THE BATTALION.
9
contained. But when a nation had a double standard and
the value of one metal went up and it was coined at the
old ratio, it was, under valued, worth more in bullion than
in coin, and immediately went out of circulation. The re
sult is a single standard. For example, if a nation coins
gold and silver at a given ratio, the value of silver is in
creased; but if it is coined at the old ratio with gold, it is
under valued, and immediately goes out of circulation, and
the result is a single gold standard. But if the value of sil
ver decreases and it is coined with gold at the old ratio,
speculators go to work exchanging gold coin for silver
bullion, and their profits are regulated by the per cent, of
the decrease of the silver.
But again, if silver goes down, its coinage stopped,
and gold alone coined at its intrinsic value, silver is over
valued, worth more in coin than in bullion, and therefore,
both gold and silver remain in circulation so long as the
government is able to hold it at a parity. People are wil
ling to take silver as money because it is backed up by
gold to its face value. On account of the continual change
of the commercial ratio of gold to silver, nations have
found it impossible to maintain a double standard with a
fixed ratio.
If we trace the ratio of gold to silver from the earliest
times, we find that there have been a continual “bobbing
up and down,” as it were, between the ratio of these met
als. Even in the early years of our republic the ratio was
15 to 1. From 1836 to 1878 the ratio was 15}^ to 1. In
1898 it was 38 to 1. But my opponent will tell you that
the cause of the great fall of the price of silver since ’78