The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-13
THE SILVER QUESTION.

any other subject that is likely to be brought
before the present Congress. There are all
sorts of notions and theories about silver and
| what to do with it. Cranks in finance are as
numerous, noisy and dangerous as quacks in
medicine. Finance, national or individual, is
not matter of theory, but is a question of
| plain, practical common sense, and all the
| fine-spun theories of congressman cannot and
| will not make prosperous times, except as
they may be consistent with the laws of
trade, founded by trade itself upon the con-
trolling power of supply and demand Money,
| whether it be represented by coin or paper, is
a measure of values. Gold and silver have
been and are the metal currencies of the world;
all paper issues by governments or banks
are founded on the faith of redemption on de-
| mand in one or the other of these metal cur
rencies. A short statement of facts in regard
| in arriving at just conclusion as to what
should be done by the present Congress with
the silver dollar. By the act of 1902 the sill
yer dollar was made the unit of value in the
United States by law, as it was and had been,
| in fact, the unit of value in both North and
| South America, as well as in half the other
| countries Of the civilized world. Generations
had come and gone in which the silver
| dollar was almost the world over,
&c
Until after the discovery Of gold in Califor
MIA there was little appreciable difference in
this country between gold and silver, nor, in
fact, ia any other part of the world, except in
China and India, in which countries silver was
largely in demand over gold. After the dis
covery of gold in California and thereafter in
Australia the relative values of the two met
ais, as then coined, parted. The production
of gold was so great as to relatively enhance
the value Of silver, and even at the United
States mint, at Philadelphia, the silver dollar
was worth premium of s per cent over the
gold dollar coined at the same mint the same
day. After time the gold supply fell off,
and the two metals again joined company.
Then the Nevada mines were discovered. and
silver was produced by the ton, necessarily
causing a decline in the intrinsic value of that
metal, as compared not only with other
values, but of the value as compared with its
own value at previous date
Then came the time when the government
of the United States was compelled, after the
period Of suspension during the War of the
Rebellion, to resume specie payment. The
government had issued greenbacks and frac
tional currency, of which there was then out
standing some four hundred million dollars,
and the national banks had a circulation out
standing, redeemable in coin or greenbacks
of about as much. The resumption act was
passed in 1875, to take effect Jan. l, 1879, and
the United States, in the meantime, was try
ing to refund the and per cent. bonds in
long loans at lower rate Of in
terest. Therefore, when the day
Of resumption Of specie payment
was fixed at Jan. l, 1879. the
United States was in the market to refund
its bonds, and the national banks were the
holders Of the United States bonds which they
| must dispose of to furnish either gold or
greenbacks in which to redeem their notes.
In this juncture the coinage of silver dollars
| was suggested as an additional measure Of re-
demption. The compulsory coinage bill was
passed in 1878, and it we'll answered its pur-
pose. 1t enabled the United States and the
national banks to prepare and be ready for re-
sumption at the day fixed by law. This coin
age bill was passed Feb. %, 1878, and thence
on there has been compulsory coinage of
| not less than two million silver dollars
month.
Certainly, it was not intended by the most
| fanatical silver man that this coinage of two
million dollars, or to the extent of four
millions per month, should be perpetual
This is nonsense, and worse; it is suicide. A
| little consideration will demonstrate the fatal
| ity of this policy. The United States now
recognizes six several issues of coin and cur
rency, to-wit: gold, silver, greenbacks, national
bank notes, gold certificates and silver certif-
Gates, not to speak of the subsidiary coinage.
In only one case is there any compulsion; that
| is, the issue of at least two million
| 412 IL grain silver dollars each month.
| This compulsory coinage has gone
along until it has become great
danger. The silver dollar is legal tender
in this country, and unless this law is changed
it will continue to be not only alegal-tender,
but, in little time, the only legal tender left