The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-04-01
The silver Question.

|
The silver Question.
A bill passed the House yesterday proyid-
ing for the redemption of fractional currency
in silver COIN 1t has 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
brief outline a correct idea of the state of the
question.
/. There is at present lying in the Treas
ury, unemployed and drawing no interest,
recently coined silver to the amount OF
fourteen million dollars, with several
millions more of silver bullion which the
Mint is rapidly converting into coin.
q A large portion of the fractional cur
rency is so worn and defaced that it cannot
remain much longer in circulation, and
there is a necessity for exchanging it either
for new fractional currency or for silver coin.
s. 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 defaced fractional currency to the extent
that it has unemployed silver already in it's
possession.
4. The idea that paper fractional currency
costs nothing or next to nothing is delu-
sion. The actual yearly expense of replac-
ing the WORKOUT fractional currency Is
nearly million and half of dollars, as APP
pears by the following official statement:-
| Expense incurred by the Bureau of En-
craving ana frlnting SLooz,ozA ~
| Expense incurred by the currency divis-
ion. Secretary's Office. ................ 60660 90
Expense incurred by the Registers ofhcc 5,770 90
| Expense incurred by the United States
| Expense Of express charges Of fractional
currency to and from Trcasurer's Office 0I51 IS
| Total OBSERVATION-DISCLOSURES l,4l0 TAG 95
! Now, rs silver coin when once in circula-
ton does not require this heavy expense for
constantly replacing it, it is evident that
the government gains nothing by the substi-
tuition of paper for silver. The fractional
currency wears out by incessant handling in
about year, whereas silver coin will last
forty or fifty years. The government might
as we'll pay interest on some additional
silver as to incur an equivalent annual
expense for replacing the defaced paper.
| 5. The danger that the silver coin, if
put in circulation, would be melted down
and exported, is fanciful. So long as the
market value of silver is two per cent less
than the market value of greenbacks the sill
yer will not be bought up for expectation,
because there would be no gain, but loss.
At the present price of silver gold would have
to rise to 100, as estimated in greenbacks, be-
fore there would be any profit in withdraw
ing the silver from circulation but gold has
not been so high as 100 since 1871. There is
an additional protection in the fact that the
alloy in the silver coin makes its nominal
value greater than that of silver bullion.
California has taken four million dollars of
silver coin, paying for it in gold at par,
and the silver is kept in circulation
on the Pacific coast in spite Of its depre-
ciated value. Every community must have
money for small transactions, and so long as
the amount is not excessive imperative bust
ness wants will maintain it in circulation. A
silver dollar will buy as much as gold dol
lar in any San Francisco shop. The silver
coins would accordingly be kept in circula-
ton in spite of temporary fluctuations in
the price of silver-in communities like Cali
fornia by the need of small change, and in
our Eastern communities by the fact that it
cannot rise above the value of greenbacks
without such gross Encouragement on the
part of Congress rs would carry gold to
higher figure than it has reached within the
last five years.
6. The present low price of silver makes
this favorable opportunity for substituting
it for the fractional currency. When our silver
coins passed out of circulation silver was
worth in London sixty-one pence an ounce;
it is worth only fifty-three pence per ounce at
present We shall, therefore, be able to re-
place our stock of silver coin at eight pence
or about seventeen cents an ounce less. 1t
is not probable that the price Of silver will
sink much lower than it is OF present. At
all events, the London Economist of March
| IS argues in an elaborate article that when
the Bank of France resumes specie payments
'there will be a very material rise in tho
value of silver MS compared with gold" If
this be sound opinion no occasion could
be more opportune than the present for
cheaply restoring our silver currency for
minor transactions.
| An Example from Boston.
The telegraph announces that Abraham
Jackson, of Boston, has been sentenced to
ten years in prison. Badly informed people
| may lump ut the conclusion that Abraham