The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-01-16

respondent addresses itself OF the great topics OF the
dsy-the appreciation in the value Of silver coins. their
increased expectation, and the consequent scarcity Of
small change The whole subject curious, and is treat
ed with his usual ability by correspondent This -
subject which Is producing much discussion. both ia
England and IN this country We have consequently APP
pended to our correspondents letter interesting money
article from the London Times
From our Commercial Correspondent
NKw YosK. Jan. IA, Tuesday,. p. IN.
The difficulties in relation silver coin appear be on
tho Increase Small coin, compared with this day last
year, are worth as follows;
Gold dollars. Spanish Mexican Five-franos. Y; s. 4
dollars. dollars. dollars
1887 Pr pa. Ct Dr. prs% y GENTS Ssa,: pIs%
During the year about ton million dollars In silver have
been exported TO Europe, besides considerable quantities
OF small coin TO California In the period,
mentioned In my last letter, the mint has done nothing
wards supplying the small coins II has turning Cal
orna gold into S20dolar pieces a when the scar
aity OF silver raised gold dollars for per cent pre-
mium Under this state of affairs, Mr. Chandler Of Penn
sylvania has made motion towards an inquiry into the
expedency OF reducing tho value OF silver CON-
Its expectation This appears to be altogether i-timed
Changing the value of the silver coins involves
the Phadeiphia mint is utterly inadequate the coinage
oil gold from California, Il into useless double
eagles instead Of the pieces demanded by the wants
OF commerce Nearly all the silver which has been
exported Is foreign coins brought here by
ed had
it been coined into American pieces These are not
money ia Earopo, and will not pass as such until
they are recoined which costs about II per con
sequenty, neglectng to coin the silver the
standard, Is giving premium the export. Mexican
dollars, 10 well know contain fraction of gold which
pays for the coinage in France. The in New York
which was defeated for the selfish purposes by the
Philadelphia delegation would have greatly checked the
growing scarcity Of silver. In The of this neglect 10
propose TO alter the standard momeA so "a
this-that is when the silver is gone for Of
seems to be little absurd
have said that the changing Of the standard of silver
now would be inopPortune and that is will be shown by
attempting reply 10 The question, what shall the
standard be fixed II the relative value of silver ID
god mas changed per cent In year. what will be the
value when the coins OF the standard shall have been
issued! You cannot fix standard until the relav W. vaa
OF the two metals become settled. The relative valnes
which they now possess result from singular combna
ton oil circumstances, which may may not continue
exercise an influences and may well ecur TO these
although discussed their operation year since tend
ing directly the Of affairs which now exists When
| our mint was established. making both gold and silver
legal tender the relative value of the
70 be 10 TO This low causing coined gold 10
be Immediately exported Europe To remedy this evil
the gold bills of 1884 and 1887 passed The former re-
duced the quantity OF fine gold in the eagle making value
0bSloo per cent more in proportion to silver. In 1887
quantity OF alloy in silver coins reduced in order to
equaize its proportion to that of godviz 9lOhs ne By
changes the relative value OF gold was
nearly l6 until the discovery of California Il is probable
that notw Outstanding the productions the Russian mines
this proportion was about right in usual years In some
years. however, political circumstances affected tenn pora
rly the value OF either metal As general thing, however
the foreign coins of here merchants and in
the pockets of immigrants. The silver expended in
trade to considerable extent found its way coun
try banks where il assorted and packed and at the
close Of the spring trade New York for sale
bullion brokers, who supplied exporters with foreign
coins Thus, small proportion of the specie which
came into the country actually became United States cur
rency When the indie pendent
ton under Mr. Walker he took that the receipts of the
government should be coined, and metallic currency
rapidly increased The two metals however and went
according the demands Of trade being little
by mint laws which in fact dead letter the
false location of the mint. simultaneously with the Cali
iona discoveries which greatly enhanced the supply
gold the revolutions in Europe broke out causing an I'M
usual demand for silver, which in all those countries is
the legal tender This demand was considerable ex-
tent, for boarding. and followed by government de-
mands for military purposes The pay OF the soldiers be-
ing in SIN all sums is distributed in silver which is paid
into the hands Of those who hoard it, This positive
demand for silver altogether independent of the California
gold. and would have affected the price OF silver had that
gold been discovered The discovery Of the gold how
ever increased the demand for and diminished the sup
plies Of silver Thus the Of Holland abolished
the of gold tender, and silver the of $l0
600 900 has been required gradually replace it, Some
have followed the example, and the
French ministry have project of law also dsuse gold
tender. This tendency OF the government laws still
further promotes the demand On the other hand very
many aDandoned gold
mines But probably beyond this influence has been ths
speculative action OF bankers In the view OF possible
depreciation of gold, or what's the same thing, the apPro
citation of silver, all those into whose hands silver
brought into the country by immigrants gradually collects
and who formerly sold that of the year when
price highest have attey held to 1t, looking
further material advance. All these circumstances of
HANGED demand hand, and dimn shed pply
Other tend elevate the price Of silver OF the
gold supply At the time the supply Of gold has been
sufficient lower its price in comparison with silver,
had that metal maintained il, position unnhuenced by pol
1t and speculation. The substitution Of gold for silver
currency has esseped the demand for the former
degree that IL increased that for the latter. The ccum.
OF the two metals have consprcd to the end
viz raise the and lower the other-ma
itself in rise In the premium silver That the rise in
silver is altogether the result OF abundance OF gold Is
shown in the fact that gold dollars have risen per
premium, in consequence OF demand for circulation
Thus in 1880 the mint coined 1928 20 OF double
$3.50 each) and only AL 953 gold dollars although the
port from New York $40 900 900 silver At the same
time the mint coined 343oooo in silver that to say 1t
supplied gold and silver $500 oOO replace s. 600 900
exported ia small coins. Gold dollars of
premium, and what is OF advantage to wing bank
er small bank in demand absolutely needed
for use, while the mint turning $40 pieces only to
make a show of usefulness. The old policy was TO coin
small pieces and allow the banks only large nocs
The policy coin large pieces and encourage the
banks to Issue small This Penn.yvan mint bank
Interest in the midst of the operation of causes
OF which are temporary, and perhaps Of them pema
nent to work and alter the silver standard
Gold dollars are at per cent premium for circulation
because there Is mint TO coin them Of the large
ply OF material furnished from California and the remedy