Wichita daily eagle. [volume] (Wichita, Kan.) 1884-1886, 1885-10-02
THE SILVER QUESTION.
Speech of George s. Boutwell, Be-
fore the MIddiesex Club IN
Boston.

dollar. and leave a remainder OF
4 35-l00th cents. In 1870 the value of
silver had so far deprecated that
silver dollar was worth in gold only
81 and 26-1000ths. From 1870 there |
has been constant depreciation III
the value of liver, and a silver dollar
is now worth only about foui -fitths as |
much as gold dollar. In 'ha mean
time the coinage of the silver dollar IN |
the United States amounts TO about |
500, 100000. Eng ! al adhered TO
the policy of maintaining
gold standard. Germany fol-
lows her example, and the Latin states
are not controlled by any definite pol.
lev, although both metals are stiil
recognized by law. In obedience to
ia of business gold is no longer a
currency in the Uni'cd States. 1t is
boarded in the treasury, by banks and
bankers, and by private parties, 10 be
used in transactions in other countries,
or sold at premium whenever the
balance of trade shall be against the
United states. In this condition of af-
fairs il is an error TO assume that gold
plays any part in currency. Its with
us no longer a standard of value, and
whenever there is demand for gold
for any purpose the coln will command
premium. Holders of gold in the
United States look naturally for in
vestments in England. Debts due IN
England are payable in gold; debts due
in the United States are payable in sill
YER Should England adhere TO its
policy and the United States pun sue
its present course for ten years, and
the relative value of the metals should
remain as it now is, substantially, the
world will witness test of TIE two
systems, and of the results upon the
prosperity of the two countries.
"The depreciation i'm the value of
silver is an event of a very serious
character in financial point of view,
! and tends 10 a result that will have an
important influence upon the com
mercial nations of the world. Unless
a change of policy can be effected, not
in the United States alone, but in Ger
many and England also, certain coun-
tries will use gold alone, and other
nations will be compelled to use silver
only. That fact would be serious i'll
terruption TO trade, as the uncertain
element of exchange would be intro.
duced into every international trans
action.
Il proceed upon two propositions:
First, that gold has ceased TO be {
currency in the United States, aud
secondly, that serious attempt on
The part of the United States and o
the Latin States to demonetiZe silver
L 4. l.. .,.I Il
tiers, not only to the countries engage,
in the undertaking, but also TO tn
whole commercial world. | exclude
therefore, from my thoughts the no
ton that the United States and tn
states of Europe can ever agree to tn
decentralization of silver unless there
should be an extraordinary incTeas
in the supply of gold. The alterna
tive submitted to the commercial
world bv the force of events is This
Shall the countries of Europe au'
America be divided into two classes
one using silver and the other usin:
gold, or shall all countries use boil
metals upon fixed and arbitrary re
lation ofvalues!
, "When the silver bill was unde
consideration in 1876 we were far %
our way to resumption of specI
payments upon IA gold basis. Tim
and prudence were all the neede'
. requisites. As gold-using countr,
We should have been in a commanding
position, from which we could hav
exerted mighty influence over Eng
land. Some of you may recall the fac
that, as a member of the commission
recommended delay in the coinag
of silver until an international con
vention could be assembled for tn
consideration of the subject. Con
gress decided to authorize the coinag
; of silver and to call convention for
future day. That was the fatal error
If the government had immediatel
accepted the silver bill, and used tn
coin As il came from the minis in til
discharge of all its obligations, tn
country would have been brought a
once, and when remedy was posi-
Bile. to a full realization of the evil
the inevitable evils of a dcpreciate
coin currency. This not being done
I, the delusion took possession of tn
2 public mind that it was possible t
, create an inferior currency, and We
use the superior currency and EMO
its advantages.
"When the Funding bill of 1870 wa
f, passed. the silver dollar was equal j
, value to the gold dollar, and hence th
t pledge given TO the world was that tn
bonds should be paid in the coin G
. the United States at its then standar
weight. The pledge is not for gold o
silver coin especially, and the publ
creditor is therefore bound legally (
accept payment either i'll silver or gol
at the pleasure of the government
Thus has the passage of the Silver bi
. given TO the country the inheritanc
of most troublesome question @
public policy. Some advantages, how
ever. are incidents of the coinage q
silver. There can be no general sus
: pension of specie payments by th
banks: the rate of interest has bee
lowered, and the recent depression il
business has been less disastrous thai
it otherwise would have been. On tn
other hand. all evidences of the right
of property, representing specifi
sums in dollars, have been diminished
in value. The debtor class has gained
the creditor class has lost, and thus al
act of injury has been committed b!
the government when controlling
public necessity did not exist.
Two propositions of relief or rem
cdv are submitted TO the country
First. the suspension of the coinage o
silver. The immediate effect of thi
measure would be 10 further de
lpreciaic the value OF silver, and con
sequeniiy To work serious injury {,
the value of the mining interests o
the country; and it would also impos'
Il fresh burden upon the debtor class, ;
class not AT all benefited by the de
preciatiom in silver. or not benefited
10 the same extent. Thus anew wrong
wonld be rerpetra'ed The second
suggestion l., that the government
-hould receive silver bullion and issu,
cert ticates based either upon il:
weight or upon its present market
value. In either case the certificates
not bearing interest. would enter into
the circulation of the country. aug
mcnt its volume. create and foster un.