The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1877-10-06
THE SILVER QUESTION.

THE SILVER QUESTION.
The Commission appointed by Con-
gress nearly two years ago to investigate
the whole question of the use of silver as
currency, has at last completed its re
port and it will be sent into the regular
session OF Congress. The leading finan
cial ability of both continents has been
employed upon it, and full, exhaustive,
and intelligent discussion of the whole
question is promised US. The Bankers
Magazine, for October, contains an ex-
tract from the forthcoming report, which
we subjoin. 1t clearly points out that
there can be- no resumption without sill
yer reconciliation:
That shrinking money and falling
prices are the cause of existing evils was
pointed out eight years ago by the Lon
doa Economist in its review (l869) OF the
previous financial year. 1t then said:
"Itmay bessfely affirmed that the pres
ent annual supply of thirty millions of
sterling gold is no more than sufficient 10
meet the requirements OF the expanding
commerce OF the world, and prevent that
pressure of transactions and commodities
on the precious metals which means, IN
practice, prices and acages constantly tend
in0 to1card decline. The
real danger is that the present supplies
should fall of, and among the greatest
and most salutary events that could now
occur would be the discovery OF rich gold
DEPOSITS in three or four remote and
neglected regions OF the earth.
Instead OF the discovery of new gold
fields. that which has actually happened
since 1869 has been declining produc-
ton in old ones. The annual supply OF
5OOOO,OOO, then considered barely sut-
ficIent, has dwindled to SlOl 100000,
while during the same period the demand
and necessities for money have been con-
stantly and largely increasing. This In
creasing demand crowding upon fail
ing supply was of itself great misfor-
tune; but, as If to change unavoidable
evils into deliberate ruin, several COM
mercial countries, including our own, de-
monetized silver. In its review of the
financial year 1872 published March 10,
1871 the London Economist predicted
the inevitable consequences in the follow
ing language: -,
At the end OF 1872, the (German) gold
coinage amounted TO twenty-one millions
sterling. The following paragraph from
the well informed Daily Ne,os gives the
latest facts, and properly draws attention
to their important character.
"By the present bill the German Gov
ernment is certainly paying Eng gland the
compliment of adopting its single gold
standard, but the cost of the measure 10
the London and other money markets
cannot but be great. AS the annual
money supply of gold throughout the
world is reckoned at little more than
100000, 900, and the usual demand for
miscellaneous purposes is very large, 1t
follows that, if the German Government
perseveres in its policy, the strain upon
existing stocks and currencies will be
most severe. UAless the annual pro-
duction of gold should suddenly increase
the money markets of the world are
likely to be perturbed by this bullion
scarcity"
These inevitable consequences OF the
policy of Germany, and of the United
States and other countries cooperating
with Germany, have been and now are
being realized as predicted. Many OF
those who foressw and predicted them
now deny what the whole world knows
to be true. - A more fatal mis-
conception grew out of the ignorance
which prevailed almost universally until
after the passage of the resumption act,
that silver had been demonetlZed, and
hence that law providing for specie
payments was really LG'o for gold PAY
fnents The people tCere not dt0dre that
coin then meant gold, and that coin pay
,neatS inroLUe the ShrlUeling Of all UaLUeS
TO the measure of a single metal They
i0ere in faror of reSlInlL ton, bWt not con-
fScation, and they 10eTe not G'0dre that
the resumption proposed lcaS but another
name for SpoiLatton.
This is clear and sound. To under
take to transact the business OF the
world in gold alone is insanity; and an
attempt at resumption without silver re.
monetzation, is confscstion robbery.
In the same number of the Bankers
Magazine is another article bearing upon
the same subject, which contains much
of interest. It's summing up is as fol-
lows:
First-Thst the withdrawal of consent,
or demonetization as it is called, reduces
silver from al economic force to COM
modify, leaving it only such value as it
may have as commodity for the manu-
tacturers.
Second-It denomination continues,
the depreciation of silver will be great,
and this loss of Its value must fall upon
the holders of it, which will impair 10
such extent their ability to purchase and
pay for goods, as to seriously affect the
commerce and industry of the world. S
Third-Thst the contraction OF the
medium OF exchange which must result
from demonitization will cause general
fall IN prices; then-as 1t can not be
diminished In any way except By pay
msRt-ths volume Of indebtedness will