Daily Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1876-1884, 1878-01-27
An Abundant Currency WithOu
Paper Money Innssion.

An Abumdans Currency without
Paper Money HBnstion.
The passage Of Stanley Mat
thews's resolution in the Senate of
the United States, by the remark
able vote of 43 to %, is memorable
from every standpoint. That reso-
luton declares, in substance, that
both the principal and interest of
the national debt may rightfully be
paid in silver coin at the option of
the Government. AS the Infamous
law which declared that it was
payable in gold coin, only, ema
mated from another citizen of Ohio
Garfield is right that an
Ohioan should have taken prom
inent part in attempting to correct
the infamy.
We propose to waive all discus
sion OF the question as to wheth er
-s~r not legislation recognizing the
Ing s-tandard will succeed in
gettiHk f.Self on the national statute
book in the shape of law.
We also waive any discussion
as to whether Congressional legls-
lation would or would not restore
silver to its old and rightful status.
Legislation in favor of silver may
rally result in depreciating its
sslling and circulating value. The
caprices of finance are inscrutable,
and this, though a remote and not
likely contingency, is not an i'm
possible one, by any means.
But there Is another aspect in
which the re. establishment of the
double standard, and the imminent
approach of greenbacks and ma
tionai bank notes to par, are
worthy of attention. Should the
slight chasm which separates our
paper money from gold be bridged
during the coming year, we would
witness In the United States, with
out any additional paper money
issues, a remarkable imitation Of the
currency-an imitation quite as
great as that outlined by the new
Ohio United States Senator, George
H. Pendleton, in one of his ma
turely considered speeches advo'
eating an expansion of the curren-
cy. The figures are not just now
within our reach, but we presume
that, counting greenbacks and ma.
tlonal bank notes, the paper cur
rency of the United States aggre-
gates between eight and nine hun
dred millions of dollars. Should
this currency all appreciate to par,
and should silver regain its old
status, we should be face to-face
with the following singular state OF
things: -l
For sixteen years gold and silver
in the United States have been
merchandise, not currency, with
the exception of the brief period
during which our fractional cur
rency has been replaced by silver,
and that, of course, to very
limited extent. Practical spe-
Gle resumption, which would
Immediately result from bring
Ing paper money to g par
with gold, together with the re-
monetization of silver, would d.
vest al this money of the character
efS.Sh shandise and convert it into
currency. Counting both gold
and silver minted money, there are
probably to-day in the United
States in the neighborhood of four
or five hundred millions of dollars.
This sum, besides, would be stead
lily increasing, both from the large
balance of trade with the outside
world which has been for some
years in our favor, and from the
unexampled yield of the precious
metals which is now being report
ed from our mines. Within q
year from the establishment of the
hypothetical case we have stated,
we should have practical addi-
ton to the currency of the United
States Of between seventy and
eighty per cent. Of IFS whole vol
-ume. a - s,as-.
What would be the result? First,
money would be easy and its own
ers would be obliged to seek for in.
vestment in those private and cor.
p1tate Enterprises which have
slim bered for so long period. In
addition, the refunding of our
whole national debt, at low rate
of interest, would become feasible
at very early day, thus lessening
the burdens of taxation. .
Second = Real estate and other
commodities, every representative
of value, bonds, stocks, mortgages,
etc., etc., throughout the length
and breadth of the United States,
instead of being measured by cur
rency whose limit is, at the out
side, nine hundred millions of dol
lars, would really be gagged by
medium of gold, silver
ana paper, whose volume would
La 10 "a or GE-