The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-08-14
The Silver Surplus.

In q recent article we controverted
the common statement that silver was
deprecated as a currency. We main
tanned that, as to the price of commodi-
ties, the purchasing power Of silver is
equal, ii not superior. TO any other cir.
culaung medium now employed amongst
us as currency. And as gold is not
currency now used in the purchase Of
any commodities, it can not be said that
silver has deprecated as to gold, simply
because their rated values is not actual,
but merely speculative.
In the same article it was also main
tanned that the present silver surplus is
the result of accidental circumstances
not permanent in their nature. Among
these was the unexpected decrease OF
demand for silver to meet the usual bal
apee OF trade in favor OF India and the
East, in consequence of failing crops, of
desolating disease, and suspended pros
ecution Of public improvements in those
silver absorbing countries, whereby sill
yer necessarily accumulated in Europe,
and especially In England, whose trade
with India was thus disturbed and di-
minished.
We now proceed. as in that article
proposed, to consider other causes for
the silver surplus that is now causing
80 much comment in the financial circles
of this couatry and Of Europe.
e tl,o 4
Germany in relation to the demonetiza-
ton OF silver by her law. Upon this
subject there have been much eXaggera.
tion and Iooseness of statement as to
matters of fact. 1t has been asserted
that, by reason OF this action, Germany
will thrust $500, ,0oO 600 of silver upon the
markets OF the world. Even if it were
true that Germany had that amount ol
silver to dispose OF, she would naturally
desire to realize the best possible price
for it. To lhrustit all upon the market
at once would certainly depress the
price, and she must become loser by |
the depression. To presume that the
German tnanciers could be examples of |
such arrant stupidity as this would i'm
ply is simply preposterous. Hence the
statement so commonly made and 30 |
generally credited is utterly absurd.
There is another good reason for deny
ing the fact that Germany is to flood |
Europe with such a volume of silver:
She has not $2e0, 900, 600 of silver to sell;
perhaps not over one-ffth part of that
sum. The amount that she may be will
ing to spare has been estimated, upon |
good authority, as low as $40, ZOO, 900.
And in no case could her surplus, after
her own subsidiary coin, ex-
ceed $100, 900 600. And IL is now come to
be well understood affair that these ex.
aggerations upon that subject have been
altogether a "bear" movement among
the London spectators in the silver
market. A recent letter from the Man
ager OF the Berlin bank plainly inti-
mates that these statements about the
silver Germany may have to sell are
mere fctions proceeding from the stock
Jrokers in London.
Granting then that Germany may
rave forty or eighty millions surplus
ilver to sell, what is that to amount to
when distributed over the world where
'veF silver money is employed9 Some
effect it might produce, But even if ap
preciable, the effect would be but trif1ing
aud temporary. But these ''great ex-
peetatiens" of disturbance by the sud
den pouring out OF the silver Of Ger.
many can never be realized. They may
serve the stock -jobbing schemes Of Lon
don Spectators, who see In restored
commerce with Asia a large demandfor.'