, 1876-04-22
TIE SILVER QUESTION.
SIX Points TO be Considered I'm thts Cs,.
EecticH.

SIX Points 10 be Considered I'm this Con.
HectioH.
a bill passed the House, providing for The
redemption of fractional eurrepev IN silver
coin. 1t met with considerable opposition :;
but the weight of argument in the debate
was on the side of the advocates of the bill.
We will attempt TO convey in outline a cor
rect idea OF the state of the question.
l. There is at present lying in the treasn-
~, unemployed and drawing 10 interest, re-
Gently coined silver TO the amount Of fourteen
million dollars, with several millions more Of
silver bullion which the mint is rapidly con-
/ verting into coin
2. A large portion of the fractional cur
reney Is so worn and defzced that it can not
remain much longer in circulation, and there
Is necessity for exchanging it either for new
fractional currency or for silver coin.
j. The silver coin is at present worth
about two cents less on a dollar than legal
tender notes, SO that the Government would
gain two per cent By paying out silver for
the detaced fractional currency to the extent
that ii has unemployed silver already in It's
! possession.
! 4. The idea that pnper fractional currency
costs nothing. or ue1t to nothing, Is delu
sion. The actual ye.rly expense of replae-
ing the worn ont fractional currency Is uear-
| ly million and a half of dollars, as appears
| by the following official statement:
| Expense incurred by tie Bureau of En-
CRAVING and hitting. OS2 52l 20
| Expense incurred by the currenry dlys-
ION, SeeIetary's Ottice----.........-.. GOG60 90
| EXpense incurred by the Registers
! Once. Cj,s1e 20
| Expense incurred by the United states
Treasurer's office. ................... 1851 90
! Expense OF express charges OF fractional
! currency to and ffUm TTtaSurers
Office ........................... 9Ol5I IS
Total...-...-.--.-- sI,4Io,7ss 95
! Now, as silver coin, when once III circula-
tioD, does not require this heavy expense for
constantly replacing it, it is evident that the
Government gains nothing by the substitu-
tion of paper for silver. The fractional cur
rency wears ont by incessant handling in
about year, whereas silver coin will last
forty or fifty years. The Government might
as well pay interest On some additional silver,
as to incur an equivalent annual expense for
replacing the deiaeed paper.
., The danger that the silver coin, if put
in circulation, would b. melted down and
exported. is ianeiful. So long as the mari ct
value Of silver Is two per cent. less than the
market value Of greenbacks, the silver will
not be bought mp for ,xportatiOn, because
there would be no gain, but Il loss. At The
present price of silver, gold would have TO
rise TO l20 as estimated in gresnbacks, before
there would be any profit in Withdrawing The
silver from circulation but gold has not been
20 high as 10 since 1871. There Is az addi-
/ tionui protection in the fGct that the alloy in
| the silver coin makes its nominal value great
| er than that of silver bullion. California has
! taken four million dollars of silver coin, pay
ing for 1t in gold at par, and the silver Is kept
| in circulation on the Pacific coast IN lP!te Of
lis d5preciatiye value. Every community
must have money for small Transactions, and
SO long as the amount is not excessive, imper-
alive business wants will maintain it IN cir
culation. A silver dollar will buy as mul h
as the gold dollar in any San Francisco shop
The silver coins would accordingly Be kept
in circulation in spite of temporary tiLctua-
tions il the price of sI.ver-in communities
| like California by he fact that j. can aot =iso
above the value Of greenbacks without such
gross mismsnagcmeut On The part of Congress
as would carry god to a higher figure than
II has reached within he las five years.
6. The present low price of silver makes
this favorable opportunity for substituting
it for the fractional currency When our sll-
yer coins passed out of circulation silver Was
worth in London sixly-One pence an ounce !;
it Is worth only fifiy-tbree pence per ourcs
At present We shall, therefore, be able 10
! reulaee our stock Of silver com al eight pence
! or about seventeen cents NJ ounce less. 1t Is
not probablr that the price OF silver will sink
much lower than il Is at present. AT all
| events, The London Economist Of March 18Th,
! arp,ues in an elaborate article that when the
Bank of France resumes specie payments
- there will 10 a very material rise IN The
value of silver rs compared with gold. If
tbi, be a sound opinion 10 occasion could be
more ouportuae than the present for cheap!y
restoring our silver currency ior minor trans
sctions.-N !. HsTa!a.