The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-02
THE SILVER QUESTION

Mr. Samuel Smith, President OF the Liverpool Cham
Der Of Commerce, has addressed three letters to a
Liverpool journal in which he strongly supports tho
dual system cxpounded by II. cernuschL In
answer to tho question. whether bimetalic system
BIO desirable or not, Mr.. Smith argues as follows:
F1rst-lt would greatly facilitate transactions bo-
tween countries using gold and countries using a
silver standard by reducing their money, IL were 10
u common denominator. For thrcc-quartcrs OF a cen
fury the silver rupee was practically worth
part OF sovereign, the SILVER franc tho twenty fifth
part, and all other leading silver COINS some othor
liked proportion and the reason of this stability was
that France coined either gold silver an unim-
tied extent nj the ratio OF 10 l5a. The whole world
benefited BY the regulating influence OF her b.
metallic system; hence II happened that when tho
extraordinary gold discoveries Of 1880 increased
the yield or gold hveold there was no change
IN tho relative value OF The precious metals and com
merce went on all over the world undlsturbcd by tho
change. The Same happy result would flow from the
readoption OF the bimctac system; the annoyance,
Inconvenience and loss 10 merchants trading between
countries using a gold and silver standard would DO
at an end. We should longer the rupco worth
time the tenth OF sovereign, another time
the thirteenth part, and perhaps iuturc time
the twentieth part We would preserve the Incaculu-
bio tango for mankind speaking as it were ono
monetary Language instead OF babel or tongues But
this is tue least advantage. Commerce can no doubt,
overcap the barriers VI luctuatng exchanges, and
our merchants, warned by tho past can protect them
tocraby well i'll tho against fluctuations
silver they have done against luci in tho
inconvertibc currences Of America Russia aud other
countrics-busincss Will 90 On IN spite OF these Diff
cutics just us people would continue the At
anttC II steamships were abolished. but loss
fort ana more risk.
Second-A much greater advantage would be the gain
to the cause OF honesty and iar-play between
and man. Let me explain what mean. During the
seventy years this ccututy when gold and silver re-
manned practically ut the ratio OF to Is X IN i'm.
mcnsc pile Of national debts, railway bonds, private
mortgages and othcr obligations, public and private
has been reared. The greater part OF our national
debt has been contracted in that period with interest
payable IN gold. The United states debt has boon
plod up also with interest payable III gold; the debt
OF France with Interest payable either gold silver
lent this money did so on tho faith that the stand
ard on which they were paid would not DC tempered
with by violent monetary changes. In Short large
network OF borrowing and Lending has been drawn
tho entire civilized world based upon tho belief
that either metal alike valuable ra.io which
Mird--But, thirdly, another weighty consideration
Is this: the countries using silver money-that Is fully
half tho word--wii lind that tho Inconvenience
so great provided no remedy Is uppcd that they Will
be driven ultimately, one alter another 10 dcinonctizo
silver and usc gold exclusively as their standard Tho
result OF that VIII be that silver, instead OF being
WORTH US ut present. 4s 6l per ounce say about II y
to OF gold may drop TO about 2s per or some
other Inquire so low as practically 10 bcggar all nations
that have borrowed in silver and have pay in gold
and virtually conhscate the property OF ali who have
lent their money TO nations or individuals for pay
ment OF interest IN silver. No doubt II such state
OF things were TO happen some countries would hayo
TO pass into liquidation and make composition with
their creditors, and ultimately matters would settle
down everywhere after excessive suffering and
confusion into universal system OF gold
payments; but the necessary consequence would DO
that the metallic basis winch the business the
world was done would be immensely reduced II would
DO us II the mines we're shut up Tor several years In
stead Of sny 400 OO0 900 Of gold and silver
business OF exchange, there would BIO 700 600 600
100000 900 OF gold and limited amount SILVER as
small change Money values would Tall greatly; ma
tional debts like our own would press much more
heavily, and period OF suffering and contraction OF
business would ensue similar to what the United States
has experienced on coming painfully back IRON in
fiatcd paper toward specie payments
No doubt At last the process would be pshcd,
and alter century or SO the world could well
"a pnlI Hon n
have the intermediate chaos If It be avoldcd My
is that II can be avoided by nal
monetary convention between the TOUR leading CON-
mercal natons-pcrhaps between England ana France
alone, and In this convention all would DO gamers and
none losers, Tor IN the long run all The best interests
either OF men or natons are served by keeping
nviolntc.