The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1870-12-17 00:00:00

THE SILVER COINAGE.

In connection with Mr. 'romlint's recent letter on
this subject, " Vigilane " has sent the following to The
Times, for publication :
Mr Tonsil., by sendlog for pnblication In your Journal
the letter which he has recently addressed to the Muter of
the %lint, courts the ordeal of pulAlc discussion respecting
his shilling saltation. Like the unfortunate Emperor of the
French, he voluntarily rushes into coral!st, blindly confident
of victory, but strangely unconscious of the aeskness of his

?dr. Tomllne calls upon the Master of the Mint to coin for
him standard silver to an unlimited amount, upon prestsely
the same principle as that on which he is entitled to claim
the unlimited coinage of standard gold. This very demand
aft rtis concluelve proof that the party making it is either
forgetful or ignorant of the essential distinction which exists
between the gold and silver coinage of this c ,untry.
Me gold coinage circulates by virtue of its intrinsic value.
Gold rosy therefore he safely coined to any extent. If the
gold coinage becomes excessive in amount, that excess is at
once corrected by remelting the sovereigns or exporting them
through the operation a the exchange& Depreciation of
the gold coinage thus becomes imposaible.
Not so, however, with respect to the silver coinage. Our
sliver coins Jo not circulate by strtus of their Intrinsic value.
They are merely a token coinage, the exchangeable vaine of
whida is maintained solely by limitation of amount The
silver coin. If Issued In excess, could not be remelted or
exported without heavy loss. Depreciation, therefore, of our
silver coinage is perfectly pofliblo; indeed, It Is at all times
a danger against which it Is necessary to take effectual
security hy limiting the amount
Mr T.unlinek demand, if acceded to by the Master of the
Mint, would at once remove that tecurity. Silver would be
coined to an unlimited extent, and the exchangeable value
of the coins not being secured by their Intrinsic value or by
limitation of amount, the silver currency would become de
predated, ard the hardship and injosticenecerearlly incident
to thl depreciation would press principally upon the working
Masse..
_ . . _

Let us trace these principles In their practical operation.
A pound of &Linderd silver Is worth, to the open market,
from Goa to 61. In gold, hut, if edned at our Mint, this
pound of silver will be coined into GG shilling.. This arises
from the fart that a seignorsge is charged upon our silver
colon, so that they thus become coins of token, not of in-
tenets value. . . . .

Mr I omline, sending his pound of standard siker to the
Mint, will, el course, expect to receive In ret.n his 64
shillings • and, if every holder of silver Is entitled to make
the mune 'demand upon the Mint, of course silver to an un-
limited extent will he sent In for coinage. Shillings will be
multiplied loth finitely ; thee will be in excesi; and that
execs* cannot be corrected by remelting or by export. The
limitation of amount being no longer in force, the silver
coins will become depreciated in other words, twenty
shillings In silver will no longer be as efficient as a sovereign
In the purchase of commodities
What will be the consequence nf this? A workman em-
ployed by Mr. Tomllne, say at 10s. a week, applies to Mr.
Towline at the end of • fortnight for the payment of his
wages. Mr. Toodine tenders to him with proud satisfaction
twenty shillings in silver, lint what is the reply of the
workmen? Sir, I thank you for your benevolent intention
In having manufactured so many shillings for the special
benefit of my class, but we find that these shillings, since
they have been so largely increased in quantity, do not go so
far in the market as they used to do. I shall consider It a
kindness if you will pay me a sovereign Instead of 20 shil-
lings.
In thialetter little more can he done than indicate the
course at reasoning by which a correct judgment on this
subject may he ordained. To those who understand the
principles on which the coinage of this ceuntry Is founded,
the Whiny which has misled Mr. Tomline must, I venture
to believe, be transparent. But it Is Important that the
eubJect, if possible, be rendered intelligible to the
comparatively uneducated. To be the true friend
to the working man, benevolent intentlm must be
controlled and ill r,,cted by competent knowledge ;
the Impulses of the heart must be directed by the Intelligence
of the head. No increued power of employing labour will
be obtained by an indefinite coinage of shillings. Ile who
possesses a sovereign can always command in exchange for
It 20 ; and the standard silver which Mr. Tronline
wiishea to have coined at the Mint will at all times, if sent
into the public market, command sovereigns.
The only possible result of an unlimited coinage of
shillings will be a depreciation in the exchangeable value, or
the purchasing power of th de shillings, thus lowering rho
value of the working man's wages, unless he protects him.
self by requiring payment In gold.