The Superior times. [volume] (Superior, Wis.) 1870-1912, 1889-12-14
HOW WINDOW WOULD SOLVE IT
'ue secretary of the Treasury Enlightens
COngress on the Silver Problem.

tary NiDdom's annual report was sub
mltted to both houses of Congress to-
dsy. The document attracted more
than ordinary attention, owing to the
interest taken in the silver question
and 'he Secretary's proposed solution of
the difficulty. Secretary Window says:
Inc continued coina le OF the silver dollar. at
constantly increasing monthly quota, is dis
tufDlng element in the otherwise excellent inan-
CHI Condltlon OF the country, and positive
hindTance TO any international agreement look
ing 70 the free coinage of both metals at a fixed
ratio.
stated quantities OF silver. ard mandatory coin
age ot the same into full leg teI der dollars are
an unprecedented anomaly, and have proved tu-
Tile, not only i'll restoring the value OF silver but
even IN staying the downward price o TIE metal
since the passage of the sct of February 2S
1873, 10 November /, 1889 there have been pur-
chased 299 $50 II standard ouncs of silver at
d cost OF s2oO, $50 b3S. o. from which there have
been coined SiS 63o, ,00l standard silver dollars.
There were in circulation November of
the present year 60 0S $50 silver dollars, less than
81 per capita. The remainder. 2S3, 5S9 521, being
stored away in government vaults, ofwhIch s277-
3lg,9ll were covered by outstanding certificates
The price OF silver on March /, 1873 was 81 10.
10 pence, equal TO e9 per ounce fine. At
thls price 5000 600 would purchase 1000 729
ounces of me silver, which would coin . l47
2U5 standard silver dollars. At the average price
Of silver for TIE hscal year ended June 30, lSS9,
t4-.499 penceL equivalent to SogSlb3 per ounce
hne, s2,0O0G0 would purchase 2,li6 75j fine
ounces out OF which 2,175, ,62o standard dollars
could be coined
quantity that must be purchased, aud the larger
the number of silver dollars to be coined, to
compy with the act of February IS, 1878.
1t is freely admitted that the predictions OF
many OF our wisest financiers, as to when the
tate limit OF silver coinage would be reached,
have not Deen fulfilled, but it is believed that
the ineiples on which their apprehensions
were based are Justified by he laws OF trade
and finance, and by the universal experience of
mankind. While many favorable causes have
oo-operated to postpone the evil effects which are
sure TO follow the excessive issue OF an over
valued coin, the danger Zone the less exists.
Ii is.unquestionably true that in this country,
puSIlc sentiment and commercial and industrial
necessity demand the Joint use of both metals as
money. It is not proposed to aba don the use OF
either god or silver money; the utilization OF
both metals as Il circulating medium and as Il
basis FOR paper currency is believed to be essen
tlai 10 our national prosperity. We cannot dis
card either II we would without invoking the
most Sc rlous consequences. But the Unprece-
dented change III the market value Of the two
metals within the last sixteen years, and the
steady depreciation of silver in the face of the
large purchases on the part Of this government,
arouse grave apprehensions aud cause great ditti-
culties.
with a stock OF 843 63s COL silver dollars, shar-
ing equally with our god coin the tuucUon of
full Iegalterder money, well as $40 800 600 sill
FtE tOll Oi ttUllttu anu an dUudI PROD
uct OF silver from our mines apprOXimallng &
$4,000 600 tcOlnlng Value), it wOuId not be tor
the interest OF this growing country, nor would
IT oe wise public policy. to discontinue the use
OF either metal as money. Yet II IS equally true
that two widely different and constantly varying
standards. Ior the measurement oil values are
Impossible IN any permanent well-ordeTed
financial system.
While our circulation now embraces gold and
silver coin and four kinds of pa per money there
IS IN reality, since 1873, but one standard Sec
tiOn SJll, Revised Statues, provides that "the
gold coins OF the United States shall be q one
dollar pl -ce, which the standard weigh OF 25
grains shall be the unit OF value" our
eg t. nder notes have behind them, in the vaults
OF the treasury, u reserve OF SlO00J00 600 in gold
provided as guarantee for their redemption.
Our bank currency is based upon United ST les
bonds. tie principal and interest OF which are
payable in gold. Our gold certificates are ex.
pIessly made r. tdcemablc in gold coin.
