The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-11-28
An Exh austive Discussion Of the Sid
yer Question by Ex-Secrctary Cox.

YER Question by Ex-Secrctary Cox.
from an interview reported in the Cincinnati
Commercial
Reportcr: You were in favor OF the re-
storation of the silver dollar to the coinage
OF the country and its office as lawful money,
in aid OF resumption. were you not!
General Cox: Yes; from the beginning l
have advocated the duty OF resumption in
the coinage OF the country as it was at the
time OF the suspension. [ have had no
other opinion, and have supported no other,
since the suspension OF specle-payments In
| 1862.
Reporter: Is it your Judgment that by
showing the silver dollar fair play it would
he)p us to the establishment OF honest money
as currency?
| General Cox: l believe that resumption
in the old coinage is the only fair thing to
do. and therefore the only wise or polite
one. To do less would be to impose upon the
public creditor; to do more would be to i'm
nose upon the nation by increasing the bur-
| den OF its debt. The people may be trusted to
stand firmly by this doctrine as soon as 1t IS
| fully understood. The laws under which
the Government bonds have been issued
were all framed to carry out the obligation
| in this manner.
Renorter: Do you regard the action OF
the New York Clearinghouse in respect 10
lawful silver money as Well-timed and jul
dicious? :,
General Cox No. ] was sorry to see it.
II is an attempt on the part OF an assocla-
ton Of bankers to prevent the law OF the
land from taking effect in good faith ac-
cordin~ 10 its tenor. They can't carry out
their purpose, and will only have excited
hostility to the interests they represent.
1t is false.step which in common prudence
should be retraced Immediately, and it was
as unnecessary as it was unWlsc. On their
hypothesis that the slyer-coinage would
not continue as valuable as the gold in the
market, both being legal tender, 1t is ridic-
ulouS, from business point OF view,
to surpose that the clearinghouse can
make the more valuable commonly cur
rent and put the less valuable in the cate
CORY OF special deposits. To do so would
be to reverse the fundamental laws OF trade,
and is in papable contradiction to the theo-
~ of the circulation OF two metals which
the single-standard men have been them
selves arguing. An isolated community
like California may for a little while con-
tinue custom Of dealing upon a different
standard from the legal ten der OF the coun-
try, but I can hardly think the bankers OF
New York weak enough to suppose they
can make the whole country do it. They
arc not SO weak, and thercfore.must intend
to force speedy change in the legai.tendcr
law as to silver; and yet to try this in such
manner is politically as weak as the other
would be from business point OF view.
Reporter: Permit me to inquire your
opinion OF the assumption by the eastern
press that the doctrine OF the single stand
ard comprehends all that is honest aud
scientific in finance?
General Cox: AS | profess to be 4 BIZ
metallist from conviction, and, after fair
effort to comprehend the subject, / OF course
cannot admit any such assumption. On the
other hand. Ihaye as firm and clear conVlc-
ton as have on any other question in politI-
cal economy which have studied, that the
oy rwhelming weight OF argument, both
from theory and from practical experience, Is
in favor OF using both silver and gold for the
coinage. Asto the question OF honesty, have
already given you my opinion that as be-
tween the nation and its creditors the only
thing honest for both parties is to pay III
accordance with the coinage standard I'M
der which the contract was made. 1t is
little curious that those who insist that hon
esty demands that the gold standard should
| be adopted cannot be made to see that 1t is
oppressive 10 the people and an act OF tyran-
| nv for the governments of Europe to COM
| bne to change the coinage so as to add
| immensely to the burden of the public
debts and all other long-running obli-
cations, like mortgages upon lands,
railways, &c. France, for instance, has,
since 1903, had a statute which, after
fixing the relative weight OF silver and
gold coins, explicitly declares that II
changes in the relative value OF the metals
shall make change in the coinage neces-
sary it shall be the weight OF the gold and
not Of the silver coins that shall be altered.
For seyenty.fre years this has been the law
under which the contracts, public and pri-
vate, of that great nation have been made.
| I totally fail to see where the justice to the
people Of France is found, il their repre-
sentatives in the Government yield to the
influence OF Germany and follow the exam
pie OF the latter in demonetlZlng silver, ana
thus adding probably more than twenty
five per cent. to the value OF the unit III
which public and private obligations are to
he met. 1t undoubtedly is generous to one
class in the community, but tits nockery
10 call it Just. The same is true, less palpa.
bly, perhaps, but Just as really, with all
other nations that make the change. lyen-
| ture to say the arguments in favor OF the
gold unit would have sunk into sudden 81
lence il the simple proviso had, been added
that contracts. made before the change IN
| the currency should be settled in either
| form OF coinage as it then existed, or in an
equivalent weight Of bullion delivered at
| the mint. I believe such proyiso would
| be a sufficient eIperir2entur1a cr,lSlS as to
that part Of the subject now. One OF the
| worst consequences OF q suspension OF spe-
cie-payments is the Generalization almost
sure to follow the discovery that under
forms. OF law q debt may be paid in, a
cheaper way than the contract provided. 1t
| is this that leads to 60 fiat-money'' schemes
and other similar absurdities, and the only
Eway to teach right ideas is to expose equally
| the fallacy OF cheating the creditor on the
one hand by irredeemable paper currency,
and OF cheating the nation, on the other
hand, by demonstrating half the coinage Of
the world, and SO enhancing proportions
lately the. price OF the remainder, in which
the nation must pay. w hoover takes this
ground gets more or less abused from both
extremes, but it is the only honest and right
ground, and the American people would do
well in respect to the standard coinage to
make rallying cry Of that famous one OF
their English ancestors-.tWe willnot have
the laws changed" /.
| When the whole world had the use Of
both silver and gold the unprecedented DIS
co9eries Of silver and gold In Californiaand
Australia, which quadrup pied the amount OF
Egold in use, made hardly ripplein the even
4 current OF the relative. values OF the two
metals, whilst, since 1874 the demonetiza.
ltion schemes OF. European governments
have enhanced the relntiYev value OF gold bull