Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-01-10
The Silver Question.

VIEWS or +. s. WINSTON, PRESIDENT OF THE
New YORK MUTUAL LEE INSURANCE Com
PANY.
To the Members Of tho Committee on Finance -
Gentlemen :-lu accordance with official dut, ,
ak your attention to the pending action of Com
gress, whereby it is proposed to make silver coin a
legal tender for the payment Of all debts and also
FIXING upon an al hitiaiy basis for its legal value
cons. lcrady beyond its rel or commercial value.
This company hold securities amounting to IS
million dollars, which at the present value of legal
tender notes are worth within 3 per cant. Of that
sum in god. On the contemplated resumption Of
specie payment. fixed by law at year hence, they
would be worth par in gold. At that period, $50
its assets should be about 80 million dollars at a
gold value. Should the present bill become law
and lhe,public be obliged to receive coin contain
ing buy Az IL grains of silver for do lar, it
would reduce the value OF our securities, now
worth 81 per cent and in gold, to 90 per cent
striking off at blow about $4,000 600 from our
property, and when resumption takes place about
SI2OO,OOO provided the present ice of silver is
maintained. As silver among most commercial
nations is a meTchantsble commodity and not a
coin to any considerable extent, ana its value, like
such commodities, depend upon supply, demand
the general laws of trade, lis fluctuations will un-
doubleday he as In the past, frequent and VARYING
from TO . per cent. from gold vslue. Ii is not
violent suppJsion, ia view Of the all eady enor.
nous snnnai product from our own mines and
those Of other countries that it may from time to
time reach the low relative value last me ntioned
Should tina. be the case, and the company be OBJ
ged to take silver for its bonds mortgages and
stocks It woull reduce its assets to the extent of
20 million dollars and more.
As the strength of q cham is its weakest link so
the value Of dual currency of gold and silver is
practically that of the least valuable medium
The public pay their debts with that which i, OF
the least value. This company is not owned by
rich stockholders or "bloated bondholders" Ii
has no capital stock II Issues no bonds and those
TO be affected by the proposed legislation are per-
sons scattered over the whole country, who hold
policies aggregaing 300 million dollars, ia sum,
| OF not over $4,000 each, payable at the death of
the insured. The millions of which it will be
stripped, If the legal tender bill passed in the
present shape, will be mostly taken from the pit
tanees of future widows and orphans who will
hold It's policies when they mature.
| While currency of shifting value is injurious
and annoying in all well Conducted business enter
pses II Is far more so in ours the basis and prin-
| clpies Of which are fixed beyond our control as
some osour contract, may remain in force for fifty
years aud more. Under the pressure Of thi. an
| pretended calamity, the effect of which upon our
present assets 1t may not be possible TO remedy if
| becomes our duty to arrange our methods and
| forms OF business for the future ia such manner
to free us as far practicable from the vexation.
If not disastrous effects of hucluating currency
should 1t be forced upon us. As TO farther loans
and the renewal of such as Lave alre adv matured
It Is suggested that this may be done lawfully By
expressing IN the contract or instrument of in.
deDtedness executed to the company, whether bond
and mortgage or other agreement, the kind of des-
eruption OF currency IN which it is to be paid We
could not properly make them payable IN gold
now, or until general resumption takes place,
unless we make our loans IN gold; but as the pre-
MUM paid for gold would be sunk at resumption.
1t would to that extent reduce the rate oil interest
received, and therefore it would not be adv isable
to pay out currency and require gold, would not
lie admissible under our rules, or be IN accordance
with the practice Vi equity, independent of any
possible question rs TO Its legality. As we loan
United States bank notes Or greenbacks it i, sub
mlIted that the covenants for the payment of nter
est aud principal TO the company might be in
gteenbacks, II Ibis should be deemed by YOU safe
and e1pedeni, accompanied by stipulation that
the god yalne Of the same shall be equal at The
ume OF payment to what 1t was at tue time the
transaction was made. A law was passed at the
session OF the legislature Of this State 10 1875 re-
quirlng that all state taxes should be paid IN gold
after the lst OF January, 1879. 1t has other feat
ures which should be examined But even if the
law IS of character to control the kind of
money to be used in the paymeAt of debts in thi,
state, ii might only be partial remedy inasmuch
as a large portion Of our revenue, especially from
premiums, Is derived from other States
ms SUBJECT, Of such magnitude and i'm portance
10 It's relations to the business OF this company as
wen as TO Tue public interests is respectfully com
mtHued 10 your early and eAIpest attention.