increase per month has been $4,342,204, $52,106,451 per annum. The
total n et increase has been a little over 74 per cent., while the increase in popu*
lation has been about 33 per cent. In 1878 the circulation was about $16.50 per
capita, and in 1889 it w as about $21.75 per capita.

I do not understand that any one questions this statement, but the
fact that there has been withiu the last ten years an expansion of the
currency does not prove that a further expansion would not be bene­
ficial and is not required by reason of the increased business activity
o f the country.
The senior Senator from Nevada the other day gave us a glow ing
and interesting account o f the growth of our industries which I do
not think was overdrawn.
Mr. Edward Atkinson, who was appointed by President Cleveland
to visit the monetary centers of Europe and ascertain if there had
been any change in the attitude of European countries concerning
an international agreement for the free coinage of silver at a ratio
to be agreed upon, makes the following statement in his report to
the President:
DOL




Between 1870 and 1885 or 1886 the relative increase in population, in production, in consumption, and in some forms of wealth has been as
follows:
2
Gain in population, production, wealth, and savings, 1870 to 1885, and on some items to 1886.
I To
1 1885. Population........................................ 48
1885. Production o f grain....................... 85
1885. Consumption o f c o tto n ............... 86
18&5. Consumption o f w ool.................... 88
1885. Production o f hay .........................100
1885. D eposits in savings-banks of
M&sachusetts ............................ 102
1885. Production of cotton.....................108
1886. Deposits in savings banks of
M assachusetts............................ 115
1885. Production o f iron........................ 143
1? 85. Insurance o f property against
loss by fire................................... 160
1885. M iles o f railroad............................ 168
1886. M iles o f railroad............................ 192
1886. Production of ir o n .........................200
h




50
It w ill be seen from this statement that in some forms o f wealth
in the United States (the statement relates to the United State* only)
the increase has been mach greater than the increase in population.
I have no doubt that the increase in almost all our industries
within the last ten years has been greater than the increase of population, and I am ready to believe that the same number of people in
this country need more money in 1890 than they did in 1878.
I have arrived at the conclusion, notwithstanding the figures given
us by the Secretary of the Treasury, that the prosperity o f the coun­
try would be promoted by an increase o f circulation, and would be
still further secured by such legislation as would provide for its
future expansion to keep pace w ith the increase of population and
of business.
The measure under consideration is also intended for the purpose
of enhancing the value of silver bullion. „ As the United States is
the largest silver-producing country in the world, furnishing nearly
one-half of the world's product of silver, and is itself a large owner
of silver,, it is desirable to shape legislation so as to give silver an
increased value rather than to add to the causes which have pro­
duced the decline in its value.
„ We differ as to the best method to accomplish this, but are agreed
that it should be done.
I am decidedly of the opinion that the character o f the measure
most likely to enhance the price of silver is one which w ill secure
an increased and fixed monthly purchase by the' Government of sil­
ver bullion and the issue of certificates for the payment, with such
provision for their redemption as w ill maintain them at par with
gold.
But for the purpose of increasing the volume of the currency any
measure proposed for the purchase or coinage of silver would, in
my opinion, be at mdst a temporary expedient. The national cur­
rency grew out of the necessities of the nation in its great struggle
for existence during the war of the rebellion; but both the legaltender currency ana the national-bank notes have proved to be a
safe, convenient, and popular substitute for coin, and in my judg­
ment legislation to perpetuate the national-bank system is desirable.
The system has realized all the good ever claimed for it by its most
sanguine advocates. The defects of the system are fewer than those
of any other banking system yet devised. It has won its w ay to
popular favor, and I hope it is to be continued.
The people of this country w ill never again be satisfied with a
currency which is not so secured as to be everywhere within our
own borders of the same value and equal to coin.
As banks of discount and exchange national banks possess/ a de-.
cided advantage over State banks, owing to their frequent examina­
tion and the publication of the condition of their affairs and the
limitation upon the amount; and character of their loans, which have
a tendency to strengthen their credit.
Nothing could be more'satisfactory as security for the circulation
of the national banks than Government bonds and the liability of the
Government for its redemption. But this system^being based upon
the national debt, its usefulness has been crippled and its continued
existence is threatened by the rapid liquidation of the debt. As the
bonds have been -called in those held by the national banks have
been surrendered and their circulation withdrawn accordingly.
Unless some unexpected event should occur to stop the payment of
the public debt and indefinitely postpone its final liquidation or
some modification o f the law is made by which other securities can
be substituted for national bonds, the whole system must soon come
DOL




