The daily union. [volume] (Washington [D.C.]) 1845-1857, 1852-04-03


Our readers aware that the bill which reported
by Mt Hunter. chairman OF the Committee on Finance,
reducing the amount of bullion in the silver coins less
than dollar, has passed the Senate The expectation
Of silver and the consequent scarcity OF the smaller coins
called for effort to remedy great inconvenience
in everyday lransacons and the Senate has adopted
that of reducing their actual value below their nom-
nal value so that they shall constitute legal tender for
larger than they represent articles of export
or as a medium for foreign payments.
When the public attention FIRST called 10 the fact
that silver was being exported in considerable guam
titles, the wing presses charged that il was owing
entirely to the operations OF the tariff OF ls4s, al.
though they were unable to show by their protec.
tive theory why gold was not eagerly sought after
for foreign remances. We exposed at the time the
groundlesess OF the complaints against the
laws. and explained the cause Of the phenomena they
were said TO have produced. Congress had fixed the
relative value OF the two metals The law said that one
ounce OF gold should be worth thirteen ounces OF silver
and in tina, proportion each should be legal tender
Tha, proportion in accordance with the relative
value Of the metals when the law passed. and oil
course there nducement to export the one rather
than the other This state Of things continued until the
discovery OF gold in California. and the vast addi-
ton from that quarter to the amount of gold bull
lion. The relation between the supply Of and de-
mand for gold which formerly existed was destroyed
by the greatly increased supply, and, As natural
consequence the value Of silver rs compared with gold
became greater One ounce OF gold longer worth
thirteen ounces Of silver, because II had become more
plentiful But the statute remained uuaercd, and
ia conflict with the laws which regulate commerce. which
made silver valuable than the &C, Of Congress al
lowed il to be. The consequence was. that
specie export made necessary by importaons from
California merchants found to be to their interest to
purchase silver with gold, and send TO those countries
in which ], would be received a, it's full value BY this
process the supply Of silver coins became 90 limited that
gold dollars bore premium at the same time that silver
did result which was aided by the circumstance that
the mint furnished an inadequate supply OF those pieces
compared with the supply Of the larger coins
Had the California pacers furnished gold and silver in
the same proportion then there would have been no
greater inducemen to export the than the other and
our smaller coins would not havs been driven from cir
culson But in that event. there would have been
large specie export. The United States il now the
great specieproducng country. as s the great cotton
producing country; and there il the same reason for
exporting the that there is for exporting the other
But II not purpose to explain the causes Of the
expectation Of specie from the United States. II was to
set forth the for that scarcity OF silver coin which
has produced such inconvenience to call for the action
Of Congress The bill which passed the Senate reduces
the bullion only in coins less than dollar; and i will
have eject those coins. similar to thst which
equivalent change in the relative value OF gold and silver
would produces. and win prevent their expectation while
the amount Of depreciation equals the se in the value
Of silver a. compared with gold