National Republican., 1877-11-16
Coin and Bullion.

II u
ing intrinsic value equaling or nearly equal
ing it's face) is the sort and the only kind
of money which the solvent government
should provide as currency for its people
by which to effect the exchanges of the
fruits of its labor, then it must be admitted
that the cheapest and most con-
venient shapes in which that money
can be handled are those shapes in
which it should be coined aud util-
lied The precious metals have been
found the most available material for
money. Coins nnd bullion have been found
by experience to he the most favorable
shapes and devices for handling when 1t is
found necessary to handle them; but il
has also been found that the deposit of
bullion bars in the Mint and the Treasury
and the issue by the Government OF coin
notes and coin or bullion crificates for cir
culation and transmission is much more
economical method Of transacting business
than the actual handling OF the precious
metals Grain il bought and sold OH ware
house receipts, and why should not bullion
and coin be passed from hand to hand on
Government certificates when it is needed
in the liquidation of debts or settlement of
balances? There are several cogent rea-
sons for the adoption of this policy. First,
it will save all loss by abrasion and
sweating. Second, the gains of the Govern
ment by wear aad tear, burning, and de-
struction by other means of paper which
never comes back for redemption, IN much
more than enough TO pay the tirst cost of
the notes and certificates and the issue and
renewal and reissue of the same This lat
ter gain is variOusly estimated, according to
the denominations of the bills issued, from,
five to ten per centum during the
average life of note. The Govern
ment, therefore, If wise, shoald choose
the most economical method of supplying
currency. Ii II puts out coin, II must run
the gauntlet of the sweat and natural
abrasion beyond the extent of the cost o
the certificates. If it puts out co,n-notes
instead, storing the coin and bullion away
In the vaults OF the mints and the Treas
ury, where 1t can always be had 10
the redemption of the coin-notes when de
nandcd, then the Governm' mt not only save
the losses by sweating and abrasion
but gains the Losses of the holders, who ma,
uuluckily lose or destroy or by accident sui
fer the destruction OF the notes. 40 that they
cannot be presented for redemption.
Our present circulation would involve j
one-half were silver and the other half gold
over ten thousand tons of silver coin ant
i'll. al.
tons of gold coin and bullion to he 40 storct
in the Government vaults
Ii it has been or should be detcrminet
that we shall have the old double standnr,
of the measurement Of the value of labor
will it not be well for Congress to authoriz
the issue Of coin n-notes for all the coin an'
bullion the Treasury or mints may receiy
for assay or coinage, so that we may reap al
the conveniences and economies that woul,
arise from such an arrangement? Again,
the double standard should be thus restored
would not the gradual consumption q
10000 tons of silver by the Government fo
currency purposes send the silver market t
par with gold directly the polio
was decided upon and promulgated as
permanency? And, once more, is it cxactl
fair In our single-standard friends, who ar
engaged in bearing the silver market jus
now for legislative effect, to take advantag
of those low quotations Of silver, which ar
the direct result of the decentralization Q
silver in Germany and the partial demoncI
izati0n Of it in the United StatcsY II on
market were Just now glutted with cottol
would that be any argument against il
utility for the manufacture Of muslins
And, more especially, would such an a
gument be received as valid if II wei
known that the glut was occasioned by
preconcerted movement on the part of il
terested parties who wished to force cor
sumers who wanted cotton to take line
instead? 1t is folly to assert that the pri,
Of silver would not take its old relati,
stand TO gold in the market ifit were restore
I, its old position as II circulating nediur
II has simply been cheapened at the rxpen'
of the labor of the country by reducir
the demand for 1t as n circulating mcdiui
The increased production of the preciol
metals during the last twenty five years h
been considerable but careful calculate
shows that such increase has only kept pa
with the increase of labor and its deman,
for the means Of exchange added to the Il
creased demand for manufacturing purpos
incident TO the enhanced wealth of the con
mercial world.
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