51
to an end. One o f tw o things must he done: either the nationalbanking law must be so amended as to allow State, municipal, >and
railroad bonds and mortgages on real estate or similar securities to
be made the basis of Circulation, to form, in connection w ith such cur*
rency as the Government can directly provide, a sufficient circulating
medium, or the United States must surrender its monopoly o f the
banking business land permit the States to assume control of it.
Neither the bill under consideration nor free coinage o f silver,
w hile either would probably afford relief, would provide a sufficient
circulation for the increasing business o f the country, unless supple­
mented by a bank circulation, State or national. The matter of pro­
viding some substitute for United States bonds as a basis for nationalbank circulation should have long since received the attention of
Congress. The remedies proposed by the Comptroller o f the Cur­
rency, namely, allowing the issue of notes to the par value of the
bonds, reducing the rate of taxation, etc., are merely temporary expe­
dients, w ell enough in themselves; but the subject demands more
radical and courageous treatment.
I see no insurmountable difficulty and no danger to the currency
and business o f the country in the substitution o f such securities
as I have mentioned for national bonds.
The General Government would retain full control of the entire
system. The securities required could be the most approved of their
kind and made subject to frequent examinations.
W ith proper regulations and supervision, I have no doubt the sys­
tem could be conducted w ith as much safety to depositors and with
as absolute security for the circulating notes of the banks as at
present.
I have before me the banking act o f the State of New York, in
force prior to the passage of the national-bank act and the taxing
of the circulation o f the State banks out o f existence. It provides
for the deposit of national and State stocks, and bonds, and mort­
gages upon real estate as security for bank circulation, and for the
withdrawal of securities once deposited and the substitution of
others. As all the securities substituted for United States bonds
under the plan I advocate would draw interest and would of them­
selves be profitable investments, the amount o f notes to be issued
upon their security could, without detriment to the system, be made
less in proportion to their par value than is allowed upon the secur­
ity of national bonds. The junior Senator from Illinois [Mr. F a r wifiix] early in the session introduced a bill to provide for such a
modification of the banking act as I suggest. But the bill is al­
lowed to sleep in committee.
In my judgment the Senator did the country a service by placing
the matter before the Senate, and I hope the Finance Committee
w ill take it under serious consideration without delay.
The junior Senator from New York [Mr. H is c o c k ] has also recent­
ly introduced by request a similar bill, but it seems to me he took
unecessary pains to have it understood that the measure was not
his own. He could not have introduced ft bill upon a more impor­
tant subject.
I have before me the draught of an act published in The American
Banker recently, which proposes to substitute certain other securi­
ties for national bonds as the basis of circulation of national banks.
I do not approve o f the substitution for national bonds of all the
securities proposed by this bill, but quote from it to show what sub­
stitutes have been proposed.
DOL




52
A n act to amend and re-enact the act entitled “ A n act to prescribe a national
currency secured by a pledge o f U nited States bonds, and to provide for th e cir­
culation and redemption thereof.”

Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, T hat the act approved June 3,1864, aud known
as the “ national-bank act,” be amended and re-enacted as follows: To provide
necessary circulation for the transaction of th e business o f th e U nited States, de­
posits of Government, State, railway, and municipal bonds o f at least par market
value, and not in default o f interest for at least ten yeats past, be allowed to secure
such circulation from banks chartered under the national-banking act, under
such rules and regulations as the Secretary o f the Treasury and th e Comptroller
o f the Currency may adopt, the amount o f circulation issued upon th e deposit
o f the afore-named securities not to exceed 90 per cent, o f their market value,
except in the case o f Government bonds, which shall be entitled to an issue o f
notes at their face value, and such margin to be kept good at all tim es by the
banks depositing same upon the demand o f th e Treasurer o f th e U nited States,
th e custodian thereof.
2. In addition to the foregoing the following securities shall be received for
the stated purposes of circulation:
I . First-mortgage loans secured on improved real estate at not exceeding 50
per cent, o f its assessed value, when guarantied by corporations of $100,000 or
more o f paid-in cash capital, and whose stock is of par market value and has paid
dividends regularly for three years past or more.
II. Certificated o f deposit o f gold and silver coin and bullion in the Treasury or
m int o f the U nited States.
III. Storage warrants and warehouse receipts o f pig-iron, cotton, and w heat in
responsible companies o f at least $250,000 o f paid-in cash capital, and whose
storage yards and warehouses are approved by the Secretary of the Treasury and
th e Comptroller o f the Currency; w ith insurance at all times on these commodities
(except as to pig-iron in storage yards) in reliable companies to the extent o f the
m arket value or the same for the benefit o f the bank depositing such warrants or
receipts for the security o f circulation issued against same, and by said bank as­
signed to the Treasurer of th e United States as collateral security for th e purpose
herein stated, w ith the privilege o f substitution o f other warrants or receipts in
lieu o f those previously deposited. These warrants and receipts to come through
national banks to whom the circulation shall be issued.

