The New York herald., 1877-03-03
THE SILVER COMMISSION
A Summary Of the Conclu-
sions Arrived At.
UNRESTRICTED COINAGE OF GOLD AND SILVER
The Relation of Europe to the Bi-MetaI-
ic Standard.

WASHINGTON, March 2, 1871
Tho following are the conclusions of the report of
the Silver Commission which presented to Con-
gress to-day signed by Senators jones' OF Nevada and
Bogy; Representatives Willard and Bland, and M
William s. Grocsbcck.
Upon the facts and considerations hcreinbeforc set
FORTH and after carefully weighing the views presented
to them orally and In writing By various persons,
commission submit the following answers TO the ques.
tions referred TO them by Congress-
FrstThe hrst question relates to the causes OF the
change the relative value Of gold and silver
and the effect OF tina. change upon the trade CON-
mercc, finance and the productive interests Of tho
country.
This commission concur In the following opinion Of
the British Silver Commission Of 1s7e:-'That the re-
increase in the production OF silver is not Of
the principal causes OF decline In its relative value
Notwithstanding tho late rso in the production OF sill
yer compared with gold is proportion 10 gold Is
still considerably below whnt II was In 1S48 to say
nothing Of the period when the proportion threo
to one, and tho conclusion seems justified that
review OF relations Of the metals In times past
shows that the fall In the price Of silver Is due to
auy excessive production compared with gold" II
Is not now seriously maintained anywhere that
any recent fact in the production of silver
among OeCt1ue.
Changes in the purchasing power OF the precious
metals must always and worry speedily affect the guam
tity their producton but changes In the quantity
Of their production affect their value as money SO
closely and insensbly that thoy may he said not to
affect IL at all for any purposes ordinarily deemed TO
be practical, mankind chiefly concern themselves
with tho interests and affairs OF their generation
This difference arises from the insgnncance OF the
annual production OF the precious metals In compari-
son with the muated stock held the world and
this difference exists in respect to either Of the metals
separately well In respect to tho metals
bned The Of the recent change In the relation
of gold and silver mainly tho demonetization Of
silver by Germany, the United statos and other
tries, and tho closing of mints against silver. which
resulted from these demonezations
AsIArIC DEMAND.
These principal causes were aided by a contempo-
rancous dimnution Of tho Asiatic demand for silver
by cxnggcrations Of the actual pros
pcctive yield OF the Nevada silver mncs the effect
OF all these causes principal and accessory reached it's
eliminating point In tho panic Of July, 1915 In the
London silver market many Of those
TALLY temporary The Asiatic demand for silver has
already recovered its accustomed force and tho delu
sions in respect to tho Nevada mines longer exist
In the opinion OF tho commission II tho United States
restore the double standard the progress of demonetiz
ing silver will DO decisively checked The effects of
the decentralization SO far accomplished and OF the
sutng disturbance Of the relative value OF gold and
silver upon trado, commerce, finance and productive
interests in this country and throughout tho CONNER
clal world have hecn sgnay DISASTROUS and especially
to the countries which have recently zed
silver, or IN which tho gold standard was already
established.
UNIVERSAL FALL oP PRICES
In all commercial countriSS the same phenomena
simultaneously presented. of FALLING prices OF CON-
modties and real estate diminishing public revenues
rapidly multiplying bankruptcies. These facts, exist
Ing everywhere, mus! arisc from some operating
everywhere, and no such cause Is or can be pointed
out except the progress made In contracting the
standard of values from COLA and SILVER to gold alone
This distress dates with the law Of the United States Of
February II 1873, and the law OF Germany OF July,
1873 giving practical effect to previous decree OF that
Empire OF December 4 ISL for tho establishment OF
nature OF the mischief seems complete; what
the world has Witnessed immediately following
u concerted movement TO dcmonetIzo silver Is pre-
cisely that fall In prces ruin OF productive interests
and IN the absorbing power OF moncycd capt.
tai which could not fail to attend sudden narrowing
OF the OF values all dcbts, public aud pri-
vate in Europe and America have boon contracted
when prices were regulated by the general existence
about equal proportions IN tho worlds stock. To an
initiate the monetary function Of ono must greatly
increase the purchasing power OF the other and greatly
reduce prices Silver TO the amount Of OOO OOO in
coins the accumulation OF fifty centuries, worked
into the web woof Of the worlds commerce that IL
cannot be discarded without commercial political
and social catastrophy. Tho evil Is enormously
aggravated by selecting gold as the metal to DO
retained, and silver as the metal to bo given up Tho
supply OF gold IL diminishing, beng now but little
moro than half what it was in 1852, and IS always
ltu and irregular from the manner OF Its production
that metal Is SO ilsuited to be sole measure OF
values Placer washings require little capital,
and are soon exhausted The mining OF silver, ou the
other hand, as 1t can neither be commenced without
capital abandoned without tho loss of heavy In
vcstmcn,s, Is comparatively steady. II is this pro-
duction OF silver which IL the moderator OF the
fluctuations OF gold and which during the sudden and
enormous additional supplies OF gold since 1s4S has
saved the commercial world from ruinous disaster.
The California and Australian paccrs would have In
cted practical conscation upon the creditor classes
II the silver which many OF them seek to discard
THE RELATION OF ooLo AND SILVER
Second-rhe second question covers the two points
OF the restoration OF the double standard in this
country. and OF the best legal relation bctwocn gold
and silver.
unrestricted coinage of both metals OF tho double
standard but unable 10 agree upon the best legal
relation Of tho two metals. Tho views of individual
members OF the commission are horeunto appended,
CONTINUING LEGAL TENDER NOTES
Third.-The third question relates to the policy Of
legal tender notes currently with tho
taic standards and tho ELECTS thereof upon the labor
industries aud wealth OF the country The commits.
sion do not suppose that II Is possible to MAINTAIN
paper actual concurrent circulation with com unless
the paper Is made equal III market value to coin by
actual converlibilty into IL, aud that the answer TO
this question may be embraced In the the
fourth and last question, which relates TO the rcsump
tion OF specie pay mens.
SPECIE RESUMPTION
Fourth. Tho fourth question covers the best means
for providing for facilitating the resumption OF specie
payments. The opinions OF the witnesses examined
upon This point and tho views upon 1t which are
tanned IN written communications addressed to tho
commission arc various and contradictory. Tho cx-
pcricnce OF other countries furnishes little aid in
reaching conclusions which can command confidence
The general TACT regard to paper money d.
rccty by governments and having forced currency
is that II has never been redeemed IN coin In many
cases II has disappeared by progressive de-
probation and final Reputation, MS in
the early history OF own National
independence In the two empires OF the present DAY
covering the greatest extent OF territorial area Russia
and Brazil such paper money has existed In tho nrst
Tor century and ia the second Tor about half that
time. In Russia there have been excessive issues aud
occasional partial rcpuoations, or redcmpti0ns at
percentage. In Brazil the paper seems 10 have been
maintained at close ana steady approx the
value OF coin. The only conspicuous example OF a
government resumption is that OF England IN
ISL The suspension OF payments in that
case not In form that OF inc government
but, Ia substance, was so IRON the intimacy OF the