Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1876-08-12

DC NO longer 16gAA L61ucI except IOr |
government taxes; the result Of this
was. first, the paying into the treasury
Of large quantities of silver, and Sec
ondly (since this was not sufficient to
absorb all the silver which had been
thus demonetised) the export of that
metal to those countries in which it
was still a legal tender-but this
brought about counter legislation in
other governments.
THE LATIN UNION. Certain gov
ernments in Europe had by interna-
tional arrangements come to act as q
unit in monetary affairs and to this
combination the title above given of
the Latin Union had been assigned, it
included France, Italy, Belgium,
Switzerland and Greece. All these
nations in 1873 maintained what was
called the double standard in monetary
affairs, that is their minis were by law
compelled to coin any quantity of gold
or silver that might be brought them.
In rough way this arrangement was
calculated to maintain a balance in
the market value of the two metals,
as, if one threatened to become too
abundant, men would coin the rarer
metal for its greater purchasing value
and export the other to markets
where it might be more in demand.
Now remember that Germany had de-
mOnetised silver and moreover that its
government had on hand a large amount
which its people had paid in in taxes
which it was threatening at any time
to throw on the market and so depre-
ciate further the comparative value of
that metal, causing serious derange-
ment. Had the Latin Union adher-
ed to their double standard the silver
liberated would have gravitatedt to these
nations, it would have been used to
purchase the dearer metal gold, which
would have been coined and soon re-
stored the equilibrium. From various
motives this was not done, France at
that time was in state of national
evaporation with Germany and un-
fortunately thought more of thwarting
the policy of her enemy than of sound
political economy; she refused to coin
more silver, which was virtually re-
fusal to take that metal from Germany,
and thus we have half the nations of
Europe anxious to sell silver and the
other half refusing to take it.
The commercial relations of Eng
land with her Asiatic colonies are at
this time such as to diminish the coin
exported to those colonies (Which has
always been done in silver) and the
same thing is true of China and Asiatic
nations generally-we have no space
here to investigate the causes of this,
suffice it to say that in the judgement
of those who have studied them they
are causes which in time necessarily
bring on a reaction and the effect can
not be relied upon as permanent.
All these circumstances go to show
that it is not too much silver in the
market which deranges the balance
but an apprehension of what may hap
pen-an uncertainty caused by the ap-
prehension of Germany throwing her
accumulated silver on the market be-
fore the depression in the Asiatic de-
mand can abate.
Nothing depresses any market so
much as uncertainty, and the precious
metals are subject to this law as well
as all other articles It is most i'm
portant to bear in mind, that almost
all the causes of the present deprecia-
ton of silver are, in the estimation of
the best judges in Europe, deemed
transient in their action.
The time will certainly come, and
very likely soon, when the silver to be
expected from the sales of the Ger
man government will be known quail
ity, when the silver tide will again
gravitate towards Asia, when the
Latin Union which has demOnetised
silver will remonetise it; and suppose
that legislation should be adopted in
this country of such a nature as to
make the silver dollar legal tender
to all amounts, as is now proposed in
Congress, it is evident that this would
vastly increase the other tendencies
which seem likely to restore the infe-
rior metal to its relative value. Our
legislators therefore, would most likely
find that whatever their purposes,
these would be most likely frustrated
by silver resuming its normal value
before anything was gained by legisla-
ton grounded upon its present depre-
citation.
On the whole we deem it matter of
congratulation, that compromise has
been proposed and is likely to be
adopted, by which legislation is to be
suspended at present, and joint COM
mission of the two houses appointed
to investigate the subject. 1t was not
without dread that we saw a subject
demanding so much of caution and
deliberate judgment and careful in
vestigation rudely thrown into the area
Of party strife.
NOTE.-From paragraph in another
column it will be seen that silver has
already risen in value over four pence
eight cents an ounce, and that the
German surplus amounting only to
$50, 1000, 900 is nearly worked off. This
intelligence had not been received when
the above article was written.
The Hon. w. G. WitthOrne.
We have to acknowledge the receipt
from this gentleman, of the report of
the Committe of Naval Affairs upon