The Portland daily press., 1877-06-12
RESUMPTION and Silver.

1t looks very much as though resumption
OF specie payments would before long become
an accomplished fact. The Secretary of the
Treasury is certainly doing better than was
anticipated. Most of the hard-money advo-
Gates cherish healthy distrust of Western
financiers, and from Mr.. Sherman they ex-
pected many words and no practical measures.
He has disappointed them, for his words have
been few, his measures prompt and practical
though scarcely far-reaching enough. He is
contracting the volume Of greenbacks, wisely
calling in the small notes first, and adding to
the surplus fund necessary to resumption by
greatly reducing the rate of interest on the
government bonds. If this course be steadily
pursued, good care taken that the greenbacks
withdrawn shall not be reissued, and suff-
cient sum in gold be provided to meet the de-
mand for redemption in 1879, speedy resump-
tion of specie payments is assured. So far as
the Secretary's plan is developed it is wise,
and unless he has some unpleasant surprises
in reserve it will meet the approval of friends
of sound currency.
But there is feeling of uneasiness in hard
money circles caused by the apprehension
that the Secretary may be swerved from his
course when Congress meets. There is a
fear that he may yield to the silver money
clamor from Illinois and Ohio. A surrender
70 the men who demand that the coin which
they alliteratively term "the dollar of the
Daddies" shall be made legal tender for all
sums would undo much if not all the good
work so far accomplished, and altogeth-
er prevent a return to a stable and world
acknowledged standard of value. Silver,
which not long ago varied in value twenty
two per cent. in six months, and which is
now far more unsteady than greenbacks,
would subject us to many of the evils from
which we are now, with fair prospects Of
success, endeavoring to escape. Of course
1t would be preferable to irredeemable money
because it has value and is not merely an ev-
idence of debt. But it certainly is scarcely
more fit tor measure Of value than an India
rubber yardstick would be for a measure of
length. Its adoption would unsettle prices,
and in the end increase rather than relieve
the burdens of debtors, for the man who
lends money or gives credit always exacts an
an additional sum sufficient to reim-
burse him for any possible loss through
shrinkage of value. Silver, by general agree
ment among nations, may be remonetized
and its fluctuations partially done away with.
Or this country may independently increase,
without detriment to our interests, the
amounts for which it shall be legal tender;
but any attempt TO make it legal tender for
unlimited amounts must result in disaster.
The situation is clearly discussed in the report
made by the minority of the silver commits
sion appointed by Congress, report which
has just been printed. The document is
signed by Prof. Ftancis Bowen and Repre-
sentative Gibson of Louisiana. The wise
conclusions which they reach are these:
First-The great changes which have taken
place during the last year in the relative value
OF the two precious metals are attributable al
most entirely TO fluctuations in the market
price of silver, since the prices of commodities
generally, reckoned in gold, have been compal
atively stable.
Second.-These fluctuations indicate con-
siderable fall in the value of silver, which has
been produced by three causes 1. By the great
productiveness of the silver mines in the Com.
stock lode, which within few years have
doubled the average annual product of that
metal for the whole world; 2. BY great dimi-
mutton within the last five years of the demand
for silver to be exported to British India; 8. By
the demonatizotion of silver. withinkthe same
period, by Germany, Denmark, Sweden and
Norway, and the limit put upon the coinage of
it by Holland, France, and the other states of
the Latin monetary union.
Third-These fluctuations prove that silver
has become entirely unfit for use as standard
European states shows that they have become
aware of this unitness, and have altered their
system of coinage and legal tender accordingly.
Fourth-The question whether the three
causes here alluded to have permanently depre-
cated the value of silver is one which does not
at present admit of a determinate answer.
Vague estimates and uncertain theories afford
no safe grounds for legislation.
Fifth-The so-,alled double standard is an
Illusion and an impossblity. The prolonged
attempts made both by France and the United
States to establish such standard have been
complete failures, causing much confusion and
Inconvenience, necessitating frequent changes
of legislation, and resulting only n the altern-
ate establishment of one or the other precious
metal as the sole standard.
Sixth-Silver is further untitled to be the
principal medium of exchange: l, through its
considerable weight and bulk in proportion to
its value, being thus inconvenient for use in
large transactions and settling International
balances; and 2, through its constant liability
to loss by abrasion and clipping, the correspond
ing loss in the case of gold being so small as to
be almost imperceptible
Seventh-The proper place for silver in
monetary system is that of subsidiary or token
currency, which is considerably overvalued by
law and made legal tender only within certain
limits. These limits being indeterminat, except
by general considerations of expediency there
is no valid objection to so far widening them as
inconsiderably to increase the amount of silver
now in circulation, paper money being with
drawn to an equivalent amount, and the silver
CONS being made legal tender for any sum not
exceeding $50.
Eighth-the proposed "policy of continuing
legal tender notes concurrently with the me-
tallic standards would be in the highest degree
inexpedient and unjust, this paper money sys-
tenn having been the chief cause of the paralysis
of trade and industry under which the country
has labored for the last three years. and Con-
gress having, as far back as 1869, solemnly
pledged the faith of the country for the resump-
tion of specie payments at the earliest practic-
able moment.
Ninth-Crcumstances at the present time
have made such resumption both practicable and
easy within very brief period the paper cur
rency having spontaneously contracted itself at
the average rate Of $3000000 month during
the last twenty-five months.
The report concludes with the following
recommendations, which are worthy of care
fnl consideration, however widely we may
differ from them:
/. That dollars be coined each containing 345.
grains of pure silver, which shall be legal ten
der for any sum not exceeding 500 and shall be
issued only in exchange for paper currency be-
low the denomination of So, and the 81 and So
otes SO received in exchange shall be immedi-
ately cancelled and destroyed. The silver dol
lars, however, shall be receivable to any amount
in payment of any duties to the government
except the duties on imports. After January
!, 1878, notes below the denomination of IS
shall not be paid out either by the treasury or
the banks, and shall not be q legal tender.
2. Gold shall in future be coined only at the
rate of % grains of pure gold to the dollar, so
that the half eagle or IS piece may be almost
the exact equivalent of G1 sterling and the
gold so coined shall be legal tender to any
amount. Provided, however, that all debts and
contracts, expressly made payable only in gold,
and outstanding on the data of tiis enactment,
shall be paid and discharged only by dollars,
each containing 1872 grains of pure gold, or by
their equivalent.
3. Out of paper currency received by the gov
ernment by the collection of its internal rev.
enue, sum not exceeding $3,OO0,OC0 each
month. shall not he raissnad hnt shall he can.