The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-08-10

the world. Even the truthtulness Of this
may be challenged also. II such diff
ference exists, how is it knowns Ger
tainly not by ordinary market quota
tions founded upon actual transactions.
There are no such transactions.
The inquiry then arises-whv is our
silver money under such a cloud at the
present timer The answer to this ques-
tion involves the consideration of vari-
GUS circumstances connected with the
monetary conditions and legislation OF
other nations as well as of our own; and
which we here can but epitomize.
England was the first country to de-
monetize silver. She did this sixty
ears ago. In 1877, during the long sus-
pension of the Bank of England, when
an act Of Parliament was pending to
compel a specie resumption within a
fixed time, 1928 this step as to silver
was taken. The reasons for this were,
that England and France were both
strugg for recuperation after the
waged against each other during the
meteOric career Of Napoleon. The tinan-
cial legislation of France had been 50
devised that the gold of England was
steadily flowing into the vaults OF Paris,
leaving England only her silver coin age
in the larger proportion. In order to
put stop TO this outflow of her gold,
then needed as preparatory to resump-
tion, England demonetized her silver,
and at the same time passed an act max
ing the export of gold ON private account
Il public misdemeanor. BY thus demon
etizing silver, her gold became the legal
tender for all sums above 40 shillings,
and was of necessity retained for use
among her own people. The outflow OF
her gold was stopped, and the Bank OF
England was enabled to resume in 1921,
TWO years before the limit fixed by law.
1t is thus seen that this first demone-
tiZation Of silver did not proceed from
any difficulties attending the use Of the
concurrent coinage OF both silver and
gold, but as ceuntereheck to adverse
legislation in neighboring nation.
Moreover, EHgland's relations to her
great provincial Empire in India were
such as to make this step for the demone-
tlZation of silver of essential imp ortance
to her home interests. India had then
and has now a currency exclusively OF
silver. India paid then and pays now
an annual tribute TO the mother country.
That tribute was payable i'll the currency
of the mother country, gold or its equlva-
lent. 70 remit that tribute, the Home
Government sold its silver bills on the
Indian Government at gold, or home
rates, to merchants trading with India.
BY this means no silver really came
from India to England. The bills oil ex
fact, silver had to be remitted from Eng
land to India to the extent of $25, 900 0O0
to meet the balance OF trade in favor OF
India, which thus became an absorbent
OF silver.
During the Indian mutiny the ex-
penses of the Home Government there
exhausted the tribute and much more,
leaving nothing for remission to Eng
land. Directly after the mutiny great
railway enterprises in India We're en-
tered upon, rs matter of military ne.
cessity as well as Of commercial expe-
diency; and this expenditure again eX-
hausted the revenues, and lefv no remit
tances for the Home Government. But
these causes Tor expenditure having
now ceased there is an annual tribute
of So, ,00O, 900 payable by India to Eng
land, which is exhaustive of her silver
supply TO be poured out into the lap OF
Europe. At the same time the crops Of
India have for successive seasons
failed. Her unWholesome plains have
been scourged by pestilence and famine.
She can no longer be an absorbent Of
silver, because she has nothing to
sell. Silver has therefore of late
accumulated in Europe by reason OF
this closing up of its ordinary Asiatic
outlet. This, however, is but a tempo
rary suspension of its usual flow. India
and China, the great absorbents of the
worlds silver, are not going to be al
ways thus depressed by natural calam.
tiles. And these accidental circum-
stances, which can only be temporary,
resulting in plethora olsilyer in Europe
and its consequent relative change Of
value, surely ought not to be the founda-
tion for our panicky legislation demon
etizing that which three-quarters of the
globe still hold as money. AS well
might we legtslhte to undervalue mer-
cnandise, or produce, when some acci-
dental circumstances had conspired to
overstock the markets.
The effect of the action of Germany
and of the Latin Union on this point, we
must defer for future consideration.
An Epidemic.