The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-06-15
THE SILVER DEUCE"

A correspondent inclOses an extract from
an Eastern paper on the proposition to coin
S4, 500, 000 worth of silver each month. The
writer is afraid of what he calls a silver
deluge," forgetting apparently, that sill
yer deluge is, in reality, money deluge.
Unless the idea shall be advanced that
nation may come to grief through having
too much mOney-nOt paper representing
money, but the thing itself-there is no
ground for the apprehension that silver
deluge will be disastrous. The writer how
ever makes one or two points that are
worthy of consideration. lie says:
Before any more "relief silver bills" are
passed would it not be well 10 demand OF all
those States interested In its production that
they shall first pass laws within their own COM
monwealths making silver coin receivable Tor all
debts? While it is a well-knOwn fact that gold
Is the only medium OF exchange In those States
west of the Rocky Mountains, aud that national
banks, they known here, have failed TO
win support there, should not those States so no.
toriously advocating the dollars Of our daddies"
be compelled TO take their own medicine before
they attempt to force 1t upon us?
The States west Of the Rocky Mountains
have in their commercial dealings followed
the rule established by the Treasury
Department. While our bonds and green
backs are by law Iayable in coin the Treas
ury Department pays them in gold. This
policy has created the gold standard in the
country and necessarily in all parts of it.
If the States west OF the Rocky Mountains
should enact local laws making silver re-
cevable for all debts we should put our
selves in a financial sense out of the Union.
Our merchants buying goods in the East
would have to pay for them in gold, but
they would sell goods for silver To avoid
this condition we accept the Eastern gold
standard. All notes of hand and contracts
to sell at future date call for gold coin.
But the present purpose Of the silver men
is TO bring silver up to level with gold, and
when that point is reached it will make no
differences whether contracts are payable
in gold or in coin, as the coin of the two
metals will he interchangeable. No State
can without injury TO itself put itself out
of harmony with the financial system of the
country. Much as we may desire to see BIZ
metallism established no single State can
contribute materially 10 that end by adopt
ing the silver standard. The Eastern writer
ignores the fact that Congress in the So
called Bland act declared the 412h-grain
silver dollar legal tender for all purposes.
But Congress did not declare that parties
should not make contracts with each other
to make certain designated payments in
gold. Except in the case of such contracts
silver is legal tender. but the West fol-
lows the rule of the financial center of the
country in adhering in practice to the gold
standard. The fact that silver dollars are
interchangeable with gold does not affect
the statement that the United States
preserves the gold standard since the
limited amount of these silver dollars now
coined is maintained az an artificial value
and on an equality with gold. If the coin
age should be increased to S4500.O00
month the artificial value would be main
tanned until such time as the market value
of the silver in silver dollar should be
equal to the market value Of the gold in
gold dollar. AT least such is the eXpecta-
ton Of the advocates of the increase of
silver COinaue