The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-01-17
From the Boston Jotirnpi.
The Scarcity of silver.


The scarcity of silver coin is more and more Sc
verely felt by our business men, and is producing
serious Inconvenience, particularly to our traders.
Silver is now sold by the brokers at a premium of
five per cert--an increase of about two per cent
within one month This scarcity of silver is not
confined to this country. In England, the value of
silver compared with gold has increased about
three per cent within one year. In France the gold
twenty franc piece Is worth in silver but nineteen
francs and forty centimes. In other countries
the continent there is n great demand for silver,
partic ularly in the German States and Holland,
whittier much of the silver coin from England and
this country appears to be tending. Letters from
Havana report great scarcity of silver there. In
short there appears to bel general appreciation in
the value of silver throughout the world.
Various causes have been assigned for this evil
prominent among which are the following: let,
the greatly increased production of gold from the
placers Of California and the mines of Russia; I'd,
the increased demand for silver coin 10 pay the
rlies on foot in Germany; 3D., the boarding of silver
by individuals the continent, in consequence of
the unsettled condition of Europe during the past
two years; 4th, an alteration Of the mint laws of
Holland in June last, by which the gold coinage is
called in nd silver substiuted and 5th the greatly
increased consumption OF silver in the manufacture
of articles of luxuryan increase which is not at
tended with proportioDate incrt in the produc-
ton of the precious metal. We do not propose to
discuss the question: which OF these causes will ac-
count for the scarcity. This question ia "a problem
which to solve would require statistics than it
would be possible to obtain. In our ud gmcnt, how
ever neither sufficient of itself account
for the effect. Each of them have probably had
less influence, and all of them have proba-
bly, combined to produce the result.
II may be assumed as an established fact that
the comparative value Of silver and gold has
changed, and the change is not, we CONCEIVE tenn
porary, but permanent. 1t is an undeniabe fact,
that nearly all the American silver mines are
growing less and lees productive and il ia believed
that the production of silver does not keep pace
with the consumption. The force of this remark
will be manifest to the reader who will take the
trouble to reflect for moment on the many new
uses TO which silver has OF late years been applied.
Wares plated with silver by the eectrotype pro-
cess, silver pencils and pen-holders, svering OF
daguerreotype plates, are some OF the articles OF
modern luxury that absorb a quantity OF silver,
which in the aggregate amounts TO an almost in
credible sum, and undoubtedly enhances the value
of the metal.
To meet this relative change of value of silver
and gold, requires action on the part OF Congress;
and the legislation this subject, 10 be ovctual,
must ee immediate. In this country an arbitrary
relative value Is fixed upon silver and gold both
being made legal tender The proportonate value
of the former TO the latter is 10 sixteen, or,
in other words, on ounce Of gold is made oi equal
value TO sixteen ounces of silver. Ii is well known
chat gold and silver are liable to fluctuations IN
value, and the consequence OF this arbitrary stand-
ard of valuation is, that we are forced 10 pay our
debts 10 foreign nations in the metal which Is un-
dervalued. The present standard Of value was
tablished in 1894. Previous TO that time the re
lativc value OF gold and silver one 10 hteon
tnc IOflntt DelDH unupfNaluCu, anu consequently
being premium and in demand for eXporta
ton. Now the is the case, and our exports
of specie consist almost entirely of silver coin Oi
y 760, 900 in specie exported from New York dur
ing the last six weeks of 1880, all but $4,000 was
in silver. This drain, taken in connerion with the
large quantities of coin annually melted up by ell
versmltbs, threatens to deprive ms oi the bulk OF
our ANAL currency, including the much decried,
but now greatly prixed Spanish quarters, eighths,
and sixteenths.
II is in the power OF Congress 10 remedy this
evil, and the emergency requires prompt action
The coinage of silver at the mnts should be in
creased and the silver coin should be ailoyed SO as
to redpce IT TO it's relative value compared with
gold. In England, measure OF the character was
adopted in ls46 when the silver coin was reduced
in weight Gold ia there made by statute only abon
ii IS times as valuable as silver, whereas in the
United States the act Of Congress makeslt sixteen
tunes valuable This fact of itself, shows the
necessity Of reducing the valuc OF our siver COINS
to prevent them from migrating to otner countries
where their worth is more appreciates, or from
finding grave in the crucible Of the silversmith.
1t has been stated that MIR. Chandler, of Pcnnsyl-
vania last week asked leave 10 Introduce resolu-
ton 10 diminish the value of our silver COINS The
following is the resolution offered by Mr. Chandler:
"Resoiued, That the Committee on Commerce be
directed to inquire into the expediency OF reducing &
the value of the silver coinage OF the United states
! by diminishing their weight, or increasing the
| proportion of alloy in the same, or BOTH so as 10
prevent their expectation; and that they have leave
! TO report by bill or otherwise.
Leave to introduce this resolution could only be
obtained by unanimous consent, and, as Mr.
/ Sweetser, OF Ohio objected, Mr.. Chandler was
obliged to Withdraw his motion, We trust II will
! be renewed under more favorable circumstances.
A correspondent of the philadelphia Inquirer says
the object of Mr. Chandler ia 70 make gold only the
! legal tender for large sums, and TO use the "rc-
dueed" silver a subordinate or subsiaagy spe-
oies of currency, principally for the purpose ol
change This is the case in England, where gold
coins are the legal tender only, in all payments
above forty shilhngs, and the great bulk OF silver
being considered as bullion Is cold by the ounce
! the price varying az that of all other articles OF
] merchandise, according to the supply and demand