McCook weekly tribune. (McCook, Neb.) 188?-1886, 1885-03-19
REPLYING TO MIR. cLErErAxD.

WtGh ue LGte L>cttcT or J,reSsde5h CtcUetuHus
Washington dispatch: The friends of silver
in the house, while at first inclined to make
formal reply to the letter of Presidentelect
Cleveland, since 1t has been given TO the pub
lie, decided at conference held this evening
toreply openly to those parts with which they
do not agree. They say they did not invite
controversy, but on the contrary, were anxious
to avoid it. They also say 1t was not untilit
had become known that a determined effort
was being made to induce the president-elect
10 commit himself and his administration In
advance to the gold side of the currency ques-
tion that they decided merely to ask him not
to commit himself until his cabinet had been
formed, and both sides OF the question could
be considered. They believe, however, in the
independence of the legislative branch Of the
government, and assert they will at all times
maintain it. They furnish the following as
statement of their views:
In the letter no distinction is made between
silver coinage and silver bullion. While it is
true that the silver bullion, which is excluded
from coinage and consequently from monetary
use, is worth less lin the ratio OF 10 to u than
IS per cent OF the gold dollar, silver coins,
which are admitted to monetary to use the
same as gold, are equal In value to gold coin.
The silver dollar will exchange for as much as
a gold dollar. 1t will even buy the gold with
which gold dollars may be made. France, with
a population of $4,000, 600 and territory not
as large as Texas. has In circulation 5000, Co.,
600 silver with $3.50 0O0, 0c0 gold, while we have
but 5000, 100000 full-tender silver to over
$500 000, 600 in gold Altogether s., 300 OOO, 900
silver coins, at ratio of ISL to 1, are held In
circulation in Europe, side by side with 81 600,-
frf.ld md ell bon fhar
including silver certificates, we have less than
$3.50, co., 600, which shows that in this country
there is more gold-than paper, and nearly three
times az much gold as silver. With this pro-
portion In our currency, and with gold and sill
yer equally full tender for everything, tits diff
cult to understand why the secretary of the
treasury might not If he chose to do so, pay
out more silver and less gold. OF course, If
whilereceiving into the treasury United States
notes, silver and silver certificates, gold or gold
certificates he pays out only gold, his stock of
gold would diminish. If, on the other hand,
he should pay out more silver and paper and
less gold the character of the reserve in the
treasury would control the secretary.
There would be no need for legal tender
II one who receives money be permitted to
choose the kind we will have That silver and
silver certificates displace gold is true, but
only as treasury or bank notes displace it.
The withdrawal of hundred millions of bank
notes, or the issuance of a hundred millions,
has the same effect on gold as so much in sill
Yer or silver certificates. Why has it never
been proposed to withdraw the national bank
notes as means of preventing the expulsion
of golds To the proposition that there now
exist or ever have existed under our constitu-
ton, obligations specifically payable in gold
the silver men feel it their solemn duty to en-
ter their most emphatic dissent at the very
outset of discussion of the question. No
such obligations exist or ever did exist. Web
cfa coid Gold elk at III
congress constitute a legal standard of value
in this country, and neither congress nor any
state has authority to establish any other
standard or to displace this" One act to
strengthen the public credit, approved March
IS, 1869, solemn'y pledged the United States
to the payment of bonds in coin. The refund
ing act Of July IA, 1870 provided for the pay
ment of all refunding bonds in coin, of their
present standard value, which is the same as
the present value. The resumption act of
Jan. IA, 1875. provides that from and after
January Jan. l, 1879, the secretary of the
treasury should redeem in coin the outstand-
ing legal-tender notes. By the act of Feb. %,
1878, providing for the resumption OF the COIN
age of the standard dollar, the silver dollars
were made legal tender for all debts and dues,
public and private, unless otherwise expressly
stipulated in the contract; and there is not
public obligation outstanding, and never was,
containing stipulation of payment in gold.
In January, 1878, congress adopted the follow
ing concurrent resolution, offered by Stanley
Matthews, then senator, now on the supreme
bench:
That all bonds of the United States issued or
authorized to be issued under the acts of con-
gress hereinbefore recited are payable, princi-
pal and interest, at the option of the govern
ment of the United States, in silver dollars of
the coinage of the United States containing
A1215 grains each of standard silver, and that
to restore TO its coinage such silver coins as
legal tender. in payment of said bonds prfn-
cipal and interest, is not in violation of the
public faith. nor in derogation of the rights
of the public creditor.
The opinions of secretaries of the treasury
from 1878 down are referred to as authority.
The opinions are valuable when supported by
facts and sound reasons, but ought not to con-
troll unless they are. 1t cannot be forgotten,
however, that these same secretaries have
steadily predicted what has not taken place.
The friends of silver concur in the opinion
that it is desirable to maintain and continue
in use the mass of our gold coin, as well as the
mass of silver already coined. They agree, too,
that it is of momentous Importance to pre-
vent the two metals from parting company.
But they have already arted company, under
The influence of silver demonstration in other
countries, and the hostility of the treasury and
banks to silver in this, but that the continued
coinage of silver at the rate of SIS, 00O, O00
wear will drive gold out of circulation in the
near future, or force 1t TO premium, does not
to them seem to be sustained by facts or sound
reasoning. The total volume of currency in
the United States, outside of gold, is less than
$50, OOO, O00 1t is believed to be principle
of economic science, perfectly well settled,
that if q volume of $3.50, 100000 is not suffi-
cient in itself to maintain prices in this cOun-
try at the level of international prices. then
gold will come here and stay here In sufficient
amount to make, with the volume already in
circulation, what will constitute our distribu-
tive share of the worlds money as determined
by our international trade. That $3.50, 900, 600
is not sufficient volume tomaintain prices at
the worlds level of prices is evidenced by the
fact that 5000, COO, 600 in gold, considerable
part of which is in circulation, either in the
form of coin or certificates, now stays here,
and it will go away only when prices become
lower elsewhere than they are here.
1t is believed, therefore, that no such crisis
as has been foreboded can overtake us under
the existing conditions tits not believed to
be in the power of all the banks in the coun-
try. even il they were so disposed, to take the
gold out of circulation and hold 1t Tor any
length of time at premium. They must first
lock up the worlds money and arrest the
worlds commerce. Nor can paper or silver
certificates now In circulation side by side
with gold expel gold. The gold can be ex-
pelled only by forcing into circulation, in adj
dition to $3.50, 0O0, 900, either silver or paper
aupal 70 the entire volume OF gold now In Cir