National Republican., 1885-10-01
THE SILVER QUESTION.
SPEECH OF HON. GEORGE S. BOUTWELL,
BEFORE THE MIDDLESEX CLUB.
Practical, Wise Suggestions silver
Doliar-Goid Coins-A Fatal Error
A Way 20 Reiief-A League of silver
Using States.


A Way TO Relief-A League of silver
Using States.
Hon. George $. Boutwell,, in his address
yesterday afternoon before the Middlcscx
Club, at Boston, said
Mr.. PRESIDENT | am to speak to-
day upon a subject about which men may
differ fairly. It is subject however on
which the country is compelled TO form an
opinion, and that without much delay. In
this view of the case have accepted your
invitation to give to the members Of the
MiddleseX Club q statement In brief of the
views that | entertain. OF argument my
remarks are barren. This is not the time
nor the place for an extended discussion Of
the subject.
For an unknown period of time silver and
gold have been used as measures Of the
value Of property. In the coinage Of the
metals an arbitrary relative value has been
fixed by law. This relative value has not
always coincldod with the commercial bull
lion value of the two metals. Whenever
the difference has been considerable the
more precious coin has disappeared, and
the least valuable has become the sole
measure of the value Of other property, and
the basis of all business transactions. It is
not within the province Of law to control
this result.
In 1860 the bullion contained in Il silver
dollar of the coin Of the United States
would purchase the gold contained in n
gold dollar and leave remainder Of
I 35-l0Oth cents. In 1870 the value of sill
yer had so far deprecated that silver
dollar was worth in gold only 81 aud
26-l0O0ths. From 1870 there has been a
constant depreciation In the value of silver,
! and silver dollar is now worth only about
fOur-iifths as much as a gold dollar. In
the meantime the coinage of the silver dol
| lar In the United States amounts to about
$4,000 900. England adhcres to the policy
of maintaining gold standard Germany
follows her example, and the Latin states
are not controlled by any definite policy,
| although both metals are still recognized by
| law. In obedience to n law of business
| gold Is no longer n currency in the United
States. 1t is boarded in the treasury, by
banks and bankers, and by private parties;
to be used in transactions In other countries
or sold at premium whenever the balance
of trade shall be against the United States.
GOLD NOT A STANDARD OF VALUE.
In this condition of affairs It is an error to
assume that gold plays any part us cur
rency. II is with us no longer standard
OF value, and whenever there is II demand
for gold for any purpOse the coin will com
| mand premium. Holders of gold in the
United States look naturally for invest
ments In England. Debts due in England
are payable In gold; debts due in the United
States are payable in silver. Should Eng
land adhere to its policy and the United
States pursue its present course for ten
years, and the relative value of the metals
should remain as 1t now is, substantially,
the world will witness a test of the two
systems, and OF the results upon the pros
perity of the two countries.
In the meantime, however great changes
may occur A fresh discovery of gold would
tend to restore the equality of value be-
tween silver and gold. A failure of the sill
yer mines or an abandonment, IN cOnse.
quence of the low price of silver, of those
that have been productive, would tend to
the same result. The increased production
of silver since 1870, and its consequent re
duction in relative value with gold, ar,
due chiefly to the invention Of the power
drill by Charles Burleigh.
DEPRECIATION OF SILVER.
The depreciation IN the value of silver
is an event of very serious character in d
financial point of view, and tends to n re
suit that will have an important infIuenc,
upon the commercial nations of the world
Unless change of policy can be effected
not In the United States alone, but In Ger
; many aud England also, certain countrie,
will use gold alone, aud other nations vii
be compelled to use silver only. That fact
: would be a serious interruption to trade
as the uncertain element OF cXchanp,
would be introduced into every interna
tional transaction.
This statement rests upon the assump
tion that the quantity of gold Is insufficient
to meet the demands IL silver were de.
monetized by the nations of Europe and
America. This assumption Is justified,
think, but do not now undertake to prove
its truth.
SHALL SILVER BE DEMoNETIZED.
proceed upon two propositions; First,
that gold has ceased to be Il currency i'm tn,
United States, and, secondly, that a seriou,
attempt on the part of the United States and
of the latin states Of Europe to demonetiz,
silver would be fraught with evils and dis
asters, not only to the countries engaged IN
the undertaking, but also to the whole com
mercial world. | exclude, therefore, from
my thoughts the notion that the United
States and the states of Europe can even
agree to the demonetization of silver unless
there should he an extraordinary increase
in the supply of gold, The alternative sub,
mitted to the commercial world by the force
OF events is this Shall the countries Of Eu
rope and America be divided into two
classes, one using silver and the other using
gold, or shall all countries use both metals
upon fixed and arbitrary relation of val.
uesY
! cannot doubt that the latter policy is
the wiser one, consistent as It is with the
experience Of mankind, and supported as
! think it is, by the teaching Of existing
| facts.
If this be so, how is the result TO he at
tainedY | cannot doubt that we have lost
our footing upon the vantage ground which
We once occupied.
FATAL ERROR.
When the silver bill was under considcra-
tion in 1876 we were far on our way to Il re-
sumption OF specie payments upon Il gold
basis. Time and prudence were all the
needed requisites AS gold-using country
we should have been In II commanding posi-
tiOn from which we could have eXcrted n
mighty influence over England. Some of
you may recall the fact that, as a member
OF the commission, recommended DELAY I'm
the coinage of silver until an international
convention could be assembled for the con
sideration Of the subject. Congress decided
to authorize the coinage Of silver and to call
a convention for a future day. That was
the fatal error.
When we had accepted silver, which was
already deprecated, the statesmen of Eng
land and Germany fOrcsaw that we should
use silver, and that the gold then In the
United States and to be produced in the
United States would be at their command
Our second error was an administrative
one The executive department did not at
once accept the result which events were