Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-08-07

ency questions letter to the Secretary Of the Trea
sury, December 81, 1929, says Of England
While pretending to exclude silver she admits it, and
makes il legal tender for all that multitude Of daily purchases
and contracts under 40s over-raed value. This IS in
fact issue of aulteated money which does regulate
itself which, of the profit in the coinage there
strong temptation issue beyond what is actually wanted for
the object nended which, being rredeemabe is therefore
sable to vcuaon between Its nominal and intrinsic value
and which, by its connexion with the 20 and 40s gold coir
deranges or may derange the whoe system Of British
currency. .
Again, Mr.. Gallatn, in his /" Essay Banks and Cur
renoy" says of the British silver COIN
This debased coin is attended with the inconve-
nence paper currency issued by Government There is
account Of the profit temptation to issue too much and
no sure can be found Of the amour. want
rQcy il appcahp 4ts wo<thy of thrt England,
ns hslsnee e ssiogls ysadsrd should have
snd ~ etbas ~ tstsil !t isebxIsss
actually vented for eectg small must
Misrepresentation Should Government be moderate in its
issues facility with which that coin may be-
feited illegally initiated and put into circulation, u
maey defeat the object intended In the should
be such that the retailers of every description who
obliged take in silver inappcabe TO wholesale
purposes could dispose of the surplus they must to in
denfy themselves add something the prices We believe
this to be already the fact and that this like every other de-
preciate currency operates tax which principally
those who compelled to purchase any thing by retail
The bill from the Senate it may be repeated proposes
that for small transactions to the amount of five dollars
payments shall be made in silver coins almost per
below their present weight that the small trader,
having cn these deprecated tokens would in order to
discharge his own debts for five dollars be
obliged them into gold currency of some sort
at prenium of this per cent The Secretary of
the Treasury be sure would attempt to avert this by
limiting this coin in numbers and keeping 1t short of the
demand bupthis would be only limitation of specie
currency and have the effect Of driving from market
the silver bullion which ought to have from Mexico
and South America. Indeed, the bill proposes in
dspenssbe part of the system that the mint shall
chase bullion out of its bullion fund.- and that the amount
coined shall be regulated by the Secretary Of the Treasury
while private deposori forbidden making deposites in
order obtain small coin 1t is proposed, in short to
give the Government the whole control of the silver bull
lion that is to be coined in amount pieces and purchases
of said bullion If silver bullion trade should increase
with Mexico, Chilli Peru, and Bolivia, it is to be hoped
and expected it will, in consequence of closer
nexon with them by steamships and in consequence of
the greater productveness of the silver mines from the
now comparatively low price of quicksilver and the of
machinery to lose nearly all the benefits of the
increase by shutting up market for silver bulon and
driving it to other countries whose mints coin it freely
| and where it is y standard of value
The peculiar condition of the gold and silver mines of
the world just should make exceedingly cautious
what steps take, if take any. That the relative
value of gold and silver in the process of revolution is
highly probable; but when where that revolution is to
end il is impossible with the facts before fore
see The present comparative value of gold and silver
established by law in the United States, is
to 1888, nearly to 16 but if gold goes ncreas
ing in production expect in California, and
others report in Australia and there be proporonate
increase of silver, this relative value must eventually
change and gold become much cheaper compared with
silver To make gold then If this be the sole
value would be revolutionize investments obga
tons of debt by enabling the debtor pay in gold per-
worth only to ten when he contracted to
in geld worth to sixteen. No man just now can
how much gold to deprecate, if any depreciation
is take place Ii is quite certain there is to be the
depreciation if the production Of the silver mines is
stimulated but of that increase there is great pro-
hah In he hefh
of quicksilver and the Of machinery, and the
proximity of the silver mines created and brought
about by Pacific possessions, and increasing
intercourse the lsthmus of Panama and by Lake
Nicaragua. All we say now is that it is dangerous
just this probable revolution in the production Of the
metals is taking place. to make the other the sole
and exclusive standard of value for there is to
look not only for great change in the relative value OF
coin and commodities within twenty years, but also ip
the relative value Of gold and silver Tables in cir
cuaton estimating that the proportion Of gold to silver
in 1869 will be nearly half of each metal when in
lS49 the proportion about onefourth gold to three
fourths silver and from 1909 1849, period of forty
years. the proportion twothirds silver to onethrd
gold Estimates only, such this, from practical men,
| should make us very wary in what steps we take
The audable object of the bill from the Senate is to
restore to the country the silver coin which has been
taken from the United States Of late in part from the
mistake of the gold bill of 1884 where silver coin
underrated in part from the convulsye effort made in
Holland TO exclusive silver standard; and in
part IT be- from the greater increased production Of
gold over silver since California and Australia production
has been added to that of Siberia The Secretary Of the
Treasury, in his annual report, says:
The relative value Of gold and silver coins is
10 159SS, aud the bullion value Of silver coin in Eng
land 1915 being difference Of 272 housandth
per cent 1t follows them a course that
all occasions where the foreign trade requires
heavy shipments abroad silver coin will be first sought
after for that purpose at premium and consequently
will disappear from circulation"
France il may be added rates silver yet lower than
England that is, as to l5499-three per cent. lower
than the United States that is say Of pure
gold in the United States produced from the coinage Of
1888 Of pure silver whereas in France the
ounce Of pure gold is produced from only 15499
of pure silver OF course then neither France
England will gold be sent from the United States until
silver is exhausted.
This condition Of the currency may demand
dy; but what remedy aud chen is the important
question Nothing is fatal to than mis-
takes made in the standards of value and to pre-
sent i'll should be flying to others that
We have already that Of the first effects Of the
Senate bill win be appreciate the silver dollar to
il out Of circulation and therefore to stop its coin
age This silver dollar has been the money unit by which,
since the formation Of the Government taking for
model the weknown Spanish dollar we have determined
the value Of gold II is argued with great force that this
money unit should disturbed either in theory
practice and that il make any change it ought to be
the gold coinage by increasing the weight OF the eagle
ceasing to coin eagles, and then coming pieces with
new names and devices containing the value in gold Of
81 So $40 worth Of standard silver Another effect Of
the Senate bill win be to appreciate the present half
dollar and quarter TO drive them Of circulation
Every half dollar in circulation will then be worth
81 cents less fraction; every quarter Of dollar u
cents less fraction and Of dimes and half dimes.
The bill debascs degrades the coin that will