The state chronicle. [volume] (Raleigh, N.C.) 1883-1893, 1886-02-04

millions Of dollars payable in gold which
She eXacted Of France, thought it "a good
opportunity TO get rid Of her silver coin,
estimated at 40 millions OF dollars, and
further, to InJure her enemy France, by
throwing upon the markets Of Europe that
amount of silver and thus dcluge France
with the demOnetized German coin In
France and other States Of the Latin
Union Belgium, Italy. Switzerland and
Greece al this period, 1913, there was free
coinage and silver equally with gold was
q full legal tender. As a matter Of self
protection, the above states constituting
the Latin Union (about 1876 suspended
temporarily free coinage. When therefore
the re coinage III limited quantities mot
less than two millions per month"; Of the
full tender silver dollar Of 1892, to-wit:
81. % grains pure silver, H.. 30 grains
standard silver, Was enacted by the act Of
1873, the free coinage Of silver was sus-
pended in all the chief commercial nations
of the world; and consequent to its de
monitZation by Germany in 1878, supple
mcnted by similar action on the part of
the scandinavian kingdoms, Denmark,
Sweden, and Norway III 1878 1874, and
by the | nited States IN 1873; by the sale
Of Il large part Of her silver by Germany
in London, stated ut 40 millions, and to
the suspension tia 1876 of the free coin
age of silver by the states of France, Bel
gum, Switzerland, Italy and Greece, the
market price of silver till It's bullion value
as compared with gold, had fallen IN 1873,
and has continued to fall up to the present
time, to wit: Whereas i'll 1s93 the silver
dollar of 412 so grains standard silver was
of more value than the gold dollar Of
%. 50 grains standard gold, since 40 50
grains Of standard silver was then the
equivalent Of a gold dollar; in 1878 when
Congress enacted the rccoinagc Of the
standard silver dollar, it has fallen III
market price, so that it required 1862 90
grains standard silver to equal the gold
doll4. and to-day IttaknS about 1913 grains
to equal III market value a gold dollar.
Has the Purchasing Power of Silver De-
ciined
But though silver has deprecated since
1873 compared with gold, i. e., its bullion
value has deprecated, as above stated,
has It's purchasing value declined Let
us see.
In 1873 flour cost $40 per barrel in
1885 50, %; in 1878 corn meal cost 81. -
per bushel, in 1885 $3. 10; in 1873 oats cost
: cents per bushel, in 1880 80 cents; in
1873 wheat cost 81 20 per bushcl, in 1885
81 05; in 1878 corn cost 80 cents per buShel,
in 1888, - cents; in 1878 cetton cost II
cents per pound, in 1855 8 $40 cents; in
1878 American pig iron cost N2l 90 per
ton, in 1885 $3.50; IN 1873 rosin cost
So 10 per barrel, in 1888 $5f.S2!; in 1873
pork cost $50. 80 per barrel, in 1885 so. 90;
in 1878 salt cost sl.2a per sack, in 1880
80 cents; in 1878 sugar cost 105 cents per
pound, in 1885 Il cents in 1913 wool cost
Sc cents per pound, i'll 1885, 36 cents.
The above epitOme shows that prices
have fallen on an average p per cent. III
the past II years, that Is, a gold dollar can
buy to-day % per cent. more on an aver
age, of all the staple commodities OF life
that it could in 1878. But silver has de
preciated only some 20 per cent. as com
pared with gold, In other words q silver
dollar at its bullion value can buy more
of the staple commodities of lite to-day
than il could in 1873. OF course the pur-
chasing power Of the legal silver dollar is
as great as the gold dollar, and will buy
25 per cent. more of the above articles to-
day than in 1878. Why then demonitizo
| it, or stop the further coinage of the silver
dollar? Because, say the gold monome-
! talistS, The obligations Of the govern
ment must be paid in gold, the continued
coinage Of the legal tender silver dollar
Will gradually displace gold; the latter
will be boarded, contraction Of the cir
culating medium Will result in consequence
!
/ industrial and commercial depression. The
wages Of labor will go lower still, and the
finances Of the country will be reduced
to silver basis, placing the United States
in the list of second class countries, such as
British India, Australia, Russia, China
| and Mexico, where silver IS the standard
of value" In answer to the above it may
be stated: In 1868 the debt of the United
States was about $1,000, 900, 600. There
was then no gold or silver in circulation
| Specie payments suspended in 1862 wert
| not resumed until Jan. 1879. Tho bonds
that this debt was funded IN, We're pur
chased by United States notes (greenbackS
| and National Bank notes. They were a
that period worth only from 40 to 80 cent
on the dollar in coin, silver or gold; 50 the
| purchasers Of these bonds only paid Wha
was then equivalent to 81, 300, 000, 600 il
gold or silver. lis true the financial ac
ton Of the United States has been baseC
on the theory that their bonds and inter
| est thereon are payable in gold, and the,
| have ALWAYS been paid in gold as they ma
tured and the interest as well. But Wha
says the law! The greenbacks had printed
on their backs. This note shall be recelv
able at its face value for all debts, publi
and private, except interest on the publi
debt and customs due. 1t was in tS6
continued, that these bonds so purChdSe(
could legally and should lie paid at thei
maturity in greenbacks. But in 1869, b
a strictly party vote, every Democrat yO
against it, an act was passed, declaring
that the principal of these bonds shoul
be paid in coin The new bonds in whc
the debt of the United States was funde
at a lower rate of interest, and now con
stituting the funded debt of the mite
States have printed on each of them a
part Of its obligation THAT it shall be pal
in coin of the standard value prescribe
by law on the 14th July, 1870" The pres
ent gold and silver dollar are both Of th
standard value prescribed by said act {
1870 and were then as now equally fu
legal tender 1t is thus too plain for al
gument that the present outstanding fur
ded debt of the United States say 81, 200
900, 900 is payable at tbs option OF til
government in standard silver dollars.
? Again: If the continued coinage of th
} silver dollar would cause gold to be hoaro
ed or exported this would contract tn
circulating medium disastrously, for thel
, are $50 million Of gold dollars and 0nl
215 million of silver dollars in the Unite
States. But does our financial history, OF
5 experience for the past few years justif
such apprehensions ''When the ba
! ance of trade is against this country, COL
2 will be at premium equal to the diffe
ence between gold and silver in the LoI
don bullion Market but it can't in IL
t nature things, be so until then, as Ion
5 as silver is a full legal tender equally wit
gold The balance of trade has for yea