Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-12-03

S lver dollars beng receivable Tor customs
dues, have naturally not entered into general &
but have returGed TO the treasu- b
~ In payment of such dues, and thus the c
only effect of the attempt Of the department Fl
TO circulate them has been 10 dun nlsh the i
gold revenue. After resumption these coins 4
will circulate IN considerable sums for small !
payments. To the extent that such demand l
will give employment to silver dollars their
use will be aid TO resumption rather than I
a hindrance, but II Issued In excess Of such I
demand they will at orce tend to dIsplace /
gold and become the sole standard, and grad !
ually, as they increase IN number, will fall to S
their value as bullion. Even the fear or sus-
picion of such an excess tends to Danish gold,
and, if well established, will cause a cOntIRu-
Gus drain o. gold until Imperative necessity
will compel resumption IN silver alone. The
serious effect of such radical change in our
standards of value cannot be exaggerated;
and its possibility will greatly disturb conf
dence In resumption, and may make neceSsa-
~ larger reserves and further sales of bonds.
The secretary, therefore, earnestly invokes
the attention OF congress to this SUN ct, with
view that either during the present " the next
session the amount Of silver dollars to be issued
be limited, or their ratio to gold for coming
purposes be changed. Gold and silver have
varied in value from time to time In the his
tory of nations and laws have been passed
| TO meet tins changing value. In cur country,
| by the act of April ,, 1872, the ratio between
them was fixed at one of gold to fifteen Of
silver By act OF June % 1884, the ratio
| was changed to one OF gold to sixteen Of sill !
yer. For more than century the market /
value OF the two metals had varied between +.
] these two ratios, mainly resting at that fixed /,
| by the Latin nations, OF one to fifteen and
half. But we cannot overlook the fact that /
| within few years. from causes frequently /
discussed IN congress, great change has
occurred In the relative value of the two
metals. 1t would seem TO be 6Xpedient 20 !
recognize this controlling fac'-one that no
| nation alone can change-by careful re-
| adjustment of the legal ratio for coinage of
one 10 sixteen, so as to conform to the rela-
tive market values OF the two metals. The
ratios heretofore hx-d were always made
with that view, and, when made, did conform
as near as might be. Now that the pr0duc-
ton and use of the two metals have
greatly changed in relative value,
cores pondIng change must be made
IN the coinage ratio, There Is no
peculiar f)rce or sanction In the present ratio
that should make US hesitate to adopt an
other, when, In the markets of the world. 1t
! Is proven that such ratio Is not now the true
one. The addition of One-tenth or one
eighth to the thickness of the silver dollar
would scarcely be p5ceiyed as an incoveni-
: euce 10y the holder, but would inspire conf
/ dence, and add greatly to its circulation.
As prices are now based on United States
notes at par with gold, no disturbance vi
= values would result from the change.
: 1t appears from the recent conference at
Paris, invited by US, that other nations Will
not join with US IN fixing an international
rate, AID thu. each country must adapt It's
= laws to its own policy. The tendency OF late
< among commercial nations Is to the adoption
s of a single standard Of gold and the issue OF
r silver for fractional coin. We may, by Ig-
nOrng this tendency, give temporarily III
! creased value to the stores of silver held IN
q Germany and France until our market ab
u
= as nearly equal to gold as practicable. we
= make market for our large production Of
e silver, and furnish full, honest dollar that
will be boarded, transported or circulated,
t without disparagement or reproach.
i 1t is respectfully submitted that the United
s States, already so largely interested II trade
S with all parts of the world, and becoming by its
e population, wealth, commerce and produc-
e tons, a leading member of the family of ma
), tons, should not adopt standard of less in
4 trinsic value than other commercial nations.
Alike interested in silver and gold, as the
q great producing country Of both, 1t should
= com them at such z ratio and on such con-
s dtlons as will secure the largest use and CIR
e culation of both metals without dlspiacIng
: either. Gold must necessarily be the stan
q dard of value In great transactions, from It's
greater relative value, but 1t Is not capable of
# tine division required for small transactions;
d while silver is indispensable for a multitude
n OF daily wants, and is too bulky for use IN
rs the larger transactions of business, and the
IS cost of its transportation for long distances
$ would greatly increase the present rates of
e exchange Ii would, therefore, seem to be
e the best policy for the present to limit the
l. aggregate issue Of our silver dollars, based
n on the ratio of sixteen to one, to such sums
e Us can clearly be maintained at par with
e gold, until the price of silver in the
Il market shall assume def ate ratio to gold,
g when that ratio should be adopted, and our
] made f0 conform tn IT. and Tbp
u tary respectfully recommends that he be
/. authorized to discontinue the coinage of the
lie silver dollar when the amount outstanding
8 shall exceed fifty million dollars.
