The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1878-02-02
The Silver Question.

spread before the country since the intro
duction Of this subject in Congress, and
men Of inquiring minds have read them
with avidity with a view to understand it,
and form their own opinions upon an in
telligent basis. A brief summary Of the
views Of Senators Wallace and Bayard,
given on Tuesday, are presented below, in
addition to what has already appeared upon
the subject:
The morning hour having expired, the res
olution was laid aside, and the Senate resum-
ed consideration of the unfinished business,
being the bill to authorize the free coinage of
the standard silver dollar, and TO restore its
legal tender character.
Mr.. Wallace, of Pennsylvania, said, for the
first time in the history of this country the
Government is urged by great interest to
put and keep silver in subordinate place
and to make gold the sole measure of value
to add to the value of gold by debasiBg and
degrading silver. Such has never been our
policy. The doctrine pushed to its logical
conclusion is, reduce the measure Of values
lower than the price Of commodities; lessen
the wages of the toiler. Against this our
history protests. There are but two questions
in the discussion. First, shall gold alone be
the measure of values, or shall we use both
gold and silver? Second, shall we REGULATE
the value" of our coin by the commercial
worth of silver bullion measured in gold coin
to day, or retaining the relative proportions
that now exist, carefully try the future.
The first question, then, Shall gold alone
or gold and silver be our measureY We.un-
hesitatingly solve for this double standard,
because gold cannot be subdivided to suit the
necessities of the people, whilst gold and sill
yer is just to all classes. Our policy as a
people has initiated and maintained the dou-
bic standard. The Constitution and laws up
TO 1878 recognize and enforce this policy
Decentralization of silver by US leads to its
total disuse. The total disnse of silver as
money reduces the measure of values and in
creases the value OF money Indebtedness. It
viii destroy its use as subsidiary coinage.
1t will give the world a scanty, instead OF a
full circulating medium of intrinsic value.
Bulk IS no objection to the use Of silver for
deposit, as the cost of transportation is based
upon value and not on weight. Experiences
teaches that the use of the double standard,
with universal relative value, does not drive
out either metal. Its reconciliation and use
give bcIAadu dIu haiuE 70 sllfET anu LelQ
equalize it with gold. As silvcr-prodncing
nation it is to our interest to give il us as
money. If we demonetize il we discriminate
against our own productions. Weappreciate
gold by discarding silver and legislate to raise
the value of the articles we are buying. This
IS contrary to the interests of our own people
and demanded by no standard of morality
With double standard there is less huctua-
ton in value than with q single one The
use Of both metals gives healthy progress
basis for confidence, value to currency in
paper, and Just measure Of value. The use
Of but one strikes out Of existence a large
part Of the worlds capital as a measure of
value, and is prejudicial to the progress of
civilization. The value of the dollar of 412I
grains has been steady from 1892 to 1873.
Its value in all these years has never been
interfered with by legislation. IL is implied
in the word ''coin" used in all of our statutes
creating Indebtedness. Its coinage was sus-
pended not because it was cheaper, but be-
cause it was dearer than gold. During all of
the years when our credit was pledged, as
well as when the public credit act of 1869 and
the funding act Of 1870 we're passed, it was
above par in gold and was plainly implied in
our contract. There is nothing in our obi
CATIONS to our creditors that impinges upon
our right or power TO retain the double stan
dard. Il IS he only safe and sure path to
resumption of specie payment. II is most
unjust and inequitable for those who own and
control the measures of values 10 seek to re-
duce the quantity thereof upon the ground
that there Is An over supply of one of them.
Those who own the debt have no right to die
tate the terms of payment. Those who owe
it and are to pay 1t are to be consulted before
the contract is changed. There is no foun-
dation either in morals or in law for enhan-
cling the value Of the debt, and it is neither
just nor expedient to do so, and the exercise
of the power to adopt gold standard awak-
ems distrust among the people and tends d.
rectly to weaken the binding obligations OF
the public faith. Are my brethren on this
side of the Chamber determined to drive us
as an organization into the vortex of unlimi-
ted paper mutations? We do not want this
in Pennsylvania, and we pray to be relieved
from the memorable fate to which your policy
condemns us. Why is il that we cannot meet
upon the common ground of constitutional
money Of gold and silver? Are those who
live east of the Susquehanna so welded to
the policy of England in a single standard,
that no unity of action is possible? Is there
any safer ground for the best interest of the
whole people, for debtor and creditor, for
bondholder and taxpayer, than restoration
of an ancient policy of constitutional money
of gold and silver? Our second question l. :
If we return TO the double standard, how
shall we regulate the value of our coin ?
Shall we reduce the value of the gold dollar
by decreasing its weight? This we cannot do
without violating our contract made in 1870.
Shall We increase the value of the silver dol
lar by adding to its weight, measuring silver
bullion in gold coin to-day This would be
unjust to the people, for It allows nothing for
the increase in value of bullion resulting from
its use and its legal tender functions as money.
If this be done, and silver regains its place,
It will fly from the country, because oyerval-
ued. Shall the dollar of 4l2I grains be re.
coined? What is its status under the law ?
Will the demand for silver, consequent on its
recoinage under this bill aud the debt-payine
power conferred upon it, appreciate its value,
and to what extent? This bill is not the
Bland bill. The free coinage feature Is struck
out. The Government buys its own bullion
monthly, not less than two nor more than
four millions per month. The difference be.
tween bullion and coin belongs to the Gov
eminent. This gives a regular monthly de-
mand for bullion, and will increase in value.
The law of demand and supply applies to gold
and silver bullion.
Lessen the demand, prices decrease; in-
crease the demand, prices rise. Our demand
for coinage must increase the value of bullion
as a commodity. 1t is this law that has de.
preciated silver and appreciated gold Legal
lender function or debt-paying power adds to
the value Of the coin. 1t is this that gives
power and yalne to paper legal tenders. Our
subsidiary coin is worth but so cents as bull
lion, but it passes as 100 cents. England
keeps in circulation $4,000, 600 of subsidiary
coin at 100 cents, whilst it is worth but 50.
Legal tender power is equal TO 20 per cent.
IN this case. The thaler is legal tender in
Germany, and the five-franc in France; they
maintain their relative position, although all
other silver depreciates. 1t is argued that
the use of gold IN equity cOmpels us 10 return
the same metal. Practically. notes and bonds
were exchanged for bonds; gold or coin was
rarely paid. The creditor who gave us gold
took his option, and paid in the cheaper me-
tai up to 1873. Gold was the cheaper. Sill.
yer, up to 1873, was above par. They had
an option in payment, and we gave them an
obligation reserving our option to pay; an
equity cannot arise If II must base itself upon
the violation of express contract On the
face of the contract was the express contract
10 pay in either metal; those who bought
since 1873, are on no higher grounds. The
law gave no one right to waive an option, but
the very reverse. The bond bought in 1876
expressed the contract in plain terms Full
ratio was given. No estoppel can arise OF
such state of facts. lfthis doctrine is sounC
an equity repeats the constitutional power tC
regulate the value Of our coin. Policy OF
expediency give it no higher standard. Our
first duty is 10 be Just. This does no. include
ffira IS he a,,T e. 4.