The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-12-06

tiun of our goVetnm Neen power
fhI infuencve in enabl. . mainthn a
depreCinted and conss - depreclating
dollar nj par with our god coins, far be-
yond the limit which WIS believed possible
n few wears ago. But the fact must not be
overlooked that il is only IN domestic trade
thnt this parity has been retained; IN for
eipn trade the silver dollar possesses only
bullion value.
DEPRECIATION or SILVER.
Referrino 10 the causes which he alleges
have caused the depreciation oftthe price OF
silver, the secretary says The legislation
of Germany in lS7l-'73, immediately follow
inc the Franco-Germ8n war, adopting the
single pold standard for that empire, with
drawing rapidly from circulation SILVER
coins which prior 10 that time had formed
almost exclusively the circulating medium
and throwing large quantities OF SILVER al
short and uncertain intervals upon the
market. was the initial fuctor of the great
monetary disturbance which destroyed the
lppal ratio between gold and silver that had
existed for half century, France ana her
monetary allies. Belgium, Switzerland
italy, and Greece. alarmed at the immense
stock of German silver which WIS sure TO
flow into their open mints, immediately re-
stricted. and soon afterward closed their
mints 10 the coinage of full legal tender
silver pieces. This action only hastened
the catastrophe. -,
The other nations of Europe were not
slow to follow the example of Germany ana
France In 1s73-'75 Denmark, Norway ana
Sweden ndopted the single gold standard,
making silver subsidiary. In ls75 Holland
closed her mints 10 the coinage
of silver In 1876 Russia suspended
the coinage of silver except for use III the
Chinese trade. In 1879 Austria Hungary
ceased 10 coin silver for individuals, except
a trade coin known as the Levaht thaler.
The result has been, that while prior TO
1871 England and Portugal were the only
nations Of Europe wldch excluded silver as
full legal tender money; since the monetary
disturbance of 1873 u not mint OF Europe
has been open 20 the coinage OF silver Tor
individuals.
Starting in 1878 with no stock OF silver
dollars, this country, standing alone OF all
important nations. in its efforts TO restore
the former equilibrium between gold ana
silver. has, in the brief period OF eleven
yenrs. added to It's stock of full legal tender
money 33,63s,00l dollars of deprecated
and steadily depreciating metal. what has
been the effect upon the price OF siiVerf
The value Of an ounce OF hne silver, when
on March l, 1873, was l.20, was on Novem-
ber l, 1889. 80 CENTS n decline III eleven years
of over ~ per cent.
In 1873, the date M which purchase Of sill
ver for subsidiary coinage commenced, the
bullion value of the silver dollar, contain
ing 81 - grains Of pure silver, was about
IL cents more than the old gold dollar; on
March /. 1878. the date of the commence.
ment of purchases for the silver dollar com
age, il was S0.g3. while to-day its bullion
value is ~ cents in gold. In other words,
there has been fall of over y per cent. in
the value OF silver as compared with gold III
the last sixteen years, and of over ~ per
cent since We commenced purchases IN 1873.
The downward movement of silver has been
continuous, and with uniformly accelerated
velocity.
While the demand for silver has been
cut of by the closing of the minta ~ Eu-
rope tu its coinage, and the usunl demand
upon the part of India reduced by Inc sale
oi council bills. the annual product Of sil-
yer has largely increased. In view of these
facts, while il is evident that the primary
cause of the decline in the price 1T silver
was adverse legislation by t.c principal
countries of Europe. virtually os,raclsing
silver, il is also true that the fall has been
hastened by an increased supply falling
upon market for which there WAS re-
duced demand.
HIS FINAL coXCI UsIoSs.
II is unquestionably true that, in this
country, public sentiment and commercial
and industrial necessity demand the Joint
use of both metals as money. The utiliza-
tion of both metals as acirculating medium
and as n basis for paper currency is believed
TO be essential go our national prosperity.
But the unprecedented change III the market
value Of the two metals within the last six
teen Year,. and the steady depreciation of
silver in the face of the large purchases on
the part of this government. arouse grave
apprehensions and cause great difficulties.
Referring 10 the present policy of pur-
chasing aud coming $2,0OO,0O worth of sill
yer per month, the secretary says II Is ap-
proved by no one. As to the proposition
10 coin S4,00O,0OO month he snys:
"The secretary Of the treasury, in whom is
lodged the discretionary power 10 purchase
and coin xi,OOO,O01 worth of silver per
month, concurs in the opinion of all his
predecessors since 1873, that there il limit
beyond which il is not safe TO 90 in the
coinage of full legal tender dollars. the
nominal value of which is far in excess Uf
the bullion value, and he has therefore con.
fined his purchases TO the amount required
by law"
As TO the free coinage of silver the secre-
tary saws: at is difficult to conceive of
method by which more swift and disls-
trous contraction Of our currency could be
produced. II is within the memory of all
that for several years prior TO 1879 gold was
not in circulation M money, but, when re-
sumption took place, the hidden treasures,
which had so long been banished from ac-
tunl use, at once flowed into the channels
oi business and produced the most substan-
tial aud satisfactory conditions of prosper
lty. The free coinage OF silver dollars, un-
der existing circumstances. would be 10 re-
verse the results achieved by resumption"
Mr.. Window then gives his own plan for
the issue of treasury notes, hased on depos-
ITS OF silver bullion, as given at length in
The lNDEPHSDENr yesterday.