Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1884-09-13
SATURDAY. -. SEPTEMBER 10. 1854.
silver NEUTRALITY-SUSPICIOUS. Law.

Silver Money-Gresham's Law.
No. Kill. Of Economic Tracts" pub
Iished by "The Society for Political Educi-
tlon" New York;, Ia entitled "The stand
ard Silver Dollar and the Coinage Law OF
1881 Ii discusses the silver question from
the POINT Of view OF the monomctallis,s,
whose blindness TO facts right before their
eyes and clear vision as TO facts remotely
distant have heretofore been noticed by us
more than once.
II Is as strange to-day as II ever was be-
fore iha, men protesting to have mastered
the science Of political economy should be
writing pamphlets, and making speeches.
and arguing in newspapers, against putting
out any more silver dollars as currency.
although these have, according to their own
admission. n bullion value OF four iiiths Of
their face value, and yet have never word
TO say against gleenbacks or bank.noteS
neither OF which last.named kinds OF cur
rcncy can have any intrinsic value what
ever. A silver dollar rs worth at least eighty
cents as bullion. A paper dollar has no
yalue--is absolutely worthless in ITSELF A
silver dollar is good the world over for its
bullion value, and will circulate as readily In
Asia as in America. A greenback or bank
note circulates only because The community
which accepts Il as currency believes that
il will be redeemed by the bank or the Gov
eminent. The silver dollar, In VOL d, has
real value, intrinsic value, without refer
which issues Il, whilst The paper dollar de-
pends for its circulating power upon the
credit OF the Government which issues it.
The paper dollar issued by the United
States Government is just now as good
rs silver or gold, but the paper dollar
issued by the Government Of Peru, or
that OF Chile, or that OF Mexico, is not cur
rent. On the other hand, The silver dollar
mirted by the poorest government in the
world, and containing as much silver as
,he "dollar Of the daddles" contains (i12t
gIains), Is current OF its bullion value in
any country In the world. The " fiat" OF
u
it circulating power.
These statements are facts "known and
read" OF nil men, but these facts make no
impression whatever upon monometallist.
He Is waging o war against silver, and is
not TO be diverted from his purpose by
anything In the shape OF facts or argu-
nonts. lie may with a look Of condescensioH
tell you that greenbacks and bank notes
are redeemable IN gold, as II that
were really any answer to your ar
guments or facts. But let us con-
eede that It is an answer. What
followss We reply that according to the
admissions Of the monometallists them
selves, all objections TO silror doilaro and
silver certificates would at once be obyla-
ted by making these silver dsllars and sill
yer certificates redeemable in gold. Why
Dotf Willyou reply, "Because silver dol.
lar is worth AZ bullion or intrinsicaly only
foru-fifths OF It's face Value? Surely not,
when you favor the redemption OF paper
dollars which are not worth as paper or in
physically one per cent. OF their face value.
For more than six years the silver law
has been in operation, and has done good
service. Ii enabled the Government 10
resume specie payments in 1879. 1t has
warded of a disastrous general panic this
year. The statesmen in Congress pay no
to the rawlings OF men who know
nothing on the subject except what is
taught by the New York press. Those
statesmen will defend the silver law to the
last. Both parties in their national plat
foims profess TO believe in silver dollars.
and GHEsuAs's law allows them so to do.
What Is GREsHAN's law? This law Is
stated in the pamphlet under consideration,
and il was stated in Congress over and over
again IN 1873 as an objection to the silver
bill. II Is. in brief, that bad money when
I'm excess drives out good money, but that
good money cannot drive out bad money.
II applies not only TO moneys OF the same
all kinds Of money, in the same circulation.
- Gold compared with silver. or silver with
copper, or paper compared with gold, are
subject 10 the same law that the relatively |
cheaper medium of exchange will be re-
tanned In circulation aud the relatively |
dearer Will disappear"
The very men who quote GEEsnAM's law,
witch teaches us truly that bad money
drives out good money, tell us that nobody
wants silyer-in other words. that other
money drives out SILVER! Good money
cannot drive out bad money" But other
money does drive out silver. say the mono
metallists. These gentlemen take both
sides. They denounce silver as a kind Of
currency that nobody wants, and then turn
round aud tell us that bad money drives
out good. We know that GREsnAM's law
"a law OF finance. But We do not admit
that silver dollars are bad money. II they
are bad money. they have not driven out
the good money. Under GREsnAM's law
the cheaper money drives out the dearer.
Yet we are told that silver aas been driven
out Of circulation and forced back into toe
Treasury.
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The Tariff Question.