In conclusion, I repeat that I am thoroughly convinced that while
international bimetallism is practicable and desirable, national bi­
metallism is im practicable; that it is idle to expect that the United
States^ by any legislation which can be enacted, can place silver at a
par w ith gold at the ratio now fixed by law. Silver w ill never be
at par w ith gold in this country until it is at par w ith gold in the
markets of the world, and that never can be brought to pass w ith­
out the co-operation of the principal nations of Europe.
There is no middle ground for us. We must maintain a gold stand­
ard or adopt a silver basis. Free coinage of silver dollars o f the
present weight and fineness means a silver standard.
No one can now tell what would have been the effect upon the
credit, business, and prosperity of the country if the act of 1834 had
remained in force, and after silver reached a point in the decline of
its price, below the price of gold at the ratio fixed by that act* and
when the mints of Europe were closed against it our mints had been
open to the free coinage of silver.
From the time the market price of 371J grains o f pure silver be­
came less than $1 in gold of our coinage silver would have been the
basis of all commercial transactions in this country, gold' would
have ceased to circulate, our currency and the price o f all commod­
ities measured by it would have fluctuated as the price of silver
bullion rose and fell, and gold aud silver as compared w ith each
other would have been commodities and subjects of speculation in
W all street.
We know what the result has been of the financial policy that
was adopted and has been pursued by the Government. We have
seen the national credit grow stronger and stronger until it is better
than ever before in its history and equal to that of any nation upon
the earth.
DOli




53
We have seen our depreciated currency placed at a par with gold,
largely sought- after, as a most convenient and desirable currency,
and passing current in foreign countries.
Under that policy the national debt has been refunded at greatly
reduced rates o f interest and is being liquidated w ith a rapidity not
dreamed o f before the alleged demonetization o f silver.
Our Treasury is full to overflowing. Our bonds drawing 3 per
cent, interest are at a premium, and money is cheaper in every part
of the Union than ever before in our history. Under that system
the country has enjoyed a longer period of uninterrupted prosperity
than it ever before enjoyed. During the last seventeen years the
settlement of our public domain, the extension o f our railroad and
telegraph lines, the development o f our resources, the increase of our
internal commerce, and the growth o f every industry has been with­
out a parallel in any previous period of our history.
I confess that when I consider all the phases of the question under
consideration I do not feel certain that a radical change in the finan­
cial policy of the Government w ill be productive of desirable results,
and I am disposed to be conservative. At all events, such a change as
free coinage of silver would be largely experimental. It seems safer
to endeavor by conservative measures to cure, the ills we suffer than
to fly to others we know not of. I prefer, therefore, some measure, if
one can be devised, which w ill maintain the credit of the Govern­
ment and preserve the existing standard of values, except as it may
be affected by an increase of circulation and the enhanced price of
silver.
Some such plan as that proposed by tne Secretary of the Treasury
or reported by the Senator from Nevada from the Finance Commit­
tee w ill certainly secure all the increase of the circulation needed
at present and w ill have a direct and continuing tendency to en­
hance the price o f silver. I am not one of those who assume to knowall about silver and finance and 1 am not disposed to quarrel with
any one who differs w ith me. All I claim is the right to exercise my
judgment and express my opinions with the same freedom that others
do, and to receive equal credit with them for a desire to secure the
use of both gold and silver as money and to promote the honor and
glory o f the United States and the prosperity o f its people.
Perhaps before closing my remarks I ought to revert to the action
of the late Republican State convention in Oregon. In presenting
my view s upon this question I am very much in the situation of a law ­
yer who has permitted judgment to go against him by default and is
asking to have it set aside and the case heard.
It is true that the last Republican convention of Oregon did de­
clare in favor of the free coinage of silver. But I interpret the reso­
lution liberally. I treat it as a declaration that the convention fa­
vored an increase o f the currency and legislation to enhance the value
of silver. I am in hearty accord with the convention in desiring to
secure these results.
I believe that w hat the convention favored was the use o f both
metals as money, and would not have declared for a silver basis if it
had been supposed that gold was to be driven thereby from circulation.
I am in favor of free coinage of silver, under such an arrangement
w ith other countries as w ill enable us w ith free coinage to keep both
old and silver in circulation. As the measures before us were not
efore the convention, I venture to consider other measures, and
to support that one which appears to me best calculated to secure the
results desired by the convention.
Free coinage is a question that very few people are entirely famil­
iar with. Since this bill has been under consideration I have had

