The daily gazette., 1878-02-09


elsewhere, evenif Ii does not bring about
the readoption Of the bimetallic standard
in those countries that have adopted,
fmprovidently "a j think, the single gold
standard. IL is not correct reasoning TO
treat silver simply iss-a 2 marketable COM
modify, simply as bullion. Such reason
ing loses sight of the value that results
from the function of money and the full
legal tender quality. IL the greenback.
which has no Intrinsic value, no circula-
tion outside of the United States, and is
but limited legal-tender even here, is
yet within less than 2 per cent. of par
with gold, why should not silver money,
which has intrinsic value and which cir
culates over the greater part of the globe,
If endowed with the full legal-tender fac
ulty, rise to par with gold, especially if
we rate the metals at 1888 to /, while
most other nations using both give but
15t for ?
One reason why greenbacks have been
and are deprecated is the fact that they
have not been receivable in payment of
customs duties or of interest on the pub
lie debt. But make the silver dollar of
412! grains full legal tender and it will be
receivable for both these purposes, and it
must closely approximate, If it does not
reach, n par with gold. / believe that it
will reach that par.
Dat phPDo1E uVct nut, anu HllDHR<t
Gresham's law to have its effect, to what
extent would gold be expelled from the
country by silver? Manifestly only so
far as silver supplanted it, Three hum
dred millions In gold could not be driven
out by an issue of fifty millions of silver
the utmost effect could be to expel fifty
millions of gold, whose place would be
taken by silver--and the volume of me-
tallic money would remain the same. But
t,a IS Il h..
PEELED? Not unless three hundred mil
lions was all the metallic money that the
country needed. If it needs three hun
dred and fifty millions, land 1t needs more
than that to safely and certainly maintain
specie payments y the gradual addition of
fifty millions of silver to three hundred
millions of gold would not drive gold out.
But in truth we have not the half of three
hundred millions of gold, and when we
coming silver dollars we will find that we
are in no immediate danger of losing our
gold.
If gold be expelled 1t will not be SO
much by silver currency as by our small
notes. The one and two dollar notes
tend to expel both gold and silver, while
the five and ten dollar notes drive gold
out Of circulation. Gold circulates large
ly in England and France, but the Bank
Vi IInkidIu tSoutS uO uOtt VI a ltss ut-
nomination than f5 (S25) and the Bank
of France now pays out no note of less
denomination than 100 francs NEARLY
S20) Those who argue against this bill
because they want gold carrency--not
mere standard of value, but an actual,
free, and customary circulation of gold
coins-lose sight of the fact that we never
have had, and never can have such cir
culation while we continue to use small
notes, of either the banks or the Govern
ment. .. ia.u.
Metallic money is said to have two fa-
culties, namely, that IL is a standard of
value and an instrument of exchange. /
shall not 60 into the much-disputed ques-
ton of its merits ond dement's as a stand
ard of value, or whether 1t is possible to
establish any such standard that will be
invariable but it is obvious that to serve
as an instrument for the exchange prop
erty or services 1t must circulate. But it
will not circulate, except as subsidiary
coins, in any country that uses small
paper money. Whether the people of
the United States will ever give up the
use of small notes, i do not venture to
predict but, II they will not, they must
agree that, with us, metallic money shall
be shorn of one of its functions, that of a
circulating medium.
The important bearing of this fact upon
the bill before us and upon the question
of resuming and maintaining specie pay
ments l shall presently endeavor to ex-
plain.
Nv. In direct opposition to those who
say that the dollar of A124 grains ii coined
and made full legal tender will expel gold
from the country, another set of reason
ers say that it is silver that will go out.
Their reasoning is, that money flows to
that country where its purchasing power
is the greatest, and that as silver Is un-
dervalued in the dollor of 4123 grains as
compared with its valuation in the states
of the Latin union, it will leave our coun-
try and flow into those states. And so 1t
undoubtedly would tend to do were those
states to open their mints to an unlimited
coinage of silver five-franc pieces. But
will they do so? l think not. i think
they will neither do that nor will they
demonetize silver. 1 think that France,
for instance dare not demonetize silver.
But i expect that she will coin it to but
a limited amount SO as to preserve its par
with gold. And If that shall continue to
be her policy, we will be in little danger
of losing our silver.
V. Another objection to the bill-the
opposite of that last considered-is that
if it become law we will be flooded
with silver that Germany will pour her
surplus silver upon us, and our mines
Will produce so mueh tnat we VIII nave
more than we know what to do with.
have no fears from Germany. 1t is
said that she has eighty millions to spare.
Suppose it were all poured into the Uni
ted States, / think that we could absorb
it without injury. But will 1t be? Ger
tainly not, as it seems to me. / do not
believe that Germany can spare eighty
millions of her silver. But if she could,
the greater part of it would be much
more likely to go to Asia and to Russia,
Austria, and Spain to say nothing of the
Latin states, than to come to us who un-
dervalue silver as compared with the
rest of the world.
Nor do 1 think that we have anythin Z
to fear from an excessive product of our
mines. l have not been considered an
infiationist, but know of no valid rea-
son against enlarging our specie basis,
and if we are to have and maintain spe-
Gle payments it must be enlarged.
vi. Another objection to the bill Is the
well known argument against bimetal-
ism. 1t is said that bimetalism is incom-
patible with an unvarying standard of |
value that to have such standard we
must use but one metal and that, for
gold several reasons, is preferable to silver. |
And the most gloomy pictures have been
drawn of the rIlin that will hpfall Our