Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1878-03-26
$tauntott Spectator.
TUESDAY, MARCH 26, 1873.
The Silver Bill-its Nature and Effects.

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The Silver Bill-its Nature and Effects.
The act recently passed, for the re-
of silver, has led to great
deal of discussion in Congress and in
the newspapers. Most of this discus
sion has been in regard to the effect
which the new law would have on
the credit of the government, the price
of gold, and other questions of an alb
stract character. Very little has been
spoken or written in regard to its prob
able operation on the practical every
day business of the people. We propose
now to effer few suggestions to our
readers on this aspect of the subject.
We have always been advocates OF
the reconciliation of silver, but we
thought Congress committed blunder,
if not something worse, in not making
the silver dollar of the same intrinsic
value with the gold dollar. This could
have been done by making the silver
dollar of the weight of 425 grains, in
stead of 4121. But as Congress thought
differently, we must, as good citizens,
submit to The action of our rulers, and
make the best Of it.
In the present embarrassed condition
of our country, an increase of the circu-
]ating medium is matter of prime ne
cessity. Most of the existing obliga-
tions, both public and private, were in
Cured when greenbacks were more
abundant than they are now, and when,
relatively to gold, they were at con-
siderable discount. Now, by stringent
system of contraction, they have been
brought almost to par with gold. 1t is
hard, therefore, to compel debtors to
pay in gold debts which were contracted
in currency ten or twenty per cent.
below gold. 1t is, in effect, adding ten
or twenty per cent. to every mans debt.
Justice, as well as sound policy, there
fore, requires that there should be an
augmentation of the currency, to ena-
BILE men to pay their debts without ru-
nous sacrifices.
To increase the currency by an infia-
ton of paper, would tend to depreciate
the whole volume in circulation, and
seriously impair confidence, and affect
the relative value of paper money to
gold.
The only safe way to swell the vol
ume of currency was, therefore, to re-
store silver to its old position as legal
tender money. This is an enlargement
of the circulating medium, without in
flation. Paper money rests entirely on
credit, and is liable to fluctuations with
the rise or fall of public confidence
Silver, on the other hand, has an in
trinsic, self-sustaining value. 1t is en-
tirely Independent of financial panics,
because it rests on solid foundation
The holder has it in his hands. Let
banks or individuals break as they may
his silver dollar is secure, because its
value is not dependent on the solvency
of banks or individuals.
It was right, therefore, to give to the
people this solid, safe, and convenient
currency, in the form of silver dollars
The bill proposes that the government
shall coin, every month, not less thar
two, nor more than four millions o
silver dollars. This will give US min
imum of twenty-four and maximum
of forty-eight millions of dollars every
year, to be added to the present volume
of currency.
Let us now see what effect this is likel.
to have on the business of the country
and in adding to the ability of debtors
public and private, to pay their debts.
The whole amount of currency, in
Guiding treasury notes and bank notes
is something in the neighborhood o
seven hundred millions of dollars. Thi
is hardly enough to meet the wants o
nearly forty-four millions of active, en-
terprising people; and, hence, we hea
continued complaints of hard times.
It cannot reasonably be doubted that
in view of the emphatic expression o
opinion by both Houses of Congress
it to be his duty to coin annually tn
maximum amount of forty-eight mil
lions of dollars. This will be sensibl
addition to the amount of money in cir
culatien. 1t will contribute, materially
not only to facilitate the payment of oil
debts, but to give an impulse to new en-
terprises. AT that rate, in five year
the volume of money will be increases
two hundred and forty millions, or NOR
than one-third, and in ten years the as
gregate volume of circulation will
increased from seven hundred million
to nearly twelve hundred millions G
dollars! The effect of such all increas
in the amount of money in circulation
can hardly be estimated.
Every one can understand that if y O
double the amount of money in circu
lation, prices of every commodity vii
rise almost in the same proportion. Sc
if you lesson the quantity one-hal1
prices of all kinds of property will fal
in corresponding ratio.
Keeping this plain proposition il
view, it must be obvious that as we
year by year, add to the volume G
money, prices must steadily rise.
If the increase in the amount Q
money were made by the issue of banl
notes or greenbacks, or any other kin
of paper money which was liable to b
recalled and thus withdrawn from cir
culation, we could not make any SAT
calculations on the permanency an
stability of the supply of money. Blu
when we have gold and silver as circu
lation, it is independent of banks Q
government. It needs no redemption
Its value is solid and substantial. It j
dependent on, and subject to, the ca
price of neither banks nor government
It has its own intrinsic value to stan,