Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1876-04-07
SILVER Resu nm ptiOD.

The various financial measures pro-
rosed in Congress have all either been
directly rejected ty vote, or else have
fallen hopelessly into disfavor; and
only the silver resumption scheme re-
tains any vitality. 1t will probably go
into operation. and will be produc-
tive of some good, but it cannot be
regarded as a step toward specie re
sumption.
The reason of this is that specie
itself is deprecated. and is worth no
more dollar for dollar than paper
money-at least there is very slight
difference, and the values fuctuate.
Gold alone is the standard. Silver is
not recognized as money, but as
merchandise, like zinc and copper,
more valuable of course, but not
money. To redeem deprecated paper
money, therefore, in equally depreci-
ated metal, is certainly not resumption
of specie payments.
The causes of the depreciation of
silver are chiefly the immense produc-
ton of it by the Bonanza" mines,
standard in Germany. One of the
Germany was the silver standard of
money. The recent adoption of the
gold standard in the German empire
has demonetized about $3.50, 900, 900
of silver, and converted it thereby in
to merchandise. This, of course, must
lie for considerable while as a dead
mass, for the uses to which silver can
be proftably applied are comparatively
few. 1t is probable that silver will
huctuate In value, remaining, how
ever, considerably below its old coin
value until its cheapness opens or ex-
| tends its uses il the arts. That may,
in return. enhance its price. The
| shipment of silver bullion to India
and China, where it is stiIi money,
will also enhance its value, and in time
| it may so nearly return to its old coin
| value as to be again serviceable as a
| standard of value.
But there are, nevertheless, some
reasons why silver may be profitably
used to redeem the fractional currency,
and if limited to that will accomplish
certain good. The amount of silver
now on hand in the treasury is nearly
sufficient to redeem the fractional
notes. The value of the silver is so
near the value of the deprecated pa
per that the seignOrage of the coin and
the paying of the expenses of printing
the fractional currency will make the
silver resumption of the fractional cur
,ency rather profit than loss. to the
government The extent to which
Europe is now plugged with silver
from the causes already mentioned
it is very improbable that the silver coin
will be drained out of this country.
There Is, however, one important
practical. consideration. The useful
ness of silver coin is in proportion to
it's smallness. It is more important to
call in the ten cent and fifteen cent
notes, than those of twenty-five and
fifty cents. 1t seems therefore de-
sirable 20 call in the ten cent notes
first, and to follow this up with the
twenty tives, and last of all the fifties
The moral effect of this will be of
more value than mere fnanciers
aud statisticians are apt to con-
slider. For after all, hope aud con-
tideuce and credit are important fac
tors in money questions. The politi-
co-economical aud mathematical con-
siderations may be largely ontwelghed
| by the merely emotional ones of hope
and fear. Fear is the most in
portant element in all panics. Hope
and confidence are main stays of
enterprise and prosperity. The
| tinanciers may prove conclusively that
! this silver REDEEM ptiou of the fractional
currency does not help specie redemp-
ton, but the people at large VII not
accept their conclusions. and when
they see silver exchanging for paper at
| the face value of the latter, it will have
| a good effect on business. The old
traditional values of silver coin will
remain, and people in general will not
think that the silver is cheap, they will
think that the paper is better. This.
we repeat, is worthless, except in the
moral and educating effects in favor
of hard money and gold redemption,
The experiment of SILVER resumption
is certainly not a costly one. The
blunder, should it turn out to be one,
will involve very small amounts and
the thing is wortny of a trial.