The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1885-03-12
THE SILVER QUESTION.
An Earnest Protest Against the Position
Assumed by Mr.. Arthur's
Successor

ASSOCIATED Press dispatch from washinRton.I
The friends Of silver In the House, while at
first inclined to make formal reply to the let
ter Of Presftent-elect Cleveland, since ft has
been given to the public. decided ~ con-
ference held this evening TO reply openly To
those parts with which they do not agree. They
say they did not invite q controversy, but. on
the contrary. were anxious TO. avoid 1t. They
also say IL was not until IL had become known
that determined effort was being made to INF
duce the President elect to commit himself and
his administration In advance To the gold side
Of the currency question that they decided
merely to ask him not to commit himself un-
I'll 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 u. They
furnish the following az a statement OF their
views:
silver coinage and silver bullion. While IL is
true that the silver bullion, which IL excluded
from coinage and consequently from monetary
a n tae Z, 10 70
are admitted to monetary use the same as gold.
are equal in value to gold coin. The silveFdol-
viii s even buy vt the Is gold with which gold
dollars may be~made. France, with q popu-
lation OF 36.O00.OO0 and territory not as
silver with ss;s, 100000 gold. while we have
but $500, 900 full-tender silver to over
$500, 100000 In gold Altogether $l,s00, 0O0, 600
circulation in Europe. side by,side with s.. sOo.-
OK. 600 gold. or paper and silver together, in
Guiding silver certificates. we have less than
$3.50. DOC. 900, which shows that In this country
there is more gold than paper. and nearly three
times as much gold as silver. With this pro-
portion IN our currency, and with gold and sill
cult to understand why the Secretary OF the
Treasury might not. II he chose 60 do so, pay
out more silver and lees gold. OF course, IL
while receiving into the Treasury United States
notes, silver and silver certificates gold, gold
certificates he pays out only gold, his stock of
gold would diminish. II, on the other hand, he
should pay out more silver and paper and less
gold. the character Of the,reserve In the Treas
ury would control the Secretary.
There would be no need for legal tender IL
one who receives money be permitted to choose
the kind he will have. That silver and silver
certificates displace gold Is true, but only as
Treasury or bank notes displace it. The with
drawal Of q hundred m lions of bank notes. or
the issuance Of q hundred millions, has the
same effect on gold as so much in silver
or silver certificates. Why has 1t never been
proposed to withdraw the national bank notes
as means Of preventing the expulsion OF gold?
To the proposition that there now exist, or ever
have existed under our Constitution. obliga-
tions specifically payable in gold the silver men
feel 1t their solemn duty to enter their. most
emphatic dissent at the very outset OF a discus
sion of the question. No such obligatons s
and silver at rates fixed by Congress constitute
legal standard Of value in this country, and
establish any other standard or TO displace
this" One act to strengthen the public credit,
approved March TX, 1869, soemnly pledged the
United States to the payment of bonds in coin.
The refunding act of July II, 1870, provided for
the payment of all refunding bonds in coin. of
their present standard value, which is the same
Jan. IA is7s, provides that from and after Jan.
1, 1879. the Secretary OF the Treasury should re-
deem In coin the outstanding al-tender notes.
y ,ne Of q the coinage Of tbe
the silver dollars were made legal tender for all
oebts an0 dues. public and private, unless
saa there aes IN pa
lie obligation outstanding, and never was.
containing a stipulation of payment in gold. In
January. 1878, Congress adopted the following
concurrent resolution, offered by Stanley Mat
bench:
authorized to be issued under the acts of Con-
gress hereinbefore recited payable, princi-
pal and interest, ut the option OF the Govern
ment OF the United States, in silver dollars of
the coinage of the United States, containing
4l2ld grains each of standard silver, and that to
restore TO its coinage such silver coins as legal
tender, in payment OF said bonds. principal 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 1873 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. It cannot be forgotten,
however. that these same Secretaries have stead
lily predicted what has not taken place. The
friends OF silver concur in the opinion that 1t Is
most desirable to maintain and continue In use
the mass of our gold coin. rs we i as the mass of
silver already coined. They agree. too. that 1t
is Of ,momentous Importance to prevent the two
metals from parting company But the two
metals have already parted com any, under the
influence of silver decentralization in other coun-
tries, and the hostility OF the Treasury and
banks to silver In this, but tina, the continued
coinage OF silver at the rate OF sos, 900 year
will drive gold out OF circulation in the near
future. or foreeSit to premium. does not
IN IaU fofn nal xyf OF
reasoning. The total volume of currency in the
United States, outside OF gold, is less than
$75o,ooo0o0. 1t Is believed to be principle of
economic science, perfectly we'll settled. that il
a volume Of $3.50. 100000 Is not sufficient in itself
TO maintain prices in this country 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 distributfve share of the worlds
money as determined by our international trade.
That $3.50, 0000 900 IL not sufficient volume to
maintain prices at the worlds level of prices
is evidenced by the fact that $500 100000 in
gold. a considerable part Of which is in.circula-
ton, either i'm 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 ander the
existing conditions. IL Is not believed TO be in
the power Of all the banks in the country, even
II they were so disposed, to take the gold out of
circulation and hold IL for any length OF time at
premium They must first lock up the worlds
money anu dfrcsJ tue WOTlu \ commerce. nor
can paper silver certificates now in circula-
ton side by side with gold expel gold. The gold
can be expelled only by forcing into circulation.
In addition to $3.50, COO 00O either silver or paper
equal TO the entire volume of gold now in cir
culation. In that manner, under Gresham 5 law.
gold might be expelled. and probably would be.
IL IL doubtless true, too, that IL the population
and wealth Of this country we're at a stand, then
the continued coinage OF silver In sufficient vol
ume would In time expel gold from circulation,
but as long as the population and wealth go on
increasing, then the conditions of the problem
are changed. In fact. in order To preserve
stable ratio between the money volume and the
less than si0000,000 currency OF some kind "
the population and wealth calls for an addition
II, while these conditions continue, silver is
coined at the rate only of t2s.O0o,Ooo a year.
there IL 6ft still considerable void
TO be filed with gold. This IL the rea-
son why gold has increased in the country
steadily since the act OF 1878 passed. and
why gold has increased by nearly Sl4 900 0D0 dur
ing the last year. and is now increasing ut the
rate OF nearly 1880, 900 month. notwithstand-
ing the depression Of business in the country
and "a matter of fact there Is to- day more gold
In this country than there ever was before i'm its
whole history. Another fact Is that $50, OO0, 90
of gold I'm the treasury Was put there in exchange
for silver certificates.
1hs immediate effect of stopping tho
coinage OF silver must necessarily be TO
lower the price OF silver bullion and gradually
TO appreciate the value OF gold the world over.
The difficultios eqfabIshfnU