In 1806, with the year's production of silver fifty and one-quarter times the year's production of gold, we see the coinage of nearly $200,000 worth more of gold than of silver for the year. In 1818, with the year's production of silver forty-six times the production of gold, the coinage of gold is seven times the coinage of silver for the year. In 1852, when the production of silver had fallen to four and one-half times the year's production of gold, the coinage of silver is five times the coinage of gold for the year. And when in 1806, the gold and silver coinage. of France was so nearly equal for the year, with the production of silver fifty and one-quarter times the year's production of gold, we see the average market price of gold at 15.6 times silver, governed, we infer, by this effectual mint price of 15.5. In 1818 with the coinage of gold seven times the coinage of silver, and the production of silver forty-six times the year's production of gold, the world's market price averages 15.4, as governed by this mint price, 15.5.

And notwithstanding the timid scream of Chevalier and others in 1853 against the further admission of gold into money, gold seeming then to threaten to rival iron in its abundance, the mints of France continued to accept all tenders of gold and silver, and continued to govern the world's market price composedly until 1871, when war with Germany interfered. And the result, which finally appeared after the closing of her mints in 1874, reported to the Paris conference 1878, was a stock of gold and silver money afloat and in bank in France, exceeding $700,000,000 worth of silver money and $900,000,000 worth of gold.

The late De Laveleye, in his "La Monnaie et le Bimtéallisme," 1891, makes plain that all the divergence between the French mint price and the London and Hamburg prices for gold or silver, from time to time during the seventy years, was within the aggregate of the costs of a shipment of the momentarily cheaper metal to Paris and the charge for mining there. And, as observed already, the mints of France had little appreciable assistance in their governance of the world's market price for gold or silver during any consecutive important period of years. Note once more that the population of France did not exceed 36,000,000 and that their employment of money was within an area of 203,000 square miles; and that the present population of the United States approaches 67,000,000, whose demand for money is for a circulation over an area of territory exceeding 3,600,000 square miles. And recollect that her mint price for silver, the value of silver in her existing 5-franc pieces, is at the rate of 3.06 cents on a dollar higher than ours. This means that if the mints of the United States were open to unlimited coinage for our silver dollars, the French would prefer to ship their gold rather than their silver money in any bullion settlement with us as our debtor in trade. The same preference to ship gold rather than their silver money to our equally open mints would appear in the case of any of the European nations except England. England's preference to ship us gold in trade settlements due us, rather than her silver money, would exceed 7 cents on the dollar.

And note finally as to France, that while her unrestricted mints accepted and coined gold and silver without limit during periods when the year's production of silver was only four and one-half times the year's production of gold, and when the production of silver was fifty and one-fourth times the production of gold, governing the price of both metals in all markets the while, the year's production of silver was only twenty-three and one-half times the year's production of gold in the world in 1892, and is proportionately less just now-twenty-one and one-fourth times for 1893.

TABLE C D.

The world's production of gold and silver in periods from 1493 to 1890: Soetbeer. The same for the calendar year 1891: United States Director of the Mint.

The proportions of gold and silver relative to the sum of the two, for each period; and these proportions according to value, at the French mint valuation of 1 to 15.50. The relative weight of the gold and the silver produced in each period; in other words, the "ratio of production," i. e., the "intrinsic value" (?) of either measured by the other, if production determines value.

Average "market-price" for each period, i. e., average relative value of gold and silver in the open market-London and Hamburgh: Soetbeer, and United States Director of the Mint.

Coinage of France during seventy years to 1873, while her law allowed equally unlimited access for gold and silver to her mints on private account, at a valuation of 1 to 15.50, for emission in unlimited legal-tender coins.

Mints of France from 1803 to 1873 equally open to gold and silver on the valuation of 1 to 15.50. See coinage table annexed.

Coinage at the mints of France, from 1803 to 1870 in said periods, valuing the franc roughly at 5 to the United States dollar.