1t may be said that our standard silver dollars
and the certificates based upon them constitute
an exception. They are an anomaly, the stand
ard is nomnally silver, but in reality ii is gold
The bullion from which these dollars are coined
is purchased at its market price in god. They
are made legal tender, and are receivable foI
customs and other dues. The faith end power oil
the government are, therefore, pledged to make
them equal 10 their face value; and so long
as heir number is kept within sac and proper
limits they Will, i'll this country, at least, be
maintained at par with gold. The honor as
well as the interests OF the country are involved
in the preservation of this parity. Equivalence
ItlNtJu our ROlu anu SILVER uOIldI III foreign
trade is impossible at the present price of silver
Dut equivalence in domestic trade is practicable
so long as the coinage OF the silver dollar is kept
within proper limits
Up to this time they have been maintained at
par by force of governmental authority, and by
the confidence of the people in the good laith
and financial power of the United States. Gold
is the real standard for the measurement o
values, and win remain go uni lsupplanted by its
great rival, silver; or until some international
agreement shall be entered into between gov
ernments strong enough to establish and main
tain fair ratio OF value between the two metals
Force applied through legislative action may
for time control the laws of trade, but eYentu.
ally, those laws stronger than legislators viii
assert their power. There are doubtless persons
who would Danish silver from circulation and
rely wholly upon gold, while Others would make
silver the only standard and by adopting the
cheaper metal drive the deaIer out OF circula.
iiGn, If not out of the country; but an over.
whelming preDonderance Of pub &c sentiment
demands that both metals be utilized.
] he problem, therefore, presented fOI our con
sideraton, and which demands the action o
Congress, Is not which metal shall We use, but
"Elow shalt we use both2' Various solutions oi
this problem have been proposed, among which
the following may be mentioned:
First. An international agreement fixing q
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 es
tablished.
In such concert of action, if it could be &C.
cured is the final and satisfactory solution o
the silver problem. The IOlicy of promoting II
was instituted by the United States i'll 1873 The
proposition was made TO the European nations
and was fully set tor and justified IN two lu-
ternatlonaI conferences. Unfortunately, some
OF the most powerful nations are not yet ready
TO act. Public sentiment, even in those coun'
tries seems TO be steadily moving in that direc-
ton, but thus far no substantial results have
been achieved
1t is believed by many persons, well informed
on the subject, that eventually the evils and EN-
baTrasSmeuts OF the present condition o. affairs
viii become 80 intolerabIe as TO force the mos
reluctant nations into an agreement for the re-
monetlzauon OF silver upon some fair ratio. II
has been proposed by persons of the highest
financial standing, 10 hase this result by stop
ping the purchase OF silver by the United States
aIAby throwing all additional S0,000,OO ounces
Annually upon the market, 10 precipitate so sud
den and great AL in its price as to create seri
Gus financial disturbance throughout the world
adjustment OF the silver question
This policy might prove tie shortest
way Of reaching the desiied result, but
ii would probably be attended by commercial
aud industrial disasters in this country well al
abroad, which conservative craftsmanship should
seek to avoid. Some other less dangerous soiu'
toii should be found il possible. The modtlCa-
uon OF this proposal, fixing date in the future
for suspension in case no cooperation in the
maintenance Of silver on the part OF other ma
lions should be forthcoming, reduces the dan
ger, but does not entirely remove il.
Second. The present policy of purchasing and
coming S2.0'00O0 worth of silver per month
This is now approved by nobody. The so-calleC
silver men oppose it, because IL does not go fal
enough TO meet their wishes; opponents of silver
coinage denOunce ii, because they deem IL un-
wise and dangerous to increase the issue Of d
coin whose nominal value IS far in excess of its
bullion value.
Third. Increased purchases and coinage o
silver 10 the maximum of - 10000 worth pei
month, now authorized by law. This policy il
proposed by many means OF increasing oul
circulation, which they assert is deficient by rea
son OF the retirement Of national bank notes
and also as a means of enhancing the value o.
silver by absorbing the worlds surplus product
Both OF these objects may be far better secured
as Will he shown hereafter, by another method
which possesses all the advantages OF increased
coinage, and involves none Of Its dangers.
The argument has bcen strongly urged that by
reason of the rapid retirement OF national bank
notes severe contraction Of our currency ha'
been effected, which is perayZtngOur industries
crippling -Our commerce, ana depressing tht
price OF all kinds OF property. The facts, however
do not sustain this argument
Since March I, 1878, there has beer
no conirectlon: but on the contrary
g very large expansion OF our currency
The total increase of circulation OF all kind:
hiss been STIS s76 4o3 ard the total decrease STA
%, 90, leaving net increase OF S594. .224,IeS.
The net expansion since March /, ISIS, las
there ore, been S599,224. 49, THIS average net in
crease per month has been 81 S32 294. S521l6 i5
per annuu1. The total net Increase tas beer
a little over a per cent. while the increase il
population has been about 5S per cent. In 1875
The circulation was about SI650 per spita and
in oh uEr