Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-08-14
COMMUNICATION.
MR.. BROOKS ON SILVER CURRENCY


dissent altogether from his conclusions which we propose
examine His objections the bill may be classed
follows
lst As abolishing for currency the dollar the money
unit the very basis upon which the whole currency Of the
United States has stood and now stands.
I'd. The using silver a token, as England has done
since 1916 He thinks there disputes and serious
doubts whether that works WELL and refers to Lord
Ashburton Horsley Palmer, and Mr. Morrison
3D. 1t makes gold the only United States standard of
value as il is in England
4th 1t authorizes in fact deprecated currecy to the
loss OF the small Dealers who would be obliged to sell this
currency at its intrinsic value, and quotes Mr. ngham
and Mr.. Gallatin in support of this view.
9TH IL will interfere with the probable increase Of
| silver
Now, we think Mr.. Brooks misapprehends entirely our
actual situation He forgets that the changes which he
deprecates already made. The legal and practical
basis Of currency since 1884 is and has been gold
The act of Congress of that year making gold coin
tender at sixteen times the value of its weight in silver
effected that change 1t in fact the avowed object Of
that BILL 1t was foreseen and oretod by the opponents
of the bill that the effect would be the Punishment of
silver from currency That process has been gradu-
ally going since 1884 At no time since then could
silver be had any quantity without premium In the
first place. the Mexican dollars which the coun-
try exported instead of going into currency
Then our own half dollars went to extent which inter
fered with making change in small transactions. The
evil has continued to increase until it has become in
tolerable.
The only question is what shall be the remedy? Shall
we retrace steps? That is impossible The nearest
practical approach to it would be reduce the legal value
Of our gold coin to fix the value of the eagle at nine
dollars and fifty cents, and in proportion of all the
other coins. In the time new coinage might be
authorized containing additional quantity of gold suf
fcen to make worth its present of ten dollars to
ula br;, Loal-
! pretty rapidly, and without convusion.
| But two questions arise In the first place. is this
change desirable? In the second is it practcable tits
settled the opinion of the best writers the subject
confirmed by all experience that adjustment of the
proportions of gold and silver make them pass
currently as currency for any length Of time The fuc
uations in the market value of these metals is
make one or the other worth premium Opinions vary
which metal is the most convenient the basis of circu
lation. England has decided in favor of gold France
has adopted silver rather her system has made silver
the only currency in her commerce. Gold at small
premium is used by travellers and the gaming tables
Our actual currency for many years previous to 1884
was silver Congress in that year raised the legal value
Of gold from fifteen to to sixteen of silver
This done for the very purpose of eectng the change
which has followed it, the making gold the basis Of our
currency of silver Has any thing occurred to make us
nently successful Could adopt policy more tickle
and Facilitating than return silver under existing cir
cumstances?
But even if the change desirable there diff
cuties in the way of bringing about which should make
us pause In the first place. there would be loss of FIVE
per cent the whole amount of gold currency be
borne by somebody. Surprising the gold coin cir
culation to amount to fifty Millions the loss il would
amount to two and half millions of dollars In equity this
loss should be borne by the Government and pretty
troublesome job would be adjustment Suppose the
loss fall the parties holding the coin at the
time of the law going into effect the bringing in such
bill would produce pretty scramble in the community
The banks would refuse to issue their notes or to receive
depotes 1t would derange all trade The change would
also utterly derange our fiscal system The subtreasury
system could not exist under silver currency.
The change is, then, in fact mpracticable as it is
undesirable. The remedy proposed for furnishing con-
yenen silver currency for small transactions is precisely
that adopted by Sir Robert Peel in 1875 preparatory to
the resumption of specie payments by the Bank Of Eng
land It's success has been complete No man can have
been in England without being struck with the simplicity
and beautiful working of their system An experience of
twenty-six years would seem to be sufficient
Mr.. Books quotes Mr. Morrison mot very high au-
thory) Of opinion that the system is vicious but he
does not show in what respect The idea that this
hands of small dealers is founded upon the supposon
that is issued in excess This easily guarded against
by amendment providing that the limitation to FIVE
dollars as legal tender should apply to the United
States but that the Government should receive this cur
rency in any quantity This is believed to be practically
done by the Bank of England
Mr. Books thinks the issue Of such currency would
Danish the small coin of the United States now in crcua-
ton but think not 1t could only be sold by weight
1t would Danish the miserable trash now current
from necessity 1t is probable the small silver currency
Of the city Of New York is the most debased to be met with
in any part Of the world.
Mr.. Books thinks there probability that there will
be increased production Of siser and that this mea-
sure will interfere with its coming into use Not at all
Should silver fall below the proportion Of one to sixteen
there is nothing to prevent Mexican dollars coming into
circulation at once being coined into the silver unit
dollar But such event not likely to happen during
the present generation.
On the whole, reason to wait for further e1
animation, as Mr.. BRooKs recommends As the matter
stands 1t is exceedingly simple 1t has been before us as
an impending necessity for several years.
Should the whole nation set to work reading Lord
Liverpool and Adam Smith, Ricardo and McCuloch and
the other writers reerredto might much puzzled
as Mr.. Brooks himself is for with all his study he
seems to have formed opinion what is best to be done
at least he has expressed This arises from his
having mixed up the abstract and difficult question which
metal is best the standard of value with the only one
which is having established gold as the basis Of