,e The secretary deems 1t proper to state that
.e in the meantime, in the execution of the law
IF as it now stands he will feel it to be his duty
n to redeem all United States notes presented
lie on and after January LIST, next at the office OF
Is the assistant treasurer of the United States
Is | in the city of New York, In sums of not less
lie than fifty dollars, with either gold or silver
Of coin, as desired by the holder, but reservina
h the legal option of the government, and "a
: pay out United States notes for ali other de-
mauds on the treasury, except when coin Ii
Dr. demanded on coin liabilities
d il lie his duty ar executive otflcer to frank
sr ~ state his opinions, so that If be in error
l. congress may prescribe such policy as Is hes
1T for the public interest.
ID FUNDING.
re The amount of four per cent. bonds solo
UEGl12 luG present year, 70 NONtulNf-
10 23d, Is $lO0, &c, 500, OF which S94, 11O, so
1t were sold under the refundiDg act, approved
It July IA. 1870. SIX per cent. bonds, com
10 monty known as fVe-twenties, to an equa
D amount, have been redeemed, or viii be re
deemed as calls mature. This beneficial pro
q cess was greatly retarded by the require
= ment OF the law that subscriptions must bt
g. paid in coin, the inconvenience of obtaining
lie which, to the great body of the people cut
IL side OF the large cities, deferred many sales
,e This will not affect sales alter resumption
when bonds can be paid for with Unite'
Re States notes. The large absorption OF Unlte'
SIS States securities IN the American market, Z.
At reason of their return from Europe, togethe
lie with the sale of four and a half per cent
lie bonds for resumption purposes, tended TO re-
Z tard the sale of four per cent. bonds. A!
= from the best aivIces, not more than 500,
100000 of United States bonds are now held
d out OF the country, 1t may be fairly anuclpat
1t ed that the sale OF four per cent. bonds, here
1r after, will largely increase.
IS Prior to May, 1877, United States bond;
v were mainly sold through an association oi
= bankers. Experience proves that under the
2. present plan of selling to all subscribers, or
Is terms fixed by public advertisement, though
V the aggregate OF sales may be less, their dis
l. tribution is more satisfactory. Under q
h popular loan the interest IS paid at home
le and the investment Is available at all times,
ID without loss, to meet the needs Of the holder
re his pOllCJ HAS DtSu carefully lOSlCLtu ID
r other nations, and should be specially so IL
ours, where every citizen equally participate
= in the government of his country. The
" holding of these bonds at home, In small
/ sums well distributed, is of great Importance
re in enlisting popular interest IN our
le habits OF thrift, and such holding
n in the country is far more stable and
l., less likely to disturb the market than It would
l. be In cities or by corporations, where the
y bonds can be promptly sold IN quantities.
Y The three-months public notice required
o by the fourth section of the retundiDg act to
! be given to the holders of the FIVE twenty
n bonds to be redeemed, necessarily involves a
V loss to the government by the payment OF
d double interest during that time. The no
: tice should not be given until subscriptions
:, are made or are reasonably certain to be
: made. When they are made and the money
}. is paid into the treasury, whether 1t is kept
:, there idle during the three months or depos-
f tied with national banks under existing law,
e the government not only pays inter st ca
d both classes Of bonds during the ninety days,
" but If the sales are large, the boarding OF
y large sums may disturb the market. Under
: existing law this Is unavoidable; and to Initi-
= gate 1t the secretary deemed It expedlent
i during the last sumner to make calls IN an
tIcIration of subscriptions, but this, though
d legal, might, In cases OF failure OF suSscrp-
q tons, embarrass the government IN paying
It called bonds. The long notice required by
n law is not necessary III the interest OF the
" holder of the bonds, for, as the calls made
2 by public notice and the bends are indicated
!, and specified by class, date, and number, in
:. tne order of their numbers and issue, he by
a ordinary diligence can know beforehand wheT
. his bonds IN due course will probably b'
/ called, and will not be taken by surprise.
!, The secretary therefore recommends tina
d the notice to be given for called bonds be, a
n his discretion, not less than ten days no
r, more than three months. In this way b
n will be able largely to avoid the payment c
double interest, as we'll rs tae temporary con
er TRACTION of tie Currency, and may iT Tia
T; maturity Of the call al time when the intel
ie est Of the called bonds becomes due and par