Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1889-12-11

little over "A per cent. wnile the Increase in
population has been about SS per cent In 1878
the circulation was about $1,000 per capita ard
in 1889 it was about S21. rs p capita.
AS to the other proposition, that increased
coinage would enhance the value of silver by
absorbing the worlds surplus product, it is a
matter of grave doubt whether the purchase of
an additional S2,000.00c worth or oliver per
month would have the effect of materially and
an increase of price would temporarily occur, if
this government should adopt such policy,
seems probable, but whether 1T would be main-
tanned Is q matter of conjecture-dependent upon
conditions which one can foresee.
If the purchase of 299. SS9.416 ounces OF silver,
In the briet p, Rod OF eleven years did not even
stay the downward tendency in price, but in the
lace OF this immense quantity purchased silver
de clined over &c per cent. in value, what assur
ance 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 a policy woold 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 countries, and thus
increase the difficulties in the way of an in
ternational settlement Every silver do lar
coined at the ratio of 16 to actually 1898
to u is an additional obstacle in the way
of the adoption of any practical ratio by inter
national agreement, which is the only final sou-
ton of the silver question. For this reason, it
Tor no other, future accumustions of silver
should be only In the form of bullion.
The purchase OF S4,000000 worth of silver
month, at the present pllce of silver, would
mean the coinage of 100000 silver dollars
monthly, to be stored away in treasury vaults.
It may be said that certificates would be issued
on these dollars and that they would be 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 Gov red by Outstand-
ing certificates The substitution OF the silver
certificate Tor the cumbersome and incOnvtnient
silver dollar. while 1T has tended to popularize
1t. and give it a circulation o herwise impossible
and to extend its use illness, anu post pone the
DTODhoSio0. added
to its value, and has relieved the dollar from
none of the dangers inherent in the effort to keep
an overvallle coin at par with gold. These GER
ficates rather add to the perils of such a tnaE.
cial policy by temporarily popularlzlng it, and
by Increasing and iutensifying, through post
ponement, the evil results which inevitably
await upon It's enlargement and continuance.
The coinage of 100000 silver dollars month
would tax the present mint organization to its
utmost capacity, and would practically suspend
the coinage of gold. True, this might be Obvi-
ated by enlarged facilities. but as the coinage of
$1,000, 600 worth month has more than met the
demand Tor certificates, the argument that
this additional col, age would soon be owned by
the people in the shape Of certificates Is MOI sus
tanned by the history of the past nor by the de-
nands OF the pi eSent.
If the issue of silver dollars. or the certificates
which represent them, should become numer-
Gus as to endanger the Tree circulation of god
and its representatives. gold certificates ana le-
BARTENDER notes, the dues OF the government
would soon be paid in silver and heretofore
the interest ana princlp of the obligations OF
the government have been paid in gold it would
only be question of time when the specie reserve
in the treasury would change from gold to silver
to such extent as to force the secretary TO pay
out silver. Just so long as the government does
not f0rcibly pay out silver, but leaves its accept
ance to the option of the creditor, no one is
forced to receive it unless he THINKS he dis
pose OF it at Its face value, and In this way the
number OF silver dollars in circulation is limit
ed to actual requirements But If more than
sufficient to satisfy business needs are issued,
they accumulate in the hands of merchants and
In banks, and, unless the government redeems
them, they must depreciate.
The secretary of the treasury in whom Is
lodged the discretionary power to purchase and
coin Sf,O00000 worth of silver per month, con-
ours in the opinion of all his predecessors since
1o7S, of both political parties, that there is a
limit beyond which it is not rate to go in the
coinage OF full legal tender dol-rs, the nominal
value of which is far In 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 IT minis to tree coinage for depositors,
when 4l23 grains OF standard silver are worth
in the markets of the world only ~ cents, would
be TO say to everybody at home and abroad,
bring us " cents worth OF silver, and by the
magic of our stamps and dies we will transmute
it iuto 100 cents.
Free coinage of silver, while it is an lndispens-
able condition of pc manent restoration, were it
bestowed by this country at a time when the
metal value OF the silver in the full legal-tende
dollar is % cents less than its nominal value,
would simply have the effect, by opening the
mlnts 10 the tree coinage OF ST yer into legal dol
No doubt our minis would hnd ample employ
me- t. If they were now open TO the coin
age OF silver we should not need them for the
coinage OF gold because gold would command
premium and come commodity TO be hoard
ed CT shipp dabroad. 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 silver, our legal tender notes would be
used to draw the gold from the treasury, and
Would then represent ony debt in silver, and
we should be co PEELED TO go into the market
and purchase gold to ct obligations, or
pay them in silver dollars Rich and powerful
as the Unite State is, we are not strong enough,
nor rich enough, TO absorb the silver of the
world, without placing our country who ly upon
the As1Atlc 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 as money.
Nor would it meet the hopes and expectations
OF those who desire an increase of our circulat-
ing medium. The amount gold and gold GER
titicates owned by the people and in actual cir
treasury November i, 1889, was 1896 622, 800.
Free COMA of silver dollars would, as already
stated, very soon put this large amou It of gold
at a p emium, and cause it to be boarded ex-
ported and thus retire it from circulation.
Even if we should coin 100. 000,0O0 standard
silver dollar a year, ii would be five years before
enough of them could be put in circulation to
equal the gold thus banished, and by the time
100000, 600 silver dollars in addition to our pres
ent ST. OK, could be circu ated, their deprecia-
ton from the gold standard might require one or
two hundr millions more to do the same
amount of work now done by gold.
1t is difficult to conceive OF mel bod by which
more swift and disastrous contraction OF
currency could be produced. 1t is within The
memory of all that for several years prior to 1879
gold was not in circulation as money, but when
resuu ption took place, the hidden treasures
which had so long been banished from actual
use at once flowed into the Channels of business
and produced the most substantial and satisfac-
tory conditions OF prosperity. The free coinage
OF silver dollars, Under existing C rcumstances,
would be 60 reverse The results achieved by re-
sumption
Filth. The coinage of silver dollars containing
a dollars worth of bullion. This has been with
many iavorite solution of the problem under
discussion. They say we have no objection to
the coinage of silver If You will only make an
hone>tdollar, by putting into it enough silver to
ma Ike it equal i'll yslue to gold dollar" This
proposition, while apparently 'hones:," is thor
oughly impracticable and impolitic. the
price of silver varies almost daily, the amount
of silver 20 be put into 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 or gold and the dollar
OF silver would not b. so great the relative value
OF the two dollars would in reality be fluctu-
ating and uncertain as it is now. The present
silver dollar is inconveniently arge and heavy
for actual use money, and to increase its
weight from 4121S to $50 g,ains(wh at the
present price OF silver wonld be the equivalent
the gold dollar), that is. to its bulk 80
per cent, would make It simply intolerable
Another obi, cion is that the coinage of
hoox H.,1l h.. obs ofiO