Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1886-01-22
AS TO SILVER.

In the huge volume of discussion upo
the silver question there is much that
irrelevant. The matter which is OF VII
Importance is, not how the present relativ
situation Of the two metals came about, but
what is best to be done. v
The silver act of 1873 privides that ever
month the treasury shall purchase not less
than two nor more than four millions dol
lars worth Of silver bullion, to be employed
in the coinage of standard dollars of 412t
grains fine, the ratio of gold being as one to
sixteen. The silver dollar is a legal tender,
the same as the gold dollar. The amount of
silver in the standard dollar was about 80
cents worth when the act was passed.
There has been steady and progressive
decline In the value of silver ever since, and
now the bullion in the standard dollar is
worth fraction over 70 cents.
This change in relative value is attributed
by the mining interests Of the West, who
have silver to sell, to an appreciation of
gold, due to the decentralization of silver by
European nations; by others, to the fact that
the annual product of silver is greater than
the worlds need tor coinage and the arts
and, as when we have too large crop of
wheat the price falls, 80 does silver fall be-
cause the supply is greater than the demand.
There is truth in both these statements but
no way Of solving the difficulty for the
United States, as we cannot make the mine
owners limit production, nor compel Euro.
pean nations to temonetize silver.
ghaasazs real y three parties te<fs: So
,royersy: Fms; the silvsy6 II ;at
West with large number on saherents
who believe in "cheap" dollar and the in
definite expansion of the currency. They
are, in fact silver monometallsts-for to
put their theories into practice would drive
gold from the country and reduce the dollar
to really but 70 cents in purchasing power.
Second, the gold monometallists of the
East, who would, il they could, demonetize
silver in this country, and use it only for
"smal change" which never contains silver
to the amount of its full face value.
Third, those who believe in bimetalism-
in the use of both gold and silver coins as
legal tenders, and in maintaining their rela-
tive values as nearly equal as possible, so
that there shall be no danger of the financial
disaster that would follow should gold go to
a premium, and values be suddenly changed
to 79-cent basis. We believe that the great
mass of the people of the United States be-
long to this class; but unfortunately there
is great diversity of opinion, owing to i'm
perfect knowledge, in their ranks, and many
Of them favor the schemes of the first class
the silver iahonists-because they do not
understand the matter.
The two extreme parties-the gold and
the silver monometallists-are working for
selfish ends The silver men have silver to
sell; they want free coinage in that metal
which means that they shall be allowed to
take their silver bullion to the mint, and
have 70 cents worth of it coined into stand.
ard dollars, thus making snug profit The
gold monometalists are working for the
decentralization of silver; but there is no
danger of their accomplishing this end. The
real danger is from silver imitation.
Under the silver law, the Secretary of the
Treasury is compelled to buy not less than
$2,0000 900 worth of silver bullion, at market
rates, and have it coined into standard dol
lars every month. This amount of silver
makes of course more than two millions
of silver dollars-nearly two millions and
a-half, In fact. II is law of trade that
where two different metals circulate as
! money the cheaper metal will drive out
the other, if the amount exceeds certain
ratio to the latter The silver dollar, al.
though intrinsically worth about 70 cents
will yet buy just as much as the gold dol
lar The danger is, that this equality in
purchasing power will not be maintained
There are symptoms Of a separation. Some
persons are already preparing for the crash
they deem inevitable, by turning the cash
: into real estate, or buying longtime Lon
don bills of exchange, which are payable il
gold. Landlords In the North are inserting
clauses in their leases that the rent shall be
paid in gold.
| Up to an unknown limit, which itself de
ponds upon the condition of trade and th,
: confidence of the people, our two dollar
will continue TO circulate as of equal value
If the amount of silver in proportion to golC
increases beyond this limit, the crash will
: come. Gold will become an article of mer
chandise, as 1t was during and after tn,
war, up TO 1878. The purchasing power o
the dollar will then be the value of the sill
yer dollar, now 70 cents. The prices o
real estate, food, clothing
be increased 81 per cent Distress will fol
low, financial ruin to many, and the hard
est blow will fall on the wage-earners 70
wages are always the last thing to rise, an,
they will go up slowly, because the labo
market is overstocked The workingmal
!, will have to pay 81 per cent. more for every
thing he buys, and his pay will be in 4
cent dollars.
All intelligent bimetallists believe tina
this danger would be averted by stoppin
the compulsory coinage of the staadar,
dollar. They do not favor its demonetiza
ton, but merely the stoppage of the en-
! forced coinage of over two millions month
= The silver intlationists oppose this of course
! We believe it should be done, and at once
u We believuiu 1iuuu6uiiu,u - -
: imitation,