The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-08-12
:. par,c-rhe SILVER Danger.


m editorial in the New York Tribune OF
Friday, and "Thc Silver Danger" the sub
iect OF an editorial in the Herald OF inc
same date. Botk articles were entirely I'M
necessary. Both arc rather sensational
than iniormatory.
Why should there be panic! one OF
our exchanges says, Because there has been
too much speculation in commodities which
when brought to market either cannot DE
sold at AL or else cannot be sold Tor as
much money as has been paid, or contract
ed TO be paid, for them. Was there ever n
manic produced by such causey A panic
is OF course always senselcss thing, based
nnon no real foundation. Tor else it would
not he panic;) but for all that the public
must be able at least TO imagine that there
is a cause for distrust.
The Tribune tells us something on this
point when IL says:
"The money market is unusually wed
supplied, and the rate Of interest Is eXcep-
tionally low. For some time the Treasury
has offered to redeem any part OF s32,OOO,-
600 Of % per cents, with accrued interest
TO date OF presentation, but there is 80 lit
tie demand for money that only an insig-
niiicant amount OF the bonds has been pre-
sented."
That fact ought of itself TO quiet all
fea,s OF a panic. The Tribune further
says /:
"Therc has been no period OF reckless
ovcr-fradin0 and. cXcept in certain
branches OF trade. the volume OF CONNER
cial Indebtedness does not seem to be large.
II Is much greater, 10 be sure, than it was
when hard pan was reached in 1878.
The expansion Of credits in 1879 and 1880
was undoubtedly great, but business was
generally prosperous then, and IL was not
mil the disastrous fall OF 1881, with lis
partial failure Of crops, that commercial
disappointment could have caused much
accumulation OF Indebtedness. Since that
time the prevailing disposition has been
altogether unfavorablc to an expansion OF
credits. In fact, the Apprehension OF dis"
aster has checked operations for fully TWO
wears. so that, instead Of dangerous eXpan-
SION, there has been almost constant liquid
alton since the summer OF 1851"
The Tribune thus shows that there is
nothing in sight that ought to produce
panic.
The Herald is gold lunatic. 1t is afraid
Of silver. At the end OF long diatribe, it
says:
"When silver becomes the predomina-
ting metal in the Treasury coin-balanceS
and the reserve against greenbacks, the
grcenback can be worth only rs much as
the silver dollar. or about eighty-four cents.
That is TO say, the currency must become
deprecated to that extent. All prices but
that OF labor will then rise. and therefore
the full loss will be borne by the working
man. The rich man can protect himself
against loss; the man who lives by his
labor has no remedy"
In the first place, the silver in the Trea-
sury averted panic IN 1879, enabled the
Government TO resume specie payments,
and is now all that deters spectators from
making n run upon the Treasury for spe-
Gle. Greenbacks are redoemable in both
gold and silver. But for the silver bill.
there would have been no possibility OF
resumption in 1879.
Secondly, what confusion of ideas the
Herald is guilty of. When silver becomes
the predominating metal, quoth that Jour-
nal. the greenback can only be worth as
much as silver. Why must that be so? The
greenbacks themselves, which have no in
trinsic value at all, are the predominating
element in the currency, yet gold and
silver have not fallen to zero. Why
not? Because, so the Herald will say,
the creenbacks are redeemable in gold and
silver. But silver dollars are redeemable
In gold, TO all intents and purposes. AS
long as there are gold coins enough in the
country to fix the value of dollar at
25 $40 grains OF gold, and the Government
redcems It's silver dollars by taking them
at the price Of gold dollars for customs-du-
ties and internal taxes, and these customs
duties and internal taxes amount to over
three hundred millions of dollars year,
there will be no depreciation in the value
OF the greenbacks. They will be as valu-
able as the gold with which they are re-
deemed.
There is, therefore, no occasion for q
panic. and no reason to fear depreciation
of the silver dollar. The event will prove
all the Herald theories as TO the "silyer-
danger unfounded. The silver in the
Treasury will also aid in preventing :
panic. 1t is a balance-wheel. Be sure Of
that. The theories OF certain would-b'
political economists need revision.