f

DO L




54
conversations w ith many representative men concerning silver coin­
age, and they all, as a rnle, confess their ignorance upon the question.
Among others, I talked with one o f the ablest and brightest lawyers
of this city, a man who aims to keep abreast of the public questions
o f the day, who frankly said to me that' he had never studied the
silver question and knew but little about it.
It is no disparagement to say that very few o f the members o f the
convention, who were all representative and intelligent men, had
probably ever made a special study o f the silver question and under­
stood clearly what effect the free coinage of silver, without the co-operation of other nations, would have on the finances and industries of
the country.
I have the utmost respect for the opinions and wishes of the people
o f my State. When their wishes upon any economic question are
authoritatively ascertained, whenever both sides of such a question
have been properly presented to them and they have expressed a
deliberate and intelligent judgment upon it, I shall respect that
judgment so far as I can- under my oath to support the Constitution,
and my convictions as to what is demanded in the interest of the
whole people o f the United States. At all events, I shall place my
view s before them for their consideration and leave time to demon­
strate the soundness of them.
Mr. TELLER. I desire to ask the Senator from Oregon a ques­
tion before he leaves the door. I understood the Senator to say that
nothing but a sentimental objection can stand in the way o f giving
the Secretary of the Treasury authority to provide for the redemp­
tion of the Treasury notes to be issued under the so-called Jones
bill. I f that is so, I should like to know what he understands by
t h a t ; how he proposes to redeem them. W ill the Senator explain
what that suggestion means f
Mr. DOLPH. Mr. President, as I have already stated, there are but
tw o policies to be pursued by this Government concerning silver.
There is no middle ground. National bimetallism is impracticable.
If an agreement can be made w ith a sufficient number of commercial
nations to open their mints to the free coinage o f both gold and silver
at a fixed ratio, I think it would be sufficient to make the commer­
cial value of silver at the ratio agreed upon equal to that o f gold and
to sustain it there, but without such an agreement the United States,
in my judgment, must choose which standard it w ill have, the pres­
ent standard, the standard which we have had since 1834, practically
a gold standard, or it must choose the silver standard. In other
words, it must remain by the side of England and France and Ger­
many and Belgium and Italy and other European countries, or it
must take its place by the side o f Asia, the South American countries,
and Mexico.
There is but one proposition before the country or that has been
made in Congress avowedly looking to the silver standard, and that
is the proposition of the Senator from Colorado for free coinage. All
the other propositions are claimed to be measures for the purpose o f
sustaining the gold standard, o f securing an increase of circulation,
and enhancing the value of silver, measures for keeping the silver dol­
lar and the silver certificates at par w ith gold. If I believed they
would not do it, I would a thousand times rather vote for the Sen­
ator’s proposition for free coinage than to vote for either o f them, for
I think that the most disastrous thing that could possibly happen to
the country would be, as I have said, the unexpected depreciation of
silver, and for our silver currency to go fluctuating w ith the price o f
silver in the markets of the world from day to day until we reach the
silver basis. I prefer a law under which the price of silver w ill be
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enhanced, under which sufficient circulation w ill he secured, and the
present standard maintained, if that can be certainly done.
Mr. TELLER. The gold standard ?
Mr. DOLPH. The gold standard. I repeat, I prefer a measure
which will give the country a sufficient currency and enhance the
price of silver while maintaining our silver coin at par with gold
to the measure offered by the Senator from Nevada as an amendment
to the pending bill. Therefore I said if it is the purpose of this Gov­
ernment to maintain a gold standard and to maintain the value of the
silver certificates at par. with gold, in pursuance of that policy Con­
gress ought to place all the power in the hands of the Secretary of
the Treasury necessary to 'secure that end. The proposition of the
Secretary of the Treasury is to redeem the certificates in silver bullion
at the market rate in gold at the date of presentation. That would
maintain the certifi cates at a par with gold beyond question. The Sen­
ator from Colorado does not like that proposition. He prefers that
they be made redeemable in lawful money or coin. If the purpose be
to maintain their value at par with .gold, to give them a legal-tender
