The Superior times. [volume] (Superior, Wis.) 1870-1912, 1889-12-14


face OF this immense quantity purchased silver
declined over % per cent. in value. what assur-
anee have we that doubling the amount TO be
purchased and coined would materially and
permanently enhance the price OF silver much
less restore the former equilibrium
such policy wo0ld on the other hand be at
tended by great dangers, and would widen the
gap between the legal ratio in coinage of this
country ard European counties, and thus
increase The difficulties in the way of an in
teInatlonal settlement. Every silver do lar
coined at the ratio of 10 to / actually 1875
TO j Is an additional obstacle in the way
OF The adoption OF any practical ratio by inter
national agreement, which is the only final soiu-
non OF the SILVER question For this reason II
for no other future accumuations of silver
| should be only IN the form of bullion.
The purchase OF S4,0o000d worth OF silver a
month, at the present price of silver, would
mean the coinage of 100000 silver dollsrs
monthly, TO be stored away in treasury vaults
1t may be said that certificates would be issued
on these dollars ana that they would be a pop
ular form OF currency, but the fact is that at no
time since the coinage of the silver dollar was
commenced has the iull amount OF silver dollars
held by the treasury been COW red by outstand-
ing certificates, The substitution OF the silver
certificate for the cumbersome ana incouvenieut
silver dollar, while II has tended to popularize
It, and give il a circulation Otherwise impossible.
and to extend its usefulness, ana postpone the
evil day so often prophesied, has added nothing
to Its value, and has relieved the dollar from
none OF the dangers inherent in the effort TO keep
an oVeryalut d coin at par with gold. Ihesecer-
ncates rather add TO the perils of such a fBaE
cial policy by temporarily popularlZing it, and
by Increasing and intensifgfng through post
ponement, the evil results which inevitably
await upon its enlargement and continuance.
The coinage of coo, 900 silver dollars month
would tax the present mint organization 10 its
utmost Ct oacity, and would practically suspend
the coinage of gold, True, this might be obVi-
ated by enlarged facilities, but as the coinage O
81, 900, 600 worth q month has more than met the
demand for certificates, the argument that
this additional cOiCage would soon be owned by
the people in the shape of certificates Is no.
tanned by he history OF the past nor by the de-
manGs OF the present.
If the issue of silver dollars, the certificates
which represent them, should become SO numer-
Gus as to endanger the free circulation of gold
and its representatives gold certificates and le-
gal tender notes, the dues OF the government
would soon be paid i'll silver: and as heretofore
the interest and principal of the Obligations OF
the government have been paid in gold ii would
only be questioned time when the specie reserve
in the treasury would change from gold 10 silver
10 such an extent as TO force the secretary to pay
out silver. Just so long as Inc government does
foTciblv nay out silver, but leaves its accept
ance to the option OF the creditor, no one Is
forced 10 receive it unless be thinks he dis
pose OF 1t at its face value, and III this way the
number OF silver dollars in circulation is limit
ed TO actual requirements But II more than
sufficient TO satisfy business needs are issued
they accumulate In The hands OF merchants and
| in banks, and, unless the government TedeemS
them they must 6epreciate.
The secretary of the treasury in whom il
| lodged the discretionary power to purchase and
| coin s4uO0,000 worth of silver per month, con
ours Ill the opinion OF all b predecessors since
h
| limit beyond which 1t is not fafe TO go i'll the
coinage OF full legal tender dollars, the nominal
value OF which Is far III excess Of the bullion
| value, and he has therefore confined his pur-
| chases to the amount required by law.
Fourth. Free coinage of standard silver dol
| lars. This may be called the heroic remedy
To open our mints to free coinage for depositors,
| when 4I215 grains of standard silver are worth
| in the markets OF the world only u cents, would
| be TO say to everybody al home and abroad,
bring US - cents worth OF silver, and by the
| magic OF our stamps and dies we Will transmute
| il into 100 cents
Free coinage Of silver, while it is an indispeng-
| able condition of permanent restoration, were it
| bestowed by this country at time when the
metal value OF the silver in the full lega-tender
| dollar is . cents less than its nominal value,
| would simply have the effect, by opening the
mints 70 the tree coinage OF silver into legal dol
lars, to close them Tor the tree coinage of gold.
| No doubt our mints would hnu ample employ
ne t. If they were now open 10 the free coin
| age OF silver we should not need them Cor the
| coinage OF gold, because gold would command
| premium and become commodity TO be noard-
| ed or shiPp5 u abroad. and not coin for circula
| ton at home. 1t would stop the stimuli
taneous circulation OF gold and sill
| yer. Our customs dues would be paid
only in 81, II, our legal tender notes would be
| used to draw the gold from the treasury, and
| would then represent only debt in silver, and
! we should be con PEELED 10 so into the market
| and purchase gold to met our obligations, or
| pay them in silver dollars. Rich and powerful
as the United States Is, we are not strong enough
| nor rich enough, to absorb the silver of the
| world, without placing our country wholly upon
| the Asiatlc silver basis. This policy would in no
| wise tend TO restore the desired equilibrium be-
tween gold and silver nor to promote their joint
| use money.
