The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1878-03-15
Tie Effect OF the Silver Act.

Immediately after the passage of the Silver
Bill, some of its more strenuous opponents
were disposed to take gloomy view Of the
financial situation, but from present appear
ances a reaction is setting in and n more
cheerful feeling now prevails in regard to the
effects of the act.
The bondholders, who were expected to
take alarm and sell their bonds at sacrifice,
have found out that their interests are in no
danger of being affected adversely. and they
have concluded to hold on to their invest
ments. Instead of the premium on gold adj
vancing, as was predicted, it has steadily de-
creased until it is now but fraction of one per
cent. Indeed there is every reuson to believe
that it will soon be restored to circulation
along with the new issue of silver. Even
Secretary Sherman has taken back all the
bitter things he said, and promises to carry
out the silver act according to its spirit and
intention. He has been understood to say
that the act can be made helpful toward re.
sumption. The general public will prefer
greenbacks to silver dollars, and the Treasury
having supplied the demand for silver to pay
duties with, may safely offer to redeem the
greenbacks in silver, for which there will be
no run on its store. Therefore, with silver on
par with gold. and greenbacks redeemable
in silver, the long-expected financial mil.
lenium, when the greenback and gold dollar
will be equal in this country, will have come.
So far as the effect of the act upon our
monetary relations with foreign countries is
concerned, it must be remembered that the
balance of trade is largely in our favor. We
are not compelled to send gold to countries
where silver has been demonetized; but on
the contrary foreign countries are sending
gold to us in payment of their Indebtedness.
Therefore, if the bondholders are satisfied
10 receive their interest in silver, and the act
will hasten rather than retard resumption
of specie payments, we can not see that any
harm has been done.
Practically gold has not been circulating
medium in this country since the beginning
of the war. 1t has merely afforded standard
of value, and if the silver piece called dollar
is really worth only ninety cents, as compared
with gold dollar, the fact furnishes no valid
argument against the reconciliation of sill
yer, If it does actually buy only ninety
cents worth of provisions, it will require only
ninety cents worth of labor to earn it.
Silver is the poor mans money, and its de-
monetization was not in the interests of the
farmer or laboring man. The act depriving
it of its place as legal coin of the country
was intended to benefit the Spectators OF
Wall street, who received interest on their
bonds in gold, which they afterwards sold
back to the government. During all these
years the rich have grown richer and the
poor poorer. 1t might, perhaps, be unfair to
say that this is entirely owing to the demone-
tzation of silver. Over-production, abroad
and at home, may have added to the general
distress. But it is fact that with Europe
buying largely of our products, and every
element of prosperity with us, trade has Ian
guished. Our merchants have failed, our
manufactures are closed, the prices of our
farm products have fallen below profitable
figure-not because the crops have been so
large, but because those accustomed to n
whole loaf must fain, for want of work, con-
tent themselves with half n loaf Distressing
as was the present, the future held out no
more pleasing prospect Of better times.
There are now, we earnestly believe, more
hopeful signs of returning prosperity. A
fixed financial policy for the country, even if
not the best that could have been devised,
will tend to restore confidence. and business
will easily and rapidly adjust itself to the new
conditions. Under the stimulus of hard and
real money in plenty, commercial and manu-
featuring enterprises will be pushed forward,
new avenues of industry will be opened up,
and employment given to thousands of will.
ing hands, now whitening in enforced idle
ness.