The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1885-12-12

condition of our currency and coinage can
claim your attention.
Since February, 1873, the Government has,
under the compulsory provisions of law, pulr.
chased silver bullion and coined the same at
the rate of more than two millions of dollafs
every month. By this process up to the pres
ent date 2l5, 759, ALL silver dollars have been
coined.
A reasonable appreciation of delegation
of power to the General Government would
limit its exercise without express restrictive
words TO the peoples needs and the require
ments of the public welfare.
Tpon this theory the authority to ''coin
money" given TO Congress by the Constltli-
ton, if il permits the purchase by the Gov
ernment of bullion for coinage in any event,
does not Justify snch purchase and coinage to
an extent beyond the amount needed Tor
sufficient circulating medium.
The desire 10 utilize the silver product or
the country should not lead to amisuse or the
preversion of this power.
The necessity for such an addition to the
silver currency of the nation as is compelled
by the silvcr-coinage act IS -negatiyed by the
fact that up to the present time only aoouf
fifty millions of silver dollars coined
have actually found their way into circula-
ton, leaving more than one hundred ana
sixty-five millions in the possession of thu
government. the custody of which has en-
tailed considerable expense for the con-
Struction of vaults for its deposit. Against
this latter amount there are outstanding Sill
yer certificates amounting to about ninety-
three millions of dollars.
Every month two millions of gold in the
public Treasury are paid out for two millions
or more of silver dollars, TO be added to the
idle mass already accumulated.
If continued long enough, this operation
will result in the substitution Of silver for all
the gold the Government owns applicable 10
its general purposes. 1t Will not 90 10 rely
upon the customs receipts of the Government
to make good this drain of gold, because the
silver thus coined having been made legal
tender for all debts and dues public and
private at times during the last SIX months
SO per cent. of the receipts Tor dllleS nave
been in silver or silver certificates, While the
average within that period has been 20 per
cent.
The proportion of silver and its certificates
received by the Government will probably
increase as time goes on, for The reason that
the nearer the period approaches when 1t VIII
be obliged to offer silver in payment OF U.s.
obligations, the greater Involvement there
will be to hoard gold against depreciation IN
the value of silver or for the purpose OF spec
ulating. This boarding of gold has already
begun.
When the time comes that gold has been
Withdrawn from circulatiyn, then will be al-
parent the difference between the real value
ofthe silver dollar and dollar in gold, and
the two coins will part company. cold, stlll
the standard of value, and necessary IN our
dealings with other countries, will be at
premium over silver banks which have sub
stituted gold for the deposits of their Gus
toners may pay them with silver boughe
with such gold, thus making. q hand
some profit; rich spectators will sell their
boarded gold to their neighbors who need
it TO iquidate their foreign debts, at
ruinous premiums over silver, and the
laboring men and women of the land, most
defenseless of all, will find that the dollar re-
ceiYed for the wage of their toll has sadly
shrunk in its purchasing power. 1t may be
said that the latter result will be but temper
ary and that ultimately the price OF labor
will be adjusted to the change; but even II
this takes place the wage work er cannot pos
sibly gain, but must inevitably lose, since
the price he is compelled to pay for his llv-
ing will not only be measured in coin heay-
lily deprecated and tiuctuating and uncertain
in its value, but this uncertainty i'll the value
of the purchasing medium will be made the
pretext for an advance in prices beyond thas
iustiged by actual depreciation.
The words uttered in 1884 by Daniel Web
ster in the Senate of the United States are
true to-day: ''The very man of all others
rency, and who suffers most by lmischievous
legislation in money matters, is the man who
earns his daily bread by his daily tot"
The most distinguished advocate OF BIZ
metalism, discussing our silver coinage, mas
lately written:
NO American citizens hand has yet felt
the sensation of cheaRness, either i'll receiving
or expanding the silver-act dollars.
And those who live by labor or legitimate
trade never feel that sensation of cheapness.
However plenty silver dollars may become,
they will not be distributed as gifts among
the people: and if the laboring man should
receive four deprecated dollars where he now
receives but two, he will pay in the deprecl'
ated coin more than double the price he now,
{R ifSs. iof al 'H' He'esS''l'' anu ''
Those who do not fear any disastrous con-
sequences arising from the continued COM
pulsory coinage of silver as now directed by
Jaw, and who suppose that the addition 10
the currency of the country intended as ltS
result. will be public benefit are reminded
that history demonstrates that the point ii
easily reached IN the attempt to float al the
same time two sorts of money OF different
excellence, when the better will cease to be
in general circulation. The boarding OF gold,
which has already taken place indicates thal
we shall not escape the usual experience III
such cases. So if this silver coinage be con-
tnued we may reasonably expect that gold
and its equivalent will abandon the Ield oi
circulation to silver alone. This OF course,
must produce q severe contractlon OF ouL
circulating medium, instead OF ADDING 70 lC'
It will not be disputed that any attempt on
the part of the Government to cause the cir
culation of silver dollars worth eighty cents,
side by side with gold dollars worth one nuns
dred cents, even within the limit that leglsla'
ton does not run counter 10 the laws OF uiuei
to be successful must be seconded by the con-
tidence of the people that both coins Will re-
tain the same purchasing power and be inter-
chanpeahle at will. A special effort has been
made bv the Secretary of the Treasury to in
crease the amount of our silver coin III circu-
lation: bat the fact that large share OF the
limited amount thus put out has soon returned
To the public Treasury in payment OF duties,
leads to the belief that the people do not now
desire to keep it in hand and this, with the
evident disposition to hoard gold, gives rise
To the suspicion that there already exists
lack of confidence among the people touch-
ing our financial processes. Ihere IS GER
tainly not enough silver now In clrculatlon 10
cause uneasines, and the whole amount
coined and now on hand might, after time,
he absorbed by the people without apprehen-
sion but it is the ceaseless stream that
threatens to overflow the land which causes
fear and uncertainty.
What has been thus far submitted upon
this subject relates almost entirely to consid-
erations of home nature, unconnected with
the bearing which the policies of other ma
tions have Upon the question. But it is per
fectiy apparetf that a line of action in regard
to our currency cannot wisely be settled upon
or persisted in, without considering the attl-
tude on the subject of other countries with
whom we maintain intercourse through conf
merce, trade and troyel. An acknowledge
ment of this fact is foundin the act by virtue
of which our silver is compHlsoriiy coined.
1t provides that .'the President shall invite
the governments of the countries composing
the Latin Univn, so called and of sSSatleStt4i4er
European nations as he may deem advisable,
to join the United States in q conference to
adopt q common ratio between gold and
silver for the purpose of establishing inter-
notionally the use of bimetaIlic money and
securing fxity of relative value between these