The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1885-09-12
The Silver Question.
From the Baltimore Sun.

FROM the Bduina0Te sun.
A correspondent of the Sun wishes to know
how the Bland act of February %, 1878, eff
fects the silver miners; whether 1t benefits
them at the expense and risk of the rest of
the population of the United States, and in
what manner the continued coinage of silver
tends to give us an inflated currency and to
produce a collapse of our finances. To take
these questions in their turn: The Bland act
benefits the miners directly by supplying them
an unfailing home market for some S28, 000,-
900 of silver annually out of a total product
of some $40, 100000, and indirectly by help
ing to sustain the price of silver in the mar
kets of the world. 1t favors or ''protects" the
silver miner in way that it does not favor
the iron, or coal, or copper miner. There is
no Justice in the governments buying up and
storing away unneeded silver, when it does
not in like manner buy up and store away
iron, copper, coal. wheat, cotton cloth, or
other products of American industry. If it
undertakes to supply an artificial market for
one thing, it can fairly be asked to do the
same for all. AS the purchase of all Ameri-
can products by way of "making a market
is impracticable, the United States govern
ment ought not to discriminate in favor of
any, Justice, therefore, demands a suspen-
sion of this purchase of silve~, especially as
the purchase is made at the expense OF tax
payers, most of whom are unwilling to handle
or keep it in the shape of 85-cent dollars, and
are of the opinion that its coinage in this shape
is doing them serious injury Every so-called
silver dollar is inflated TO the extent OF
fifteen cents. Its face calls for that much
more than it is intrinsically worth. The gov
eminent reckons among its assets 166, 854, 215
standard silver pieces which are stamped as
worth S166, 1854 ,215, but are really worth $685.
OPS, 1872 less. The 81 ,610,970 standard dollar
pieces in the hands of the people are really
worth SIS, GAL ,645 less than they profess to be,
and the 500, 079, 1896 of silver certificates in
their hands are worth ST., 1894 less. The
Bland act is responsible, therefore, for an in
fation to the extent of $20,053, $50 in the
currency in the hands of the people. If Sec
rotary Manning succeeds in getting into cir
culation the whole coinage of $208, 231 ,381 in
the shape either of coin or of certificates, the
imitation will go to the extent of some $751;
234, 707. This debasing of the currency is to
be deplored, but the greatest objection to con-
tinued coinage of cheap dollars is the danger
it threatens our finances. Silver dollars at
present pass for 100 cents in gold, but If their
number is largely increased, those who are
now disinclined to handle them may refuse to
take them at that valuation, and gold will
pass to premium. That would mean the
retirement of $685., GIL 1872 of gold and prob
ably the $346, 681, 016 of greenbacks from cir
lation, leaving in circulation 1888, $50, 813 OF
national bank notes and 1915, 1856, 439 in silver
coin of all denominations The basis of this
circulation would be silver, so that it would
be equivalent to only about $518,000 900, or
about 333 per cent. of the present volume of
the currency. That financial calamities
would ensue upon a sudden contraction OF
66S per cent. in the volume of the currency
any one can foresee for himself. The prices
of commodities must be seriously affected,
and the Is per cent. by which the face value
of silver exceeds its intrinsic value would dis
appear. On the So, ST., 815, 252 of deposits
in national, Safe and savings banks a loss of
S525, 772, 287, it is estimated, would accrue to
depositors. Those lucky enough to hold gold
might profit by selling it at Is per cent. pre-
MUM, but the depositors would obtain little
alienation of their sufferings from that re-
source. Fixed incomes would of course de-
preciate in their purchasing power, and other
consequences of an undesirable kind must
result. The debtor would find it harder to
get the silver dollar worth So cents than it is
at present to get gold dollar worth 100, so
that he would gain nothing from his opportu-
nifty to pay the creditor with debased coin.
Business could hardly be brisk, for some time
at least, after the collapse to the silver basis
occurred. In the face of these threatening
evils, to continue to coin bad dollars would
seem to be utter folly. If we must have silver
dollars let them be worth 100 cents in gold.
| There cannot be two standards in use at one
time.