The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-12-05
TEE SILVER QUESTION
The Secretary OF the Treasury Dis
cusses IL at Consid cradle Length.

cusSes IL at Consid cradle Length.
WASHINGTON, Dec THE Secretary of
the Urea sury, in his annual report, dis
cusses ri considerable length the silver
question. Among other things he saws:
,rhe continued coinage of the silver dollar. at
a cousf antly increasing monthly quota is a
disturbing element in the otherwise excellent
financial condition OF the country. and posi-
i've hindrance to any international agreement
Looking to the free coinage of both mstals at
Mandatory purchases by the government of
stated quantities OF silver. and mandatory
coinage OF the same into full legal-tender dol
lars. are an unprecedented anomaly and have
,roved futile. not only in restoring the value of
Silver, but even IN staying the downward price
III that metal.
since the passage of the act of Feb. 2s. 1873
10 Nov. /, 1889, there have been purchased
$40 $50 4l6l1 standard ounces of silver. at cost
If s2s6 $50 e33. "a, from which there have been
coined 81. ,001 standard silver dollars
There were in circulation on Nov of the
present year 60 09S.4s0 silver dollars, less than
q Der capita. the remainder. 2S3, $50 52l, being
stored away in government vaults of which
s277 ,944 were covered by outstanding certifi-
Gates.
Treasury Department 10 put in circulation the
dollars coined under this law. They have been
shipped, upon demand, tr ON the minis aud
slibtreasures, free of charge, to the nearest
and the most distant localities in the United
States only to find their way back into treasury
ysnlts in payment of government dues and
taxes Surely the stock of these dollars which
can perform any useful function as a circu-
lating medium must soon be reached, il it has
not been already, and the further coinage and
storage of them will then become a waste of
nublic money and a burden upon the treasury
But the fact must not be overlooked that it is
onIy in domestic trade that this parity has been
retained; in foreign trade the silver dollar
Possesses only a bullion value.
Starting IN 1878 with no stock of silver dollars
this country, standing alone of all important
nations in its efforts to restore the former
aoulibrum between gold and silver, has, in the
of full legal-tender money S343, G3S, 001 OF a
deprecated aud steadily depreciating metal
What has been the effect upon the price of
silver?
March /, 1873, was 81 20, was, on Nov. l, 1889.
IS cents, a decline in eleven years of over 20
per cent.
SOLUTIONS WHICH HAVE BEEN PROPOSED.
Various solutions of this problem have been
proposed, among which the following may be
mentioned:
/ An international agreement fixing a ratio
between silver and gold. and opening the mints
Of the leading nations of the world TO the free
coinage of both metals, at the ratio so estab-
lshed.
la such concert of action. If it could be Sc.
cured is the final and satisfactory solution of
the silver problem. The policy of promoting it
was instituted by the United States in 1873. The
and was fully set forth and justified in two in
ternational conferences. Unfortunately, some
of the most powerful nations are not yet ready
TO act Public sentiment, even in those coun-
tries, seem to be steadily moving in that direc-
ton, but thus far no substantial results have
been achieved.
?. The present policy of.purchasing and coin
ing $4,000, 900 worth of silver per month.
This is now approved by nobody.
The socalled silver men oppose it, because 1t
does not go far enough to meet their wishes;
opponents of silver coinage denounce it, be-
cause they deem it unwiSe and dangerous to in
crease the issue of a coin whose nominal value
is far in excess of its bullion value.
3. Increased purchases and coinage of silver
10 the maximum of "a, 1000 900 worth per month,
now authorized by law.
This policy is proposed by many as a means
Of Increasing our circulation, which they assert
is deficient by reason of the retirement of na-
tional bank notes; and also as means of en-
HANGING the value Of silver by hsorbing the
worlds surplus product Both of these objects
may be far better secured by another method
which possesses all the advantages of increased
coinage, and involves none of its dangers
4 Free coinage of standard silver dollars.
This may be called the heroic remedy. To
open our mints to free coinage for depoSitors,
when 1925 grains of standard silver are worth
II the markets of the world only ~ cents,
would be to say to everybody, at home and
abroad, bring us ~ cents worth Of silver, and
by the magic of our stamps and dies we will
transmute it into 100 cents.
Free coinage of silver, while it is an indis-
pensable condition of permanent restoration,
were it bestowed by this country at O time when
the metal value of the silver In the full legal
tender dollar is 29 cents less than its nominal
value, would simply have the effect, by opening
the mints to the free coinage of silver into legal
dollars to close them for the free coinage of
gold. No doubt our minis would find ample
employment. If they were now open to the
free coinage of silver, we should not need them
for the coinage of gold, because gold would
command premium and become commodity
TO be boarded or shipped abroad, and not
coin for circulation at home 1t would stop the
Simultaneous circulation of gold and silver.
5. The coinage Of silver dollars containing
dollars worth of bullion.
This has been with many a favorite solution
OF the problem under discussion. They say I'VE
have no objection to the coinage of silver if you
will only make an honest dollar, by putting into
1t enough silver to make it equal in value to a
gold dollar"
This proposition, while apparently "honest,"
Is thoroughly impracticable and impoltic
AS the price of silver varies almost daily the
amount of silver to be put into the silver dollar,
to make it of equal value to the gold dollar,
would have to be changed constantly.
b. Issue certificates to depoSitors of silver
bullion at the rate of 81 for 4121a grains of
standard silver
@Ihis proposition is recognition of the mex
pediency Of coming silver dollars to pile away
IN treasury vaults, while their paper represent
atives are doing the work of circulation To
TINS extent it is an improvement on the last
-FOUR propositions, inasmuch as it would save
convenient for storage. 1t would also be step
IN the way of International agreement by stop
ping further silver coinage at ratio different
from that almost universal in Furonean conn
tries
rms proposition practically amounts to free
coinage OF silver for depositors, and is open to
al tne serious objections and dangers which
nave been urged against that heroic remedy.
MEASURE RECOMMENDED.
Issue treasury notes against deposits of silver
oullon at the market price of silver when de-
posted payable on demand in such quantities
VI SILVER bullion as will equal in value, at the
uaIe OF presentation, the number of dollars ex-
pressed on the fac9 of the notes at the market
price OF silver or in gold, at the option of the
government; or in silver dollars at the option
vi me holder Repeal the compulsory feature
Oh the present coinage act.
ne secretary desires TO call special attention
W tnls proposition, believing that in the appli-
eatlon OF its principles will be found the safest
SareS5 and most satisfactory solution of the
slyer problem as it is now presented for the
acIlon Of this country
Inc proposition is briefly this: To open the
UNITS OF the United States to the free deposit
vi SILVER. the market value of the same mot
~ exceed u for 4l2.5 grains of standard slver)
~ Ole time OF deposit, to be paid in treasury
uotesi sad notes to be redeemable in the
quantity of silver which could be purchased by
zig NUMBER of dollars ex pressed on the face of
roSes al the time presented for payment, or in
soiu, at the option of the government, and to
S IecelVaote for customs taxes, and all public
S Sue9i ana when SO received they may be reis-
h Sueq, and such notes, when held b. any national