The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-02-13
XIV. CONGRESS.
REGULAR SESSION
SENATE.
WASHINGTON. Feb. 6.


had been the metallic money of the world
for thousands of years. They were also the
money of the constitution. They were the
metallic money of the colonies, and after
ward of the United States, from the deciars-
ton of independence until silver was.
demonetized cy mistake, aud without the
knowledge OF the people or congress, or by
enactment of revised statutes in 1874
Both metals are suited to perform the func-
tons of money, and silver does perform that
function amcng large sIsjority of the hu-
man race. Silver. is especially suited Tor
small transactions, and may, therefore, De
properly called the Fsoney OF the people In
humble circumstances. 1t follows that the
burthen of proof rests on those who insist
that silver should be demonetizsd. 1t IS
argued that to rehabilitate the
dollar of 1925 grains would , de-
fraud the public creditor. This
can net be true, for the contract is to pay in
either gold or silver of standard value OF the
United States on July ii, 1870, when the
silver dollar of 4l2% grains was full regal
tender, with the right of unlimited coinage,
and il is simply impossible that the creditor
performing his contract, entered into by
both parties but with full knowledge OF its
terms and effect, can thereby be guilty OF
fraud or dishonor. Both houses of congress
have by overwhelming malorlnes decided
that no such fraud would be perPetrated
by paying public creditors in silver dollars
of 4l21z grains. If the remoneuzlng OF silver
will bring it to par with gold the public
creditor can not lose. 1t is said that to coin
the silver dollar of 412l5 grains, and make 1T
full legal tender, would defraud individual
creditors who have loaned money or sold
property to other individuals since silver
was demonetized-that Is, since June p,
1874. This is a great mistake. Every
creditor of the foregoing description
Is compelled by law to receive
greenbscks in payment, unless his contract
expressly provides for payment in metallic
money, and these exceptional cases are not
affected by the bill under consideration.
Now no one think doubts that if the coin
age of the dollar of 4l21z grains be restored
and it be made full legal tender its value
will be at least equal with that of greenback,
hence no possible injury to individual
creditors such as that above supposed can
occur. If, as has been asserted, the average
duration of individual duration in the
thing it is less) then it is easy
to see that the passage OF this
bill can not iDjure any considerable number
of creditors, if indeed it should injure any,
for it is certain that in the next two years
not over 100000 600 silver dollars could be
coined, and nearly all such dollars would be
absorbed by the payment of custom duties,
and would be used for nothing else. 1t Is
argued that If this bill pass silver will be a
less valuable currency than gold, and will
expeI gold from the country in accordance
with what is called Gresham's law, namely,
that the least valuable currency drives out
the more valuable, and hence several amend
ments have been offered to increase the num-
Der of grains in the silver dollar 50
as to make il an equivalent, as 1t Is said OF
the gold dollar. This objection to the bill
rests upon the assumption that the silver
dollar of 4121z G aims if made full legal
tender will be- of less value than the gold
Mr.
sumption was incorrect, and said If the
greenback, which mas no intrinsic value, no
circulation outside of the United States, and
is a limited legal tender, and is here
within less than , per cent. with
gold, why should not silver money
which has intrinsic value, and which
circulstes over the greater part of
the globe, if Endorsed with iull legal tender
faculty, rise to par with gold, especially if
we rate metals at 10 9S100 to 1, while most
other nations using both, give but 1512 for L.
One reason why greenbacKs have been, and
are deprecated, is the fact that they have
not been receivable in payments of customs,
duties, or of interest on the public debt, but
make the silver dollar of 4121% grains a full
legal tender, and 1T will be received
for both these purposes, and it
must closely approximate, if II
does not reach par with gold
/ believe that il will reach it. But suppose
1t does not, and suppose Gresham's law to
have its effect to what extent would gold be
expelled from the country by silver? Mani
testify only so far as silver supplied it. Three
hundred millions in gold could not be
driven out by all issue of fifty millions of
silver. The utmost effect could only be to
expel fifty millions of gold, the place OF
which would be taken by silver, and the
volume of metallic money would be the
same. But would the fifty millions of gold
be expelled? Not unless three hundred
millions was ALL the metallic money that
the country needed. IL il needs three hun
bred and fifty millions land it needs more to
safely and certainly maintain specie pay
mense, the gradual addition of fifty millions
OF silver to three hundred millions of gold
would not drive gold out. But in truth we
have not half of three hundred millions Of
gold and when we consider how slow will
be the process of coming silver dollars We
will find that We are in no immediate dan
ger of losing our gold. If the gold be ex-
PEELED it will not be so much by silver cur
rency as by our small notes. Whether the
people of the United States would ever give
up the use of small notes he would not
venture to predict, but if they would
not, they must agree that with
shall be shorn of its functions, that of a cir
culating medium. Another set of reasoners
argued that silver would go out of the cOun.
try should the dollar of 412L grains be
coined; that as silver was undervalued in
the dollar OF 4i2H grains, as compared with
its valuation in the states of the Latin
union it will leave here and flow into those
states, and so it undoubtedly would tend to
do were those states to open mints TO an
unlimited coinage OF five franc pieces, but
he thought they would not do so. Another
objection to the bill was that If it should
become a law we would be flooded
with silver; that Germany would pour a
surplus of silver on the United States, and
our mines would produce so much that we
would have more than we knew what to do
with. He had no fears from Germany. 1t
was said that she had eighty million dollars
to spare Suppose 1t were all poured into
the United States we could absorb IL all
without injury; but it would not be poured
into this country. Germany could not spare
her silver, but if she could the greater part
OF il would be much more likely 70 90 to
Asia and to Russia, Austria and Spain.
to say nothing of the Latin states. than
to come TO the United States,
who undervalue silver as compared with the
4 L a