Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-10-18

YER coinage would debase the money of
the country, and many there are who
honestly feared it.
What are the facts? The bank circu.
lation has constantly shrunk, and the
circulation of silver has constantly in
creased, until only about five millions of
dollars in silver coin are in the Treasury
vaults today. Indeed, but for this repre-
sentation the business of the country
could not be done. The Boston Herald
chides it's New England contemporaries
for still advising against the authorized
monthly coinage, and says there can be
nothing to fear from it. 1t is absorbed,
readily and gladly taken everywhere.
Aud now comes still newer and more
noteworthy conversion. Mr.. VIM. P.
st. John, President of one of the largest
New York banks, is out in behalf of a
proposition for the Government to invest
no less than 81, O0O, 900 monthly in silver
bullion, so long as the Secretary of the
Treasury shall not pay over 9s1a
cents for every dollars worth of coined
money, and to cancel legal tender notes
as fast as the silver coinage can take
their place. He says that if the country
can maintain $500, 600, 900 of paper
that has no intrinsic value, and
keep it on par with gold, it could easily
maintain much larger amount of silver,
and his conviction is that such substi-
tuition would have the effect of so in
creasing the price of silver that it would
be brought practically to the old rate
with gold all over the world.
This is noteworthy sign of the times,
that such financier from the old hard
money centre should take go pronounced
and advanced ground. He recognizes
not only the political power of the silver
men that must be recognized in Con-
gress, but he admits the substantial JUS
tice of their cause.
What gives money its value? Surely
it is the Government that is behind it
the authority of powerful laws. The
"Trade" dollar is only worth seventy
two cents, and yet it contains APO grains
of silver, while the" Bland" dollar is worth
hundred cents though it contains only
4121s grains. What makes the difference
One has a Government behind it, and
the other had not. The truth is there
has been an artificial and groundless &C
cusation against silver and its advocates
who are not less sound and sensible
men than the bankers who have
had very nearly a monopoly of what
has always been considered the
safest business in the world-being
done at low rates and yet paying
them the highest profits known to
modern business.
And not only are the advocates Of
liberal coinage of silver sound and safe
men as individuals, but the communities
they represent are sturdy and conserva.
tive. In the great money centre OF New
York the bank reserves average q per
cent, only per cent above the legal re-
quirement. In San Francisco the reserve
is SO per cent.-thirteen per cent. above
the requirement. There is as much sound
ness in banking and currency in this
new West as in the old East, and there
have been fewer bank failures here thar
there, despite the many beoms that have
spent themselves lately this side thu
mountains. The American people love
fair play for their products, and they are
soon to have it for their silver, which hal
been grossly disparsged for so many
years.