The Somerset reporter., 1886-01-27
The Silver Question.

y
The leading question before Congress
and the country at the present time is that
relating to the coinage of silver dollars.
1t is apparent that majority in Congress
is In favor of the present law which re-
auires the Government to purchase and
coin SO OO0, 900 worth of silver bullion
each month. Since this law has been In
force about 900, O00, 900 of silver dollars
have been coined, of which about no.
900 900 are in the vaults of the United
States Treasury against which less than
S95. 00O, 900 of silver certificates are out
standing. That Is, If these silver eertifi-
Gates should all he returned TO the Treas
ury they would be redeemed by oo,ooo'ooo
of silver dollars, leaving over 71.ooo'too
of these dollars in the Treasury, the prop
erty of the Government AT the present
time, although the Treasury officials are
making every proper effort to get the Sill
yer dollars into circulation, the store OF
silver dollars is increasing at the rate OF
about 1000, 900 month. In other words
at the present time, the Government Is
purchasing $4,000, 900 worth of silver
bullion a month coming 1t into dollars
and piling them away. Thus, the Gov-
eminent pays 1924 100000 year to con-
tinuc the operation of the silver coinage
law and practically gets in return lot OF
silver dollars which it cannot use.
Such, in brief, is the silver situation
The friends of the present law MAINTAIN
that the silver is needed and that the re-
neal of the law is sought by capitalists
and bondholders who desire to get the
commercial world on pure gold basis
which, they claim would be great wrong
and burden upon the debtor class. 1he
opponents Of the law who have any IN
fiuence deny that they are in favor OF
demonctizng silver but on the contrary
they claim that it is their desire to put IL
on an equal basis with gold by establish
ing ratio for the coinage of both metals
by international action. They also main
tain that so long as the United States at
heres to the present policy, international
action cannot be secured because Ger
many and England will hope to see the
United State become silver basis coun-
try and thus relieve them of their surplus
silver The opponents of the present
law further maintain that European ma
tions will be fastened to agree to inter-
national actions for the restoration OF
silver to full money power, by the sus-
pension of coinage in this country.
The real danger of a continuation Of
the coinage of silver is that when the
volume of such dollars becomes larger
andsthere comes foreign demand upon
this country for gold as there is likely to
be soon because of the falling OIL III tbs
foreign demand for our wheat and other
exports, gold will command premium
and thus cease to be money. As soon rs
tseld should command one or two per
cent in the market, 1t would cease to be
money and would become commodity In
which to traffic. This would cause
great contraction in the volume of our
currency resulting in financial confusion
IL not in panic. Labor would be paid in
the silver dollar but the prices of all COM
moditics affected by foreign demand
would be made in god. If gold should
command premium of 10 per cent, the
bushel of wheat which would cost s in
gold would cost 81. 10 In silver. Now
one is as good rs the other and the man
who Is paid in silver dollars or gold dol
lars or greenbacks or national bank notes,
can purchase as much with one as with
the other. If gold should command 10
per cent premium, the man receiving 81 u
day would be paid two silver dollars or
two bank bills redeemable in silver which
would in fact, be worth but Sl.80 to pur-
chase bread and clothing.
Having no silver mines, people in this
vicinity who live by their labor or trade,
can have no earthly reason to favor silver
coinage when it may involve so much in
jury to them.