The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-05-16
A MoNo-sILvER STANDARD.
The Views OF Leading Broker Of Ne
York CITY.

w hdb w w W III ohd hhS "a
ception to one statement only, viz: Where
you say that $40, O0O, 900 OF the silver dol
lars "are still in the hands Of the Govern
ment aud cannot be forced into circula-
tion." You should have added that $751;
263,679 are in circulation in the form Of
silver certificates, and that the dollars mem
toned by you are to an equal extent held
in storage to redeem them. AS regards
your illustration Of the double dose Of
laudanum, of which my recommendation
that the coinage OF the silver dollar be in
creased as remedy for the danger OF the
present financial situation, reminds you,
it must be remembered that almost every
one believes that the present amount
OF coinage will ultimately lead to the
abandonment Of the gold standard. In
that event, while both metals will continue
to be legal measures OF value, silver will
predominant, and we shall practically have
all our assets measured by the silver dol
lar. Under the present coinage we will
surely come to this, and the present appre-
hension OF the depreciation in the value OF
property and the appreciation in the value
OF money is leading to panic and bank
ruptcy. Therefore your suggestion OF the
double dose OF laudanum indicates the
course that deem wise. The increased
coinage OF silver and the increased pur-
chase OF silver bullion for the purpose will
raise the price Of silver and bring the value
OF 1925 grains OF silver bullion nearer to
that Of 25.S grains OF gold, thus tending
speedily to restore the bi-metallic standard
of gold and silver as it existed prior TO
1873. But II this result, which / deem
certain, be not realized, the increased coin
age will sooner bring us to the point which
the gold mono-metallists say is certain TO
he reached with the present coinage, viz,
the abandonment OF the gold standard.
II this agony has TO be passed through,
the sooner II is done the better. Since
you have referred to me as the one bank
er who has recommended this desperate
remedy, trust you will in justice to me
publish my reasons for being an advocate
OF bi-metallic foundation for our paper
credits and currency. Prior to 1873 both
gold and silver were available in the
hands Of the debtor class TO meet their
obligations. Since that date international
and other credits have been on gold
basis. In other words, the gold mono. me-
tallic standard has been the measure by
which investments have been made and
settlements effected. Before that date a
debtor in any country had practically the
option OF paying in gold or silver at GER
tain established ratio between the two
metals. The mihts Of the world with the
exception OF England, were open to the
free coinage of gold and silver at an esiab-
lished ratio. and for years before the price
OF silver as measured by gold had remained
almost constant The combined mass OF
both precious metals was open 10 the
debtor class rs means OF paying their
liabilities, and the possibility OF cornering
or in any way affecting the comparative
paying value Of the one metal nj the cx.
pense OF the other was brought within
such narrow limits as TO be inapprcciahle.
The debtor had always the choice of tho
metal which happened 10 be the more
easily procurable, and this power OF choice,
creating a demand, counteracled any in
cipient iluctuation. When the minis oil
Europe and this country were closed "a
silver, all payments had TO be made in
gold alone. | contend that this fact has
unduly appreciated that metal, and this
must be true, II there Is any basis 10 the
economic doctrine OF supply and demand.
-Fhe immense demand for paving
debts suddenly thrown on gold has
been rapidly approaching the value
OF that metal, and is compelling
the debtor class 10 pay more than the
equities Of contracts call for. While the
money in which the debtor has 30 pay i
approaching his assets are deprociaiing
In 1852 when gold deprecated in yaluC
81 81 al
iiornia and Australia, we heard the same
cry from the holders OF fixed incomes IN
regard 10 gold that We now hear in REGARD
10 silver / remember that the Prcsidcn
OF the Bank Of Commerce, Of this city
instigated by European fnancier anc
bankers, printed a pamphlet advocating
the demonstration Of gold.
The same train OF reasoning led TO III,
decentralization OF silver in 1873, and !
from new discoveries OF gold mines ih,
supply OF gold should again increase, as !
did IN 1852. the same men who now y,
eagerly sustain the gold basis and deer,
the use OF silver rs money would just ~
eagerly seek to demoneiize gold and rein
state silver. They are always in favor o
the dearcr metal, whichever il happens {,
be, and do not wish &c ro-esiablish th,
legal tic between the two which will pre-
vent serious AUCTIONS.
On the whole II Is much more conduciv,
10 public prosperity 10 have the condition
OF things that, on n sound metallic basis
enables the debtor most easily 10 meet hi
obligations, than 10 have the creditor aug
ment his income by narrowing the metal
lie foundation Of all business transactions
This narrowing OF the metallic basis react
in the end on those who advocate II, for !
requires but slight investigation 10 dis
cover that incomes, rents, interest an,
dividends are being lcssencd by the In
creasing purchasing power Of money Thi
Is leading directly TO disaster, panic, bank
rup,cy and reputation.
Ii appears 10 me that England u wakinl
up TO the disadvantages OF her manuiac
turer and commerce OF the disarmngc
ment Of exchanges with silvcr-using c0un
tries II also appears 10 mo that, even
this country becomes silver mono-metallic
that We shall attract largo portion Of TN
Asiatc trade and NIL OF the trade with tn
silycr.using nations on the American con
unont. Therefore, for selfish reasons a
well rs 10 preserve the equities between
debtor and creditor, ! must be pcrmitle,
90 continue TO advocate the opening OF on
mlnts 10 the coinage Of silver ~ they wen
prior to 1873 believe the increase OF ih
coinage Jfthe silyerdollar under the prcscn
law Is first step In that direction. tn
public mind is, In my opinion, entirely n
sea rs to what the price Of gold will b
when the country comes practically 10 thI
mono.silyer standard. The statcmcn
made ~ TO the trcat depreciation in th
purchasing power OF the silver dollar a
compared with the gold dollar ] believe 4
be grossly exaggerated.