The Portland daily press., 1878-01-09
The Silver Question.
Views OF f. y. Winston, President of the
New York Mutual Life Insurance Com.
pany.

To the Members Of the Committee on F9nances:-
Gentlemen: In accordance with official duty,
L ask yonr attention to the pending action of
Congress, whereby it is proposed to make silver
coin legal tender for the payment of all debts,
and also fixing upon an arbitrary basis for its
legal value considerably beyoned its. real or
commercial value.
This company holds securities amounting to
s. million dollars, which at the present value
| of legal-tender notes are worth within per
| cent. of that sum in gold. On the contemplated
| resumption of specie payments fixed by law at
| year hence, they would be worth par in gold.
at that period, (1879) its assets should be about
| 80 million dollars at gold value. Should the
present bill become law, and the public be
| obliged to receive a coin containing but 4121
grains of silver for dollar. it would reduce the
| value of our securities, now worth 81 per cent.
and over in gold, to 92 per cent, striking of at
| blow about S4,200000 from our property, and
when resumption takes place about 81 100000
provided the present price of silver Is maintained
| AS silver among most commercial nations is a
merchantable commodity aud not coin to any
| considerable extent and as its value, like such
| commodities, depeads upon supply, demand
and the general laws Of trade, its fluctuations
will undoubtedly be, as in the past, frequens
and varying from to 25 per cent. from gold
value 1t is not violent suppositiou, in view
| of the already enormous annual product from
our own mines and those of other countries,
| that it may from time to time reach the low
| relative value last mentioned. Should that be-
| the case, and the company be obliged to take
| silver for its bonds mortgages aud stocks, it
would reduce It's assets to the extent of 20 mill
| lion dollars aud more
As the strength of chain is its weakest
link, so the value of dual currency of gold and
| silver is practically that of the least valuable
| medium. The public will pay their debts with
| that which is of the least value This company
is not owned BY rich stockholders" or ''bloat-
| ed bondholders." 1t has no capital stock; it
issues no bonds; and those to be affected by the
| proposed legislation are persons scattered over
the whole country, who hold policies sggregat-
ing 800 million dollars, IN sums on an average
OF not over $4,000 each, payable at the death Of
| the insured. The millions of which il will bs
stripped, if the legal tender bill passed in the
present shape, will bs mostly taken from the
pittanoes OF future widows and orphans who
| will hold its policies when they mature.
While currency of shifting value is iniur-
| ous and annoying in all well con ducted busiuss
enterprises, it is far more 80 in ours, the basis
and principles OF which are fixed beyond our
control, as some of onr contracts may remain in
| force for fifty years and more. Under the
pressure OF this apprehended calamity, the ef-
| feet of which upon our present assets it may
not be possible to remedy, it becomes our duty
to arrange our methods and forms Of business
for the future in such manner as to free us as
far as practicable from the vexations if not
disastrous effects of a huctuatng currency,
should it be forced upon US, AS to farther loans
aud the renewal of such as have already matur-
ed it is suggested that this may be done law
fnly by expressing in the cnntract or instru-
ment of indebtedness executed to the com paug--
whether bond and mortgage or other agree-
ment, the kind or description of currency in
which it is to be paid. We could not properly
make them payable ia gold now, or until gen-
| eral resumption takes place, unless we make
our loans in gold; but as the premium paid for
gold would be sank at resumption, it would to
that extent reduce the rate OF interest received
and therefore it would not be advisable to pay out
currency and require gold. would not be admis-
slble under our rules, or be in accordance with
the practicepf equity, independent Of any pos.
sbe question as to its legality As we loan
United States bank notes or greenbaeks it is
submitted that the covenants for the payment
| of interest and principal to the company might
be in greenbacks, if this should be deemed by
| you safe and expedient, accompanied By a stip-
| ulation that the gold value of the same shall be
equal at the time of payment to what il was at
the time the transaction was made. A law was
| passed at the session of the Legislature Of this
| state in 1875 requiring that all state taxes
should be paid in gold after the LIST of January,
| 1879. 1t has other features which should be
| examined But even il the law is of a charac-
ter to control the kind of money to be used IN
the payment of debts ia this state, it might
| only be partial remedy, inasmueh as a large
| portion of our revenue, especially fFopa premi-
ums, is derived from other states,
| This subject of such macsftUde and impor-
tance in its relations to the business of this
| pany, as we'll as 70 the public interests, is re-
spectfully oormended to your early aud earnest
| attention