, 1886-01-07
SILVER COINAGE.
The Senate Debates the Cues
ton of its Suspension.
Senator Edmunds Defends the
Mormon Bill.
Budget Of Bills introduced in
the House.
-FoRTY-NINTH CONGRESS.
senate.

tom duties ia coin and the application Of
that coin to the purposes Of the sinking
fund, etc. Mr.. Gray said he would vote
for it, but tor reasons very different from
those which actuated Mr.. Beck and those
who thought with HIM. The act of 1878,
Senator GRAY said, was tentative; it was
based on the idea that silver would short
ly reach an international ratio with gold,
and il was the hope of the attainment of
this international ratio that actuated many
thoughtful men in voting for that bill.
This hope had been disappointed, the
object of the bill had been defeated and
the dollar worth ninty-two cents in 1878,
was now worth less than eighty cents.
A passionate invectise on the part of sill
yer men would not enhance the value Of
the silver dollar. The actions and recon-
~mendations of the president and secretary
of the treasury on the silver question were
right. He Gray, was hot here to defend
any one; but economic laws were always
the same. He was neither a b~ondholder
nor the son of a %bondholder, but he was
for paying the bondholder in honest
money. The true issue in the question
was whether the true relation Of gold
and silver could be reached by the contin-
uance of the present plan of silver coin
age. He asserted this could not be done.
Silver coinage had served a useful pur-
pose as subsidiary coin, but no
country desired a basis of silver
coin alone, and if gold were sup
planted by silver, we would have a
silver basis. The gold standard had kept
US in easy relations with the rest Of the
world. Bi-metalism could not be reached
by any n country alone. France had,
long ago, stopped her silver coinage, and
should we, by continuing u present
course, drive out of the country several
hundred millions Of gold coin2 If we so
we would have contraction indeed. The
act of 1878 having failed to raise the value
of silver. a persistence in our present plan
of silver coinage would bring us to a silver
standard. We would be descending to
the basis of an eighty cent dollar, and
thus the government of the United States
would in fact be scaling its own debt. This
would be a public misfortune. as evidenc-
ing a condition of public dishonesty.
which, to say the least, was equally repre-
hensible with individual dishonesty. Those
who favored silver coinage were not, in
his opinion. the solid. conservative bust
ness men, but those Of a speculative turn.
He desired to see silver in circulation con-
currently with gold, but the failure of the
best efforts 10 get it into that condition
was sufficient proof that our continued
coinage would be of no avail in that direc-
ton. We were all embarked on the same
great voyage-debtor and creditor-one
tate awaited us all. We should therefore
honestly endeavor to adjust our differences
in order that the interests of all our people
may be honestly and fairly advanced.
Senator Mcpherson said if coinage we're
now suspended, silver might be got to a
proper relation with gold, and in the opin-
ion Of the best authorities in the world,
we had now got to a point in silver coin
age beyond which it was dangerous for US
TO go. The need of currency was a need
created not by law. but business. When
ever the treasury could no longer sustain
a gold basis, then the public would have
to take care of the silver. The silver dol
lars had thus far remained at par with
gold because they had but a limited use
and were limited in number within the
limit of the public needs, but the Ores
ham law still held good after three CEN
turtles Of observation, namely. that bad
money drives out good money All his
tory taught that with a ~huctuating value
as ours was tending to become, specula-
ton was encouraged, and a none
tary ruin FASTENED. The loss would
always fall on the producers of
our country. as the importers would pro-
tect themselves. Referring to the effect
of silver in India, Mr.. Mcpherson ex-
claimed: God forbid that the American
laborer should ever come to a condition
like that of the laborer of India" The
blow aimed by silver men at "bloated
bondholders," he insisted, would strike
with tenfold force on the head Of the
laborcr. The government had permitted
its financial agent, Jay Cooke, to adver-
tise that the interest on bonds was paya-
bic in gold. (Mr. Mcpherson produced
such advertisements.) Senator Beck in
quired how much the purchasers of bonds
had paid for them. Mr.. Mcpherson said
that made no difference. The govern
ment having held out such representa-
tons could not now ignore them; it could
not play fast and loose with It's creditors.
Reference by Mr.. MCPHERSON TO an under
standing that the bonds were to be paid
in gold brought from Messrs. Morgan,
Harris and Beck, simultaneously. an en-
ergetic insistance that payment in coin
and not gold" was the understanding.
To show that business was already beeom-
ing alarmed at our course with regard to
silver. Senator Mcpherson read a letter
FROM the manager of the Liverpool, Lon
don snd Globe Insurance company, stat
ing that the company, in view Of the
groat nnoartainfv With regard IN coinage.