indrance, but, if issued in excess of such demand, they
will at once tend to displace gold and become the sole standard,
and gradually, as they increase in number, will fall to their value
as bullion. Even the fear or suspicion of such an excess tends to
banish gold, and, if well established, will cause a continuous
drain of gold until imperative necessity will compel resumption in
silver alone. The serious effect of such a radical change in our
standards of value cannot be exaggerated; and its possibility will
greatly disturb confidence in resumption, and may make necessary
large reserves and further sales of bonds.

"The secretary, therefore, earnestly invokes the attention of
Congress to this subject, with a view that either during the present
or the next session the amount of silver dollars to be issued be
limited, or their ratio to gold for coining purposes be changed.

"Gold and silver have varied in value from time to time in the
history of nations, and laws have been passed to meet this changing
value. In our country, by the act of April 2, 1792, the ratio
between them was fixed at one of gold to fifteen of silver. By
the act of June 28, 1834, the ratio was changed to one of gold to
sixteen of silver. For more than a century the market value of
the two metals had varied between these two ratios, mainly resting
at that fixed by the Latin nations of one to fifteen and a half.

"But we cannot overlook the fact that within a few years, from
causes frequently discussed in Congress, a great change has occurred
in the relative value of the two metals. It would seem to be
expedient to recognize this controlling fact--one that no nation
alone can change--by a careful readjustment of the legal ratio for
coinage of one to sixteen, so as to conform to the relative market
values of the two metals. The ratios heretofore fixed were always
made with that view, and, when made, did conform as near as might
be. Now, that the production and use of the two metals have greatly
changed in relative value, a corresponding change must be made in
the coinage ratio. There is no peculiar force or sanction in the
present ratio that should make us hesitate to adopt another, when,
in the markets of the world, it is proven that such ratio is not
now the true one. The addition of one-tenth or one-eighth to the
thickness of the silver dollar would scarcely be perceived as an
inconvenience by the holder, but would inspire confidence,