National Republican., 1877-09-14
MR.. GR0ESBECR ON THE SILVER
DEESTLON

QUESTION.
The third annual meeting of the Amci-
can Bankers Association, which " now IN
session In the city of New York, has had the
financial condition of the nation under con-
sideration. Owing TO the great interest
which the subject now possesses the opin-
ions of the eminent bankers who compose
that assembly are worthy Of the most scri-
Gus consideration. They, above any other
class OF citizens, should be familiar with
this topic, since the very character Of their
business requires them 20 make special
study of IT, One Of the members Of the
Convention IL Hon. W s. GROEspECK, Of
Cincinnati, who, while he is eminent as n
lawyer and n statesman, il likewise n praC-
tical banker of large experience. Mt
GRoEsPECR yesterday delivered an address
before the association which IL both logical
and learned. He treats the subject in such
. scholarly and exhaustive manner that his
address il worthy OF high place among
the works which are consulted as authori-
tes upon this important subject
Mr.. GEOEsBECK 'sspeecb, OF rather treatise,
= the most satisfactory Argument IN favor
Of the reconciliation Of silver with which
We have ever met. He treats the topic un-
der two general heads l. Is II safe 10 use
diver H. well rs gold for unlimited legal
tender and is IL better TO use both than
either one? =. Is there anything in the
present financial condition Of the United
Btates winch should bc taken into consid-
grafton in deciding this question? Mr..
GRoEsRECH very wisely clears the ground Tor
che consideration OF these propositions by
demonstrating the folly Of attempting 10
maintain an irredecmable currency ~ legal
tender money. lie shows that our green
backs are In no wise different from he notes
or Letters oi credit issued by so many otheI
nations III times of peril. which, having
none of the sieInruts of steady aud un-
ehangeabe values, have always heen un-
certain and tluC'uatng, and too often
worthless IN the end. Com alone remains
unimpaircd 10 value, Notwithstanding com
merCial reyeIses OF cSeu national ruin.
MT. tKOESBECk makes u strong point
against our present legal tenders Ivy show
Ing upon what an unsatisfactory basis their
legality rests, Five Judges concuried in
tbe first decision of the Supreme Court
which declared them Illegal and three dis
sented, five Judges conCurrcd III the second
decision reversing the first and four dis
ssnted, Thus 10y counting the opinions in
the two eases il appears that there were
nine against and eight IN favor Of the con-
stitutionalIty of the legal tender notes.
Such a decision cannot finally and salts
fsctorily settle this question; hence the folly
of advocating the adoption Of such an uu-
certain currency as our legal tender money
Having swept ont OF the way the theory OF
making paper legal tender Mr. GRuEs-
BECK comes 10 the consideration of the
question us 10 the whether It ~ sais 10 IIse
silver IL well as gold for au unlimited legal
tender. In determining this question he
asks us first 10 consult our own home eA-
Il. l. A 4 4.
beginning Of our Government down TO 1874
both gold and silver were full legal tender
for all debts, and that the result OF our ex-
perience was entirely satisfactory. During
all that period gold and silver kept about
evenly together. During all that period
they served us for all our transactions
abroad quite Hs well as We would have been
served had we used but one. II cannot he
claimed that anybody would have pros.
pered more If we had used gold alone or
silver alone.
MI. GRoEsBECR brings out the point very
strongly that silver was demOnetlZed at u
time when not creditor or debtor ut
tered a complaint OF sought change No
newspaper in the Union advocated the pol
Icy. No petitions were sent to Congress
from Boards Of Trade or Chambers of Com
merce asking for such measure This we
consider one OF the strongest points which
the silver men make. Whatever the alb
stact merits of the question may lie there
h no Justification for the action of Congress
in depriying the people of this money with
out their consent.
II is now sought TO perpetuate the policy
for three reasons one, the excessive pro-
duction of silver, another the demonetiza.
zion Of silver in Europe, and the third de
creased demand for II in Asia, Mr.. GROEs
BECK goes into an elaborate examination o
the alleged excessive production OF silver
He reproduces a table which was iurnishe,
" commission appointed by the British
Parliament to examine this subject, by Sil
HECTOR HAY, from which II appears tina
during the period from 1852 to 1875 th,
total production of gold was 81, 800. 1915, ,0O'
and OF silver 81 1,lS7 ,00O.OOO Thus it vii
be seen that the production Of gold has heeI
more than double that OF silver. Thes
statistics, which are the most reliable
that can he had on the subject, are Il salts
factory answer to talk about an cXcessiy,
production of silver without saying any
thing about the large demand which there
IL tOr silver in the arts, and other consider
ations which greatly strengthen this view
Of the case.
Mr.. GRorSBECK next answers the oblec
cause 1t has been demonetzed in certail
countries of Europe. He shows that tn
action of Germany cannot materially aleC
the practical operation OF our policy on
way or the other for the nations using sil
yer are so far superior numerically that it
demonctzation by one nation cannot mate
rally deprecutc its value. The population
of the nations under silver is is s76 700 OOt
of those under gold, $50, 600, and of th
nations under gold and silver 9O,5OO0 0Ot
In this estimate the population of the Gel
man Empire Al 900 900 is counted in til
list of those under gold. These figure
show how lhr gold is as yet from becomin
the sole standard money of the world.
Mr. GUoEsnECK answers the ohiectiO
that silver will depreciate in consequence
Of decreased demand for il in Asia b
statistics which show there is no ground fc
the assumption. The question being one I
fact, the figures in the official reports mus
be taken rs conclusive, in the absence
contradictory testimony. Admitting ii
facts to he as they are asserted to be by VI
L.. had al,