New-York tribune., 1889-12-24
SILVER NOT A COMMODITY.

silver bullion notes is discussed intelligently
by "The Engineering and Mining Journal"
but this cannot be said of some other papers
which have denounced the plan as savagely as
if the Secretary had intended to debase the
currency and insure repudiation. 1.-The En-
gineering and Mining Journal notes that Mr..
Leeeh the Director of the Mint "who has de-
voted so much attention to the subject and who
is especially familiar with the foreign statistics
of gold and silver, sees none of the dangers
that many others believe lie in the proposed
silver scheme and is confident that 1t is not
only safe but good measure" 1t remarks
Every one will admit that Mr.. Leech's opinion
in this matter should carry great weight" but
urges two objections. as follows:
First-That the Government has right to use the
peoples money to create corner in any metal or, In
other words to buy what not neededin this case for
coinage purposes.
second-The mere fact that the Government an
nounces itself ready to buy all the silver that may be
offered at the average price in the chief open markets
WILL Of course inevitably lead to prompt advance In
the price of silver to 81 90 per fine ounce
stndy of the statistics of the several metals VIII
satisfy every that the tendency OF their commercial
values Is always downward corresponding with their
cost of production II silver is to be considered as
i'-
ostensbly makes in placing its value at its price in
the omen market them since the cost Of production Of
silver steadily and somewhat rapidly declining the
commercial value Of the metal will also decline unless
held up artihcally.
The first objection seems to be a mistake.
The use of silver bullion as a basis Tor notes
employed as money is in every respect as legltl-
mate and constitutional as its use in the form
of coins, and the question whether more bullion
will be delivered to Government than the
country needs to use as money, through repre-
senting notes. is one which can only be an
swered by statistics of the worlds demand and
supply. which Mr. Leech is especially familiar
with and has discussed ably.
The second objection appears to be based
upon misapprehension which is common,
namely, that the Secretary intended to pro-
pose unlimited acceptance of silver bullion on
deposit, without any discretionary power to
refuse deposits of foreign silver. But it was
expressly provided in Mr.. WINDOWS statement
that such discretionary power should be IN
trusted to the Secretary. and he suggested also
that the deposits might be limited to American
silver, if that were deemed necessary. The
two points together cover a feature of the plan
NllINH JHC DSNlCbdIf uOhpbiNSS NOh'iN~'NN N''~''
ta THE TRIBUNE suggested at the outset
that it would probably be found necessary to
provide that holders of foreign silver should
not be admitted to the same advantages which
the measure would give to American producers.
There never has been and never will be a
price of silver as a commodity merely" THE
TRIBUNE thinks The proportion of this metal
used for all other than monetary purposes is
small, and the demand for use as money always
has been the controlling one. If the United
States takes enough silver to lift the price to
the American coming rate what motive would
other countries have even then to unload their
coined silver? The silver in Europe is nearly
all coined at the ratio of Is 12 ounces to one
ounce gold. The United States coming rate
is 16 to /. Thus 155 ounces of coined silver
would buy exactly as much gold in Europe as
100 ounces in the United States if silver were
at par. A difference of per cent in value
would take all available silver not to but
away from the United States, just as it came
to pass from 1884 to 1873 that no silver re-
mained in this country to be coined, because
the market value of the metal was controlled
by the coming rate of the Latin Union. Our
mints were open, but year after year no silver
came thther for coinage.