Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-06-25
THE TWO BILLS.
If the Senate Bill Passes it is Free Coin
age and Lower Securities.
II the House BIZ Passes It