New-York tribune., 1878-02-05
LOSERS BY THE SILTfR ELL.

LOSERS BY THE SILTFR ELL.
The constant assertions of the advocates of
unlimited silver are that when IT Is made
legal-teuder, the loss will fall on bondholders
and capitalists. We propose to show how
three classes of people, that can hardly be
counted rs belonging to the hated ranks
of the wealthy, must losc an immense
amount OF money within one year after
the Silver Bill becomes law. No estimate is
made III these calculations OF the additional
losses which financial panic and commercial
disasters are likely to intlict; the inevitable
loss by the depreciation OF the Govern
ment bonds and the money OF the
country is alone considered. The number
of people directly concerned IN these estimates
is certainly much over a million, and may cx-
cced two millions. They are the owners of
deposits in savings banks, and of policies III
life and fire insurance companies. rs the
statements for 1877 are not yet published by
the banking and insurance departments, and
will not be for month, the estimates are
made upon the figures of the previous
year; but there is reason for believing that
similar calculations, applied to last years sta
tistics, would give. rs large if not greater re-
suits. An extreme allowance has been made
in the estimate of the proportion OF currency
bonds which the banks and companies may he
supposed to hold, since such bonds are not
subject to an equal decline with those that
are PAYABLE in gold; and for that and other
reasons the totals of losses must be far within
the facts.
Taking first the life insurance companies
those authorized tn do business in this State
mast hold considerably more than S25,OOO,OOO
of coin-bearing bonds. If these bonds are to
nav SILVER dollars instead of gold. they will be
worth at least o., per cent less, because oi
the difference i'm value Of the metals In the
coin. The consequent loss OF assets will
apply directly to reduce the amount
which tho companies can divide among
their pocy-hoders. There will be ST.
400. 900 less for dividends. In round
numbers this will increase the cash part of
the premiums to be paid by about per cent.
That is, The holders of life insurance policies
throughout the country-chiefly people of very
moderate means-will have to pay 3 cents on the
dollar more than they otherwise would, In renew
ing their insurance during the year. They must
endure this loss solely on account of tho de-
probation Of Government bonds which are
then made payable III silver. III there IL "
greater depreciation because OF the loss OF ma
lional credit, the polcy-hOdcrs will have TO
pay more cash. But q heavier loss will fall
upon those whOsc policies mature by death Or
tho limit of the contract. The ncw-Inade
widow, when size is paid her husbands life
insurance, will receive money worth certainly
9io Der cent less than gold; money that will
ONLY buy JOls cents worth to tho dollar Of
ANYTHING she needs. The loss by beng paid in
deprecated currency at the maturity of life
insurance policies may be estimated for the
year AS $3,2O0,OO0; making, with what has
been mentioned total loss to policy holders
of $5,G00,OOO.
The fire insurance companies authorized to
do business in this State have held usually
somewhat larger amount OF Government sccu-
rites a similar calculation applied to these
concerns indicates loss OH the coil-bcaring
bonds of about b2,700,0O0, many companies
being OMITTED that have no Offices
lere. This loss will chiefly fall upon
men n business, making insurance upon
goods and buildings less secure and more
costly. The sum will be as eifectually de-
stroyed as IL 10 were burned in 'argo fire.
Eventually the people who rent houses OF
room. and buy goods, will pay for this de-
siluclion nearly all of them vii pay it within
the year. Also, the insured losses by fire will
be paid in iepro ciated currency. 1t Will
bear very hardly on n business man,
after fire, and when tho amount that the
company viii piy has been adjusted" TO
much less than he had hoped for, TO find that
the payment will he made in money worth
only 9Olo cents on the dollar. Tho losses by
this process will be not less i'll a year than
So, 200, 600 Total LOSSES Of fire insurers, fully
$4,9OO,O00.
Tie savings bank depositors will be vastly
more unfortunate. Such banks, throughout
the Union, hold nearly twice as much Of Gov
ernment securities as the insurance companies
of both kinds that do business in this State.
Their loss by the depreciation of coin bonds
that arc valued as paying silver instead of
gold, will be upward OF $9,OO0OOO, which is
mole than per cent of their deposits. Banks
that have paid interest at q per cent must
reduce it to per cent if tho Silver Bill
becomes law; If they now pay per cent
interest they can then only pay a. The