New-York tribune., 1876-07-28
SILVER INITIATION.
yAUsBs OF SILVER DEPRECIATION.

document on the Silver Question that has recently
been published Is the report of the Committee OF the.
British Parliament appointed to inquire into the
causes of the depreciation of silver, the conclusions
of which are appended to this letter. From 1t we
NAV derive the following facts which should he
fully considered by Congress before it takes definite
action on th subject The causes of the deprecia-
ton of silver are:
/ Increased production Of from SiOO0O,OOO or
$40. 600 900 worth of silver in 1850 to S70,O0OOOO
worth in 1875, an increase of at least T21,OoooOO
a year. q
.. The sale of less than &5OO0O,OO6 of silver by
! Germany with from S5O,OOOOOO to SlOO,OOoooo
still TO be disposed of.
3. The reduction of the stock of silver held in the
Imperial Bank of Austria, since 1871, by @lo'ooo'-
OOO.
4. The demonstration of silver in Italy since
| 1865 by the issue of irrcdccmable paper, thus
throwing upon the market about $4,000, 900 worth
of silver.
8. The sale hy the Home Government of Great
Britain of Indian Council bills, which RENTED
instead of silver, and have reduced the expectation
of silver To the East $50 900. 900 year below what
/ it was 20 years ago
6. The depression Of East Indian industries, which
decreases her ability to absorb silver.
T. The limi; placed on the coinage of silver by tho
Latin Union and Holland and the growth in those
countries of a sentiment in favor OF a single gold
standard.
The Influences TO arrest the depreciation are the
| following:
l. The heavy purchases of silver by France,
amounting 90 SIG, 100000 worth during the last
four years. These purchases cannot continue long,
and when they cease that viii increase the surplus
/ stock of silver thrown the market. OF all the
disposable silver in the market during the last iour
/ wears France has taken 81 per cent.
.. The purchases of England, Russia, and Spain.
! D. he proposed purchase OF S50,0oO'Ooo WORTH oi
silver by the United states for its subsidiary silycr
! coinage.
If we suppose that the United States will absorb
in it's subsidiary coinage the silver sold by Germany
and That France. England, Russia, and Spain CON
tinre 70 purchase in as large quantities rs formerly
(which is inpo>>ble for France. and II we also al
,it that austria and Italy have disposed OF all the
silver they have for sale still have an annual IN
creased production of S2j,0OO0Oo, and decreased
absorption by India, account of the issue "i ih'a
Councl bills amounting to S5OOOO.Ooo, making
an annual surplus of S75000,OOO for which no mar
kct exists, This surplus is likely 10 hc largely IN
creased by the partial suspension oi the purchases
by France and continued financial disaster III lnHi''
The advocates of the silver bills now propose I"
onep market in tie United states for this surplus
and coming them al the mnts. As the silver couid
not take the place Of our paper circulation, ~
showed in former letter il could hc used IN thl'
couutry only for those purposes which We u'e goId
for now I'm two year, the surplus from the Nv"
sources named would entirely replace the gold now
In this country without drawing dollar from ihr
accumulated stock in Europe From these facts IT
j. fair to conclude that the reconciliation oi SILVER
in this country would AT most check the dcprr.a-
tion Of the value Of silver temporarily and # II I'-
stored il 10 il, former value could not MAINTAIN u
/ there permanently. When the decline again took
place il would entail great loss upon this country ~
the holder Of large quantities of this metal. The
following is the extract from the English paIlia-
mentary report
| To sum M the more striking facts which have been
brought before bur Committee, the uaiiou at the pres
/ cnt moment appears o. be tAs:
J. TIE total annual production OF silver hn7 risen I"
upward of al loooo0o fr"n an average "i about -
ou1IU' of tt,s sI1n Of AlIo0o 900 the mines of the
United States are estimated to have poru',l "p"u'
years to come ON the other hahd' 'hr Pc 1i 7''r
should remain low at present 'hc'c may DC SOME
3 Germany h's an 10 d-r"se Of an "monn, which i-
certainly uoi lss than A-,"DoVpo WIN ,hr Io,-ln!,l
that il NAV exceed 42U,OUuUGu; but WITH the p"H-i!
on l, Other hand mat considerably larger .In than
the estimated amount may be ultimately required Ioi
The scandinavian kingdoms have discontinued tnc
use of silver; bui tn amounts 81 'n' '
which l., have thrown can throw on the market i'
= Ki,r. .as apparently brcn exchanging silver for
gold t.c amount -ly held M the lul"ilM BInh nav
/ in diminished uOm &loOOo,ouo l" @'1op'o'' H"''
g. ialy a, been gradually dcnudod Of her silver cur
. rrucy since -G5 large amounts have been exported
her forced ptp'r cuu'Hcy mas apparently chF'.I'd ln'
amounted al tie D.gnuDs Oi l-CG, 90 aboat 1l'VOo-
T. France on The other hand has for some years pas,
been r l ~ ,iHpg her stock Ui silver OF Wich duihE
the last her imports have cA'ccd'd h'i axe
ports by 33,jOJ.OOO
| = Engand Russia, and spain have each been buyers
! TO the cNiun. Of come millions. , -
o. spau and emma ana OiIcF countries III thc last
I have absorbed % .rtain amount.
10 India sl takes silver, but IN grca'y decreased
H. The Home Government has bills 10 sell 10 uc c1-
tent of GlJOUJOUO per anlin, when d"nt"I' in ihA
buy ~ the place 81 rcmihg bul""i ms loi" ha,
been gradually reached, and rpi,.,h,s an 'N',,S VI
MOI, tLan &lO,uOO 900, compared WIN - fcil7 axe"
IL TIE rcmauc's 81 silver To- India dnlsf , ths
last years iavc 0ccn 4l5,OooO %, compared Win
| 81 100000 iu The fOir previous years
| Icgisdtiyciy, !nc position Is a. follows:
/ Germany j. gradually d,mpnctizIng silver ana IOOhn
forward to It's unc only iOr subsidiary coinage.
The United sLics j. carry Ing out Iph'y oi MIRO
dUcinC silver subsidiary coinage m tbo ihGe "l an
iiact onll paper currency afpat, ana oi coming
iulI-wcI.hcd silycr CONS, but "ny on contracted
scale and only available ior legal tender ioi hhcd
The members Of the Latin Union ana Holland have
adopted cXI'ccant attitude; but meanwhile hnIt' ~
fII as possible, The coinage OF silver
No indications given Uf any intention on ir part pf
Russia and Austria 10 ass any laws with regard to ther
currency.
The actual facts which have been enumerated speak
for themselves and IL wall seen Of thc.n
favor OF rise In the price Of silver and which ~
them tend ~ contrary direction. II h. important, too
that the temporary character OF THESE facts, and
the normal character OF others, should h, fully takcn
INTO account lhe surplus sioc" OF Germany "I III al!
probability weigh hcayAy ON the market for some time
10 come; stll II Is temporary circumstance. On the
other hand the United States VIII AFFORD temporary relief
10 the market by reiainS for her own coinage consider
able amounts OF the silver there produced IL is indeed
possible, according 10 the evidence adduccd, thai he
| United states Wi! retain as much SILVER Ior her
operations Germany may nave to sell the