quality the same as we have the $346,000,000 o f our greenback cur­
rency, what objection can there be but a sentimental objection to
empowering the Secretary o f the Treasury to redeem them in like
manner ?
I agree with what I understood to be the position taken by the
Senator from Kansas [Mr. I n g a l l s ] the other day. The deposit of
one hundred millions of gold in the Treasury for the redemption of
legal-tender notes at the time it was done was probably necessary
to give the people o f this country confidence that the legal-tender
notes would be redeemed when the y were presented. I believe its
retention there has long since ceased to be necessary, because the
Secretary of the Treasury is empowered under the law, for the pur­
pose of redeeming those notes, to sell the bonds of the United States,
which are at a premium everywhere, and $100,000,000 of bonds in
the Treasury for the purpose of that redemption are just as good as
gold coin. As was said by the Senator from Kansas, the coupons
could be cut off half yearly and burned and the United States would
thus save interest. Just as long as the bonds are there for the pur­
pose of redemption the Secretary of the Treasury w ill never sell a
bond. He never w ill be required to do it.
Let it be understood that there are one hundred or two hundred
millions of bonds which the Secretary of the Treasury is empowered
to sell whene ver a demand is made for gold coin to pay legal-tender
notes, and the bonds w ill never be sold. For the purpose of redeem­
ing the legal-tender notes the bonds are just as good as the gold
coin in the Treasury.
Now I come to what the Senator from Colorado wanted me to say.
Mr. TELLER. I did not want the Senator to say anything.
Mr. DOLPH. To what he expected I would say. I come to his
question. What I meant was to make whatever provision has been
made for the redemption of the $346,000,000 legal-tender notes ap­
plicable also to a redemption of the certificates we are to issue for
the purchase o f silver. If we make them legal-tenders and give
them all the functions of money, make them money to all intents and
purposes just as far as we can by legislation, receivable for public
and private dues, why not extend to them the provisions of the re­
sumption act and give the Secretary o f the Treasury, if necessary
for their redemption, power to sell bonds ? W ith such a provision
they would pass at par with gold, the present standard would be
preserved, the credit of the Government would be maintained, no­
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56
body would ever think o f bringing in one of them for redemption,
and the bonds would never be sold,
That is what I meant by the language the Senator referred to. ‘ I
say if we are to issue now monthly $4,500,000 o f Government notes,
or more, if you take the bill reported from the Senate Committee
on Finance, which requires the purchase o f 4,500,000 ounces of sil­
ver per month, and are to make these notes serve all the functions
of money, there is no reason why we should not put behind them the
same authority for their redemption and the same power to enable
the Secretary of the Treasury to maintain them at par w ith gold that
we have for the redemption of legal-tender notes.
There could be no difference of opinion between us, I think, upon
this question if the Senator from Colorado and myself were agreed
that the measure we are to adopt is to be a measure looking to the
retention of the gold standard, to the maintaining of the Government
notes to be issued at a par with gold; but if the object is not that,
i f the object is to pile up silver dollars in the Treasury, and to put
out Government notes, payable in silver dollars, until gold and silver
part company and we go to a silver basis, I admit we do not want to
give to the Secretary of the Treasury power to redeem them in any­
thing except silver dollars.
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Mr. TELLER. Mr. President, there is no silver anywhere to be
damped on this market. The Senator from Oregon gets up and talks
about Roumania having forty or sixty million dollars. He makes that
statement on a newspaper article.
Mr. DOLPH. I beg pardon of the Senator, I did not do any such
thing.
Mr. TELLER. What did the Senator make it on?
Mr. DOLPH. I made it on the statement of M. Ottomar Haupt, a
citizen of France, a resident of Paris, and, next to Dr. Soetber, the bestinformed man on the silver question in the world.
Mr. TELLER. Published in the newspapers of the country?
Mr. DOLPH. No; 1 did not get it from the newspapers; I got it
from a statement over his own signature.
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Mr. TELLER. Where is this great store of silver to come from, if
we dispose of Roumania ? * Suppose Roumania had $40,000,000 of sil­
ver? I do not remember whether it was $40,000,000 or $60,000,000
that the Senator said.
Mr. DOLPH. Twenty-five million francs.
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