Nor would it meet the hopes and expectations
OF those who desire an increase of our circulat-
| ing medium. The amount o. gold and gold GER
| titicates owned by the people and in actual cir
| culation, exclusive of SlS7572,SS6 owned by the
| treasury November l, 1889, 1896 622, 800
| Free coinage OF silver dollars would as already
stated, very soon nut this large amount of gold
| at premium az, 1ause ii to be boarded or ex-
| ported and thus re it from circulation.
| Even if we should coin 100, 600 standard
silver dollar year, it would be five years before
| enough of them could be put in circulation to
| equal the gold thus banished, and by the time
10000 900 silver dollars, in addition to our pres
| ent stock, could be circulated, their deprecia-
| ton from the gold standard might require one or
| two hundred millions more TO do the same
\ amount of work now done by gold.
| II Is difficult to conceive of method by which
| q more swift and disastrous 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 as money, but, when
| resum ption took place, the hidden treasures
| which had SO long been banshed from actual
| use at once flowed into the channels of business
| aud produced the most substantial and satisfac-
| tory conditions of prosperity. The free coinage
| OF silver dollars, under existing circumstances
| would be to reverse the results achieved by re-
| sumption.
Fifth. The coinage of silver dollars containing
| dollar worth of bullion. This has been with
many favorite solution of the problem uEder
| discussion. They say we have no objection to
| the coinage of silver if you will only make an
honest dollar, by putting into it enough silver to
| make it equal in value 10 q gold dollar" This
! proposition, while apparently "honest," is Thor.
| oughly lmpTacticab!e and impolitic. As the
| price of silver varies almost daily, the amount
of silver 20 be put ito the silver dollar, to make
| il OF equal value to the gold dollar would have
| to be changed constantly. While the diver
| gence between the dollar OF gold aud the dollar
of silver would not b. SO great the relative value
OF the TWO dollars would, in reality, be fuctu-
! ating and uncertain as il is now. The present
| silver dollar is incOuyenienuy large and heavy
| for actual use as money, aud to increase its
weight from 4l212 to $50 grains (Which at the
| Tresent price of silver wonld be the equivalent
OF the gold dollar) that is to 1ncr ase its bulk 80
| per cent, would make 1t simply intolerable.
| Another objtc tctiou is that the coinage of a
| heavier dollar would be a new obstruction to
| any international ratio. The paramount objec-
| tiOn TO this plan, however is that II would have
| decided tendency TO prevent any rise in the
| value OF silver. Selling ii 1T its present low
price, the law would in effect declare that il must
remain there forever 10 far as its uses for coinage
| are concerned.
Sixth. Issue certificates 10 depositors of silver
bullion at the rate OF 81 for 4l25 grains of stan
| dard silver.
| This proposition is q recognition Of the mex
| pediency OF coming silver dollars to pie away
! i'll treasury vaults, while their paper represents
| tives are doing the work of circulation To this
| extent it is an Improvement on the last four
| propositions, iIasmuCh as ii would save the use
| less expense OF coinage and be more convenient
| Tor storage. II would also be a step in the way
| of an international agreement, by stopping
| further silver coinage at d ratio different from
| that almost universal in European countries.
| This proposition practically amounts TO free
| coinage of silver for dept tsitoTS. and is op to
sll the serious objections and dangers which
! have been urged against that heroic remedy.
| Issue treasury notes against deposits OF silver
| bullion at the market price of SILVER when de
| posted, payable on demand in such quantities
| of silver bullion will equal in value, at the
| date of presentation, the number OF dollars ex-
| pressed on the face OF the notes at the market
price OF silver or III gold, st the option of the
| government; or in silver dollars al the option Of
| he holder. Repeal the compulsory feature Of
| the present coinage aei.
| The secretary desires to cali special attention
TO this proposition, believing that in the sppli-
cation OF its principles VIII he found the safest,
surest ana satisfactory solution OF the silver
problem as it is row presented for the action OF
| this country.
| In explaining the proposed measure, at this
time, II IS intended TO deal only with its general
features, but If desired, bin embracing the de
tails believed to be necessary to its satisfactory
operation will be prepared and submitted ior the
consideration n OF Congress.
The proposition Is briefly this: To open the
Inuts of the United States to the free deposit OF
silver, the II arket value of the same mot to ex-
! frpJ ~ standard silver et the