National Republican., 1884-03-21
A Threatened silver Panic.

number OF tho leading newspapers of the
country are criticising this decision and set
ting up the opinions Of amateur statesmen
Judgment Of the highest court in the land.
These dissenting editorial opinions are en-
tirely harmless, for tho reason that the re-
issuing Of leGal.tender notes is not practical
question. The act of 1873 did no HARM and
has served its purpose. Congress is not pro.
posing to further exercise its constitutional
power to issue paper money. Whether the
supreme court is right or wrong, it is not the
issuing of paper money that is now menacing
the prosperity of tho country.
Why should there be so much clamor about
the exercise Of doubtful power which is
not contemplated, and which may never be-.
come necessary again, when it is the iniu.
dicious and improper exercise Of perfectly
constitutional power that is threatening
financial disaster and ruinp Nobody dis
putes the power of congress to order the
coinage Of silver. This is one Of the subjects
over which the constitution gives congress
absolute control. But the improper use of
n perfectly legitimate power may be far
moro disastrous in its immediate conse-
quences than tho discreet exercise of dis
puted power. The Bland coinage bill, passed
Feb 25, 1878. is constitutional. but that does
not mako it salutary or expedient.
More than 16O,oOO,oOO of tho Bland dollars
have already been coined, and they arc still
being turned out from the mints at the rate
of 100000 month. OF the entire coinage
not more than i35,OOOOOO have gone into cir
culation. The remainder are stored in the
treasury vaults. This slowing away of super
| fluous silver coins must come to an end some
how; it cannot go on for an indefinite period
There are but two ways of getting the Bland
dollars into circulation-the government must
either redeem its paper currency in silver or
it must pay its creditors in silver.
At present our greenbacks arc as good as
gold, because the government redeems them
in gold but whenever the government begins
to redeem treasury notes in silver, or to pay
out large sums in silver, paper money will
drop to the silver basis, aud gold will COM
mand a premium equal to the difference
between the intrinsic value Of Bland dollar
and gold dollar. A standard silver dollar
is now worth about 50 cents, consequently the
premium on gold would be IS per cent if we
| should be obliged to come down to silver
basis The disaster which such a disturbance
of values would bring about can scarcely be
estimated; and yet it is imminent, and will
certainly come unless averted by wise legis-
lation.
Some years ago good many people, in the
to pay of their debts in cheap paper money,
and probably there are some now who would
like to compel their creditors to accept cheap
silver money, or cheap paper money convert-
ible into silver. In this way every debt con-
tracted on the gold basis would be cut down
Is per cent; that is, the money in which it is
paid will have lost Is per cent. of its pur-
chasing power. Debtors would be better
satisfied with this arrangement than credit
ors, but in the end both classes would suffer
by the huctuation of values
We suppose that there are still a good many
people in the country who would like to see
the holders Of United States bonds compelled
to accept silver in exchange for their interest
coupons, and are in hopes that some con-
tingoncy may arise in which the government
may be obliged to pay them in silver. What
ever satisfaction this may afford to those who
have sort of chronic grudge against the bond.
holders will be dashed with the reflection that
they will pay out their silver dollars as fast
as they get them, and the only effect will be
to add to the general depression caused by
over.weighting the currency with silver,
As everybody knows, the silver-producinG
states want the coinage TO 60 on, An assured
home market for $24, 100000 worth of silvel
per annum is no small matter to the mine
owners There are political considerations
connected with tho question which make
both parties timid about dealing with it,
-
Dental election. There are enough demo
Gratis in congress who would vote with the
republicans to stop the coinage Of silver il
there were no election pending
A plan has been suggested for getting ou
of the difficulty which is worthy of being
considered. II is briefly this Stop the
coinage of silver dollars under the Bland act
continue to buy 81, 100000 worth of silver
month at the market price; melt the silve
into bars of convenient size, and stamp eac
bar with its own weight and 6neness; max
these bars a legal tender at their marke
value. They would only be used in larg
transactions, and in settling balances cOul
be transported more easily than any otho
commercial product, gold alone excepted.
, Making auinIHe Abroad.
When a bill was put through congress som
four years ago removing the duty on quinn