The New York herald., 1877-07-02
THE SILVER QUESTION.
The Dollar of the Fathers Versus
the Dollar of the Sons.
RELATION OF PRICES AND COINAGE
Natural Laws and National
Necessities.
FALLACY OF A CHEAP CURRENCY.
A Lesson from the Wampum of
Our DUTCH Ancestors.
THE DEPRECIATION OF SILVER.
Prospective Inconvenience Of Bi-Dleiallic
Standard.
Laws and National
Necessities.
FALLAcY OF A CHEAP CURRENCY.
A Lesson from the Wampum of
Our DUTCH Ancestors.
THE DEPRECIATION OF SILVER.
Prospective Inconvenience of Bi-Meiallc
Standard.

DtuuuuIus
The following letter, reviewing tho silver question,
has addressed by Mr.. David A. ellis to Mr. Murat
Halstead OF tho Cincinnati Commercial in the columns
of which paper It appears this morning
WHY THE CHINESE PRECIOUS METALS.
In China the government long ago ceased 10 coin
the precious metals regulate the "value thereof"
Gold In China is not money. Silver is money; but
neither are coined. Both merchandise and pass
BY weight and nneness. But although the Chinese
has abandoned the coinage and regulation
of the value Of the precious metals it has abso
lutcly and entirely abandoned all coinage.
It provides one coln-and ono only-ior the use of
its people. namely, ugly coarse and comparatively
heavy disk, composed mainly Of iron, with little
"copper" cast and not stamped and bearing some rude
characters, letters or signs upon It's surfaces This
coin which is known among foreigners by the
namo Of s.cash," has value OF about one
mill, American money, and is made <e~fth
hole in the CENTRE Tor convenience cG 'striugng iB
tens and It's decimal multipIes 1t occasionally
drifts into the regions of Wesscrn civilization, and
doubtless often suggests rhe inquiry, 'How
any people use q coin 20 heavy and Of such trifng
value to any advantage in making their exchanges? ?
The answer is very simple one. The wages Of man.
nal LABOR In China general exceed fifteen or
twenty cents per day four money!; and these wages
servo for the support and toerabie comfort of the
great of the people, because in part by OF
the great stability OF values but mainly because the
fact that labor itself is the real standard value to
which the prices of all the products OF labor adjust
themselves, SO that China upon apparently small
wages a man may live well as in other countries
upon nom naly larger wages But whatever
may be the wages OF day in any country
they must be capable OF division into
many parts. in order to be exchanged for the many
necessities OF individual or family In
tries this division is effected by tho Of coined
tallc money But with wages at twenty cents per day
the use of coined gold would bo obviously impractical
BILE. The equivalent of days labor in gold would be
too small! TO be handled conveniently; the cquva-
lent Of an hours labor in gold would be
NO bigger than pins head. And In smaller degree
would be also the OF using coined silver
for eecting the division of wages ruling at tho rate of
fifteen twenty cents per day. quarter days wages
would be represented by silver com not large as
our nve-cent piece, ana an hours wages, which In
turn might buy pound of rice and perchance chop
stick cat It with, by piece Of silver larger In
circumference than the fiat surface Of small
spnt pea. Therefore the Chinese intelligently
discard the use of coined gold and silver.
and in their place have substituted tho
bulky and cheap, but at the same time admirable be-
cause we'll adapted and useful, cash, which sustains
the samo relations to their low nominal wages and
prices that gold and silver coin sustains the no-
inally high wages and prices OF other counries 200
pieces of "cash" dividing days wages Of twenty
cents into 200 equal parts fol convenience exchange
for commodities. and for Repayment OF taxes estim.
ated by a corrcspondingly low standard. Now, al
this comprises lesson OF experience which those in.
serestcd in tho question, TO what extent or shall
silver be made the crculatinf medium and IN tnstru-
mentality OF exchange In the United states, may 90
well to consider
1892 AND 1871
Eighty-ave years ago (wh,i tho dollar of the
fathers was first established tho average price Of
tho ordinary labor Of adult males was not IN ex.
cess OF forty aud iorty.nve cents per day. TTho
pay of soldiers in tho army vas 81 per month, and
one ration per day Of tho Niue OF twelve cents.
The military storekeepcr Il Springfield, Mass,
received $40 per month; a'ti1cers and armorcrs
at posts on the frontier SIS per month; United
States District judges s1,00 per annum; mos
scngers In the government onces $3.50 per annum.l
The prices OF all commodities conforming then now
the prices Of labor. also ,orrespondingy small
while cash transactions were exceedingly imiod Tho
fathers, moreover, were sta.-at-home people and
made but fow journeys journes OF any considerable
distance Under such cIrcumaonccs the gravity of
silver was matter Of very .iIte conseq and
was not then an inconvenient nsrumentsity for max.
ing exchanges, and for the reason that the heavy
cheap Chinese cash not an ncnvenient instrument
taliiy for making the prcseat Chinese exchanges
The present condition of affairs comparing 1877 with
1890, or with even 1S4o, period lty years later is
however, entirely different The Prices of labor and
OF its products have greatly advnced 1.-THE pay of
soldiers in the army is SIS per month and ration.
The military storekceper at Springfield, ass receives
$500 per month"; armorcrs from s. 75 to So so per
day; United states District judges s, 600 per annum
messengers in government Offices $3.50 to ST. 900 per
annum.] Now, everybody travels Comparatively, |
ana prooapiy absolutely, more people 20 every year
from the Atlantic to tho Pacific and vice ycrsa than
lty years ago from State to State Nevrocs now
travel in the Southern country ten tines MS mucn
probably, did ali the people in that section before
the Revolution. Now transactions a.c numerous
anu often very cStensive. Everybody carries mora or
less money IN their pockets II is lar from Unusual
LOT .on inasv'au"s 10 carry habinaAy much
| think OF starting upon any considcra-
pie Journey with any less sum OF money at their i'm
mediate command Under such circumstances Tho
weight or tonnagc OF silver becomes an element thc
Importance OF winch has thus lar been overlook ed m
considering the extent TO which this metal can In
future be used as currency. ~ IN
| THE WRIGHT SILVER
Eighteen dollars and fourteen cents ronYcs AN, al ~.
| the present subsidiary silver coinage OF The un,Z
! states weigh pound; $l00 weigh five and n hst !
pounds, aud for every thousand dollars that man 10
paid in SILVER wheelburrow would become necessara
| II he proposed to remove IT, The wbeelbarrow ~
fact Will become the essential and possibly Tho
fashionable poriemonnae ior all who propose to
In any considerable moneyed transactions n
OF the fathers Is 10 be made by law prucina cs
cuIating medium. II business was extensive anS
became desirable TO pay ut once $500 900 iu Tho dn
OF lne fahcrs) then the wheelbarrow woud ba'as
be discarded aud the railroad car called inio W
tIon.F 'N'''
RELATION or sAnonMn , LAWS AND NATIONAL YEcKssr.
TIES TO THE SILVER pRoBLgy
While silver, tnorefore, is not an inconven,on, ,.
| in countries oi low prices and miled Internal eY
changes, and however II may once have iaynr,bir
answered to conditions In the United States onr mro:
ent condition OF anars-our high nom,n nj .oP @ Pres.
prices, and the necessity that exists for The
OF comparatively large Of money unoo .y,ms ,na s
son--woud obviously seem to preclude the possb,I,,v
OF us use ny ouik OF even the retail business Of
made tho excFsve STANDARD Tor money vsue. IN ,no
United say no Jaw could enforce It's use for general
circulaonL euostiIuies OF paper money would bs rsi