Years of noteworthy coinages, in better evidence of the automatic regulation of the “market price" of gold and silver, by the mints of France.

In 1871 Franco-Prussian war was waged, followed by French payments of indemnity to Germany. In 1873 Germany's sales of silver began, the United States having demonetized silver by act of February 12, 1873.

The full legal-tender silver coinage restricted, by Latin Union agreement of 1874; stopped finally by agreement of 1878.

LATIN MONETARY UNION.

The Latin Union did not appreciably enlarge the ability of France to maintain the parity of her gold and silver coins; that is, did not add to the ability of France to maintain bimetallism independently. The coins of all gravitated to France.

France compacted with Belgium, Italy, Switzerland, and later with Greece also, a union whose purpose was "to rid their several people of annoying conditions of intercourse and business transactions resulting from differing valuations of silver in the subsidiary silver moneys of these several States, and with the purpose also to achieve a uniformity of weights, measures, and moneys among them."

This Latin Union was formed December 23, 1865. It provided unlimited coinage and the unlimited legal-tender function for gold and for silver 5-franc pieces, thus exceeding its first aforesaid intent. The union was maintained with this unlimited 5-franc piece included until 1874 (under Germany's sales), and thereafter with a continuance of subsidiary silver coining under restrictions until 1878. Except that coining silver has ceased, the union remains in force effectually. Each State made the authorized gold and silver coins of all receivable and payable at its public treasury. Each State contracted to redeem its own issues

of subsidiary silver in gold or the 5-franc pieces of the State asking the redemption.

The evidence of the independence of France in her bimetallism, her independence of her associates in her maintenance of the parity of gold and silver money, is easily made manifest. Much of all their gold and silver money gravitated to France, and for the reason that in Switzerland the rate of exchange on Paris was so frequently and so continuously at a premium; for the reason that the same was painfully true of Belgium, as the late De Laveleye records; and for the reason that the like was glaringly true of Italy, whose only currency became irredeemable paper.

The population of France barely reached 36,000,000, and the territory over which her money circulated was less in area than 202,600 square miles, before 1865. The combined territory of Belgium, Italy, Switzerland and Greece and their combined population, were respectively, 166,500 square miles and 37,500,000 people. The aggregate popula tion of all the Latin-Union States, therefore, did not exceed 73,000,000 and their combined area was less than 370,000 square miles.

The present population of the United States approaches 67,000,000 and promises to exceed 85,000,000 within ten years, whose employment for circulating money is over an area of 3,600,000 square miles.

AUSTRIA'S MONEY.

As for Austria-Hungary, while at heavy cost incurred in the purchase of $100,000,000 of gold at a premium, her stock of that metal may have been increased to that extent. Nevertheless, in no right sense of the word can it be justly asserted that the monetary system of that Empire has been established on a gold basis, even approximately. If her mints have been coining gold every week during the last year, so, too, have they been coining silver to a material extent, and thus increasing the volume of its silver currency as well as that of her gold. As recently indeed as the 15th of March, 1894, the monetary situation of the Austro-Hungarian Bank was as follows:

Gold
Silver

Making a total of.

$50, 268, 363, or 39 per cent. 79, 261, 480, or 61 per cent.

129, 529, 843, or 100 per cent.

Note circulation, $194,228,000; that is no less than 61 per cent of the present stock of specie in the Austro-Hungarian Bank as recently as the 15th March, 1894, was of silver.

Gold commands a premium in Austria thus far still. She does not redeem her paper in gold as yet, and will not if she abandons silver. Her already burdensome debt of nearly $2,000,000,000 increases almost every year.

AFTER RECESS.

The CHAIRMAN. Does any member of the committee desire to submit any further questions to Mr. St. John?

Mr. CULBERSON. I want to ask him a question. In view of present conditions, Mr. St. John, what would you have this Congress do?

Mr. ST. JOHN. Shall I offer a bill? Shall I give you a bill to offer in the House if you approve it?

Mr. CULBERSON. You can answer that question just as you think proper.

The CHAIRMAN. Your answer is that you would like to have the following bill enacted?

Mr. St. JOHN. That is it.

Mr. WARNER. Let it be read.

Mr. CULBERSON. He need not read it; he can briefly state the effect of it.

Mr. JOHNSON, of Indiana. Let him briefly explain its contents.

Mr. ST. JOHN. I find a wide difference between explaining a thing and giving the thing itself.

Mr CULBERSON. I think you had better read it.

Mr. ST. JOHN. I should like to read it. I think I can take it up by paragraphs, which I believe to be the method of legislation. The CHAIRMAN. Read it and then make your explanation. Mr. St. John read his proposed bill as follows:

A BILL to restore the bimetallic coinage system of the United States, and for other purposes. Be it enacted, etc., That upon the terms and conditions and charges prescribed by law for the like deposits of gold owners of silver not too base for the operations of the mint may deposit the same, in amounts of not less value than $100, at any mint of the United States and receive therefor silver dollars containing each 412 grains Troy of standard silver.

SEC. 2. The standard silver dollars of the United States are hereby required to be received for all dues to the United States and are made receivable and payable for all dues and debts, public and private, within the United States.

SEC. 3. Depositors of gold and depositors of silver as aforesaid, at any mint of the United States, shall receive therefor on their request, instead of the coin to which they shall be entitled, coin certificates of the United States which shall be redeemed on demand of coin. And depositors of gold coin and of silver coin, other than subsidiary coins, at the Treasury or any subtreasury of the United States, in sums of not less than $20, may receive the herein-provided coin certificates therefor. And no gold certificates and no silver certificates and no Treasury notes authorized by act of July 14, 1890, entitled "An act directing the purchase of silver bullion and the issue of Treasury notes thereon, and for other purposes," shall hereafter be issued. SEC. 4. The herein-provided coin certificates shall be redeemed in gold or silver coin, at the convenience of the United States; and the Secretary of the Treasury is hereby authorized, in his discretion, to redeem the same on request in gold or silver standard bars, at the like convenience of the United States.

SEC. 5. The Secretary of the Treasury is hereby required to reserve on hand, in coin and standard bars, an aggregate sum of gold and silver equal to the aggregate sum of the herein-provided coin certificates outstanding, except as hereinafter provided.

SEC. 6. The Secretary of the Treasury is hereby authorized, in his discretion and under regulations which he may prescribe, to direct the Treasurer of the United States, from time to time, to receive, at the Treasury or any subtreasury of the United States, interest-bearing bonds of the United States, duly hypothecated to the Treasurer, and issue therefor safe amounts of the herein-provided coin certificates as loans at interest. The rate of interest to be required on such loans of coin certificates shall be in every case the same as the rate of interest payable by the United States on the bonds hypothecated therefor: Provided always, That the aggregate sum of coin certificates issued for deposits of interest-bearing bonds of the United States shall not reduce the aggregate sum of coin and standard bars reserved for the redemption of coin certificates below 60 per cent of the aggregate sum of all coin certificates outstanding.

SEC. 7. The coin certificates provided in this act shall be received for all dues to the United States, and shall be receivable and payable for all dues and debts, public and private, except where otherwise expressly stipulated in the contract.

SEC. 8. All authority of law for the transportation of standard silver dollars for private account at public expense, in exchange for other lawful money of the United States, and all other acts and parts of acts in conflict with this act, are hereby repealed.

Mr. ST. JOHN. I should like to explain that before any question is asked me, while I think of what I want to say.

The proposal to make these coin certificates a legal tender with the limit proposed, gold and silver coin being made equally unlimited as legal tender, is in order that the New York Clearing House banks shall accept these coin certificates as it does the Treasury notes of 1890, which are just so limited, in settlements of daily balances.