New-York tribune., 1876-08-05
THE SILVER CONTROVERSY
SILVER CANNOT FALL.

| CLUSIyELY U5Ep-PURCHAsINd POWER OF GOLD
ADVANCED = PAYMENT or BoSDHoLDERs IN
| SILVER EQUITABLE.
TO the Edtt0r OF The Tribune.
SIR: Opponents of the double standard have
not been able to meet tho argument suggested In these
letters already thar It is lawful to pay silver for all debts
contracted prior to 1873 Bat they entor the plea of
equity and upon two assertions viz, that silver
greatly declined in value and that 10 would decline
still II used By this country as legal tender. Tho
first assertion improved, and the second is absurd
not shown that the purchasing power OF silver has
declined In any country where 1t has not been by goy
eYmneutl Interference wholly partially dcmonetzsd
it viii buy nearly rs much OF the products Of human
labor generally as it weuld buy four years ago. By
business mcu whose dealings fa'narze them With the
range OF prices In sversng countries, the truth Of this
statement will be acknov lodged; and in testimony be-
fore Mr. Goschens Committee, Mr. Bageho gentleman
recogned as Of the highest authority in financial ques
tons stated that If there sho any appreclable rise
OF prices IN snch countries-as To- example in Indiahe
result would 30 to stimulate production Of colm0des
and thus 10 speedily eonnteract that change in com
eut.ng Upon Mr Goschen's report, The London Ecoao
mist says:
ri rlan that no such additional silver as would be re
of th Easi anyher5 exists. General prces there have
Ss ninnr % ~ ,red - 4 the relation Of silver to gold IN the
London market, and In tie markets guided by II.
lye,-s used s the sole of values and medium
of exchange by more than o0O,OOOcOO people. They
have in circulation in those vast areas Of the East
100 900 900 in silver. and an advance OF 20 per cent
in Drccs woald require additional supply Of $780,
600 COO beside the s3O000,O00 annually required TO
s,ppy the waste ard OF the worlds stock No such
s,ppy can be obtained Prices of commodities in the
Eastern countries therefore cannot thus advance aud by
onces there tine Of the whole civilized worlds
largely governed What, then must happen II the rela-
ton of silver geld chalges2 Not re OF prices In
49, l. 4. A,tf.
prices in godusng countries. The purchasing power Of
silver cannot fal without total change in those
regions where change is most slow and difficult. There
FORE ~ the relation the metals changes the result
must he advance OF the purchasing power Of
gold whether this position disputed OF not ia not
shown that there has any decrease IN the purchasing
power of silver In India and China, and it is ndisputaole
that there has been no such decrease to cause
siderable rise OF prices there
But u is true lat the price Of gold has risen, and that
remarkably Prices in all countries where gold The
me sure OF values have fallen very materially within tho
past four years The demonstration would be easy II the
necessary array OF figures could be given within tho
limits OF new wspaper letter. but 70 intelligent men who
know the coursc Of trade and prices 1t is sapcn0us In
This country since s73 gold has been practically the
only measure Of values and know what Las occurred
here England the al OF prices has been sch as 70
bring disaster every important Industry In GERMANY
though the task ofdemonetzng silver Is incomplete me
fail Of prices has caused comIlcrca ana Ihuusiii
disaster scarcely less than has been seen iu Great
Britain.
Evidently thcn the change within the past four years
has been ereat advance in the purchasing power OF
god prces in countries where gold Is the meas
ure have fallen there has been corresponding de.
in the purchasing price OF silver, hrs because
prices in syer-usng countries have not advanced, and
second the bullion price OF SILVER In gold has nos
declined as the average prices Of commodities
generally In golusng countries The average price u
silver for many years prior 10 1879 was from % to 6l
pence per ounce; il is little le-s than ol pence
with an upward tendency The decline has been less
than 90 per cent in the gold price OF silver. But the
average decline in The gold prtcc of other commodines
within years has been greater than 20 per cent
We are told that it is not equity to pay debts IN silver
becau.s its gold price has fallen But equity requires
bas We should pay the yalne. in purchasing power
as 10 commodities generally, that We DoGrOWcd- IL
not equitable the contrary 1t Is the very reverse Oi
equitable 10 demand that We, ha7ing promisedto to pay
gold or silver. should bay gold because its purchasing
power has greatly advanced
But we are told that II the use Of slrcri,
price will fa sin more. II by tins it is meant that he
ference bet wecn gold and silver in general purchasing
power III Increase much the moro unjust isttodemand
payment Of q greater purchasing power than We Oor'
rowed aud promised TO pay. But the statement s papa
bly, absurd Increased OF silver TO tho extent o enc
or two hundred millions caEnot les7en but vii surely
increase, purchasing power TEerc IS no reason %
expcct greater decline the gold price OF silver, unless
by governmental act Z: Is driven from its chief Use IN
other coun ues Have any right TO 10 that thing IN
order to enrich still further these who hold obligations
payable Only in g'ldi
Look again Al Mr. WcbsterS declaration that 1t IS
unconstitutional change the gold and silver STANDARD
ORIGINALLY established. II IL is unconstitutional TO impair
the ogon ol contracts it ia clearly unconstitutional
to require that debtor shall pay higher purchasing
power than ne borrowed aha contracted 20 pay BnJ NJ
Webster seems a. 30 yet iurtEer lie secin- to declare
tha. il would BE- unconstitutional TO change the standard
even git rcsgocs future contracts. Whyf Because
The c q woua be 20 alter by legislation iae value ~ AL
fz.i ;,t cu, OF property. On that point possibya
word or ;No ~ another time. o.
Nc.r- ycrt, ln!y ~. 1915.