, 1877-05-20
THE SILVER BITT,.

lions concerning the bill recently passed b,
the Legislature Of Illinois making silve
coins of the United States d legal tender il
tho payment of all debts, public and private
in the State Of Illinois, except in coses whera
payment otherwise is stipulated in the con
tract. He writes ns follows:
ID The Editor or 1As Tribune.
CHICAGO, May 1O.-WiH you be kind enough tc
give your opinion of the effect Of the recent legs.
| laton in this State making silver coin legal
tender within the limits Of the State. What cf-
feet will 1t have on foreign capital loaned in this
Stafes Will it apply to debts contracted prior to
the laws taking effect: Will statement or con-
tract IN note gfvcn for debt due in the future
stipulating for payment in any other circulating
] medium be good in the face Of this enactment,
Will itnot create demand for silver coin in this
State? Would thank you for your views. Truly,
ETC., SUBSCRIBER.
We do not pretend to say whether this
law will make silver legal tender on debts
contracted prior to the date Of the law, but,
reasoning by analogy from the decision Of
the Supreme Court Of the United States in
the greenback cases, we should say that this
law will make silver a legal tender in all
contracts payable in Illinois, without refer
ence to the date, On this point, however,
there is but little room for any practical dis
cussion at the present time,
For the same reason there is no room
at present for the other question, as to
whether this Inv will create O demand for
silver in this State. The silver coin of
the United States, except trade-dollars. is
In 4
silver was at its ordinary value, these coins
Qess than dol1ar) were intrinsically worth
but about 95 cents as compared to the silver
dollar This was to prevent their ex-
portation by giving them money value at |
home greater than they could have elso-
where. This coin is only minted by the |
Government, and is only issued in such
quantities as the Government may prescribe, t
and is only to be had in exchange for green
backs. As silver coin, therefore, cannot be
aad except for greenbacks, there can be
10 motive to pay debts with it in I
preference to greenbacks. It is only
n case the coinage Of these small
11ver pieces should be made free that thev
an become depreciated to the extent of Of
er1ng an advantage in their use in p1ace of
,reenbacks. Since 1858, when these small
liver coins were reduced in value, thew have
'een coined only. BY the Government. The
'ruft Ton their coinage has always pertained
0 the Treasury We do not understand |
hat 1t IS proposed to change the rule in this |
espect, and, therefore, SO long as We have
reenbacks, and silver coin can only be had |
! exchange for greenbacks, there will hard I
: be an imitation of that part of the currency {
} the extent Of depreciating it.
The advocates of free coinage expect only 4,
lat the silver dollar of 1793-1873 shall be g
stored as Legal tender, and that the coin (
5e OF this be made free at the Mint. This !
cans that any person may deliver silver in | '
II form at~the Mint, and receive in ex- T. Q
7ange therefor silver dollars to an equiva- S
Mt sum, less the cost of coming. This Il
[ver dollar is, at the present prices of silver I
etal, equal in value to the greenback in {
I'D but the demonetization of the silver il
'liar and its free coinage would create d
ch q demand for the silver metal | IL
would advance the dollar nearly, O.
Aot au41e, " par Wild gold. ST
ahl this is done, and SO long as the minor
yer coins arc worth less than greenbacks B
gold, there is no probability of an intia-
N Of silver coin. So long as the silver can p
ly be had for greenbacks, and SO long as &c
. greenbacks are worth more in gold than o.
3 silver, the probability Of paying out I'll
aenbach for silver in order to pay debts AZ
tn the latter Is a very remote one. The 81
nil silver is now q legal tender for five ae
liars in nl parts Of the United States, and 81
king it a legal tender for greater sum in til
S stoto cannot, under present circum- az
noes, create any special flow of it to Iii d.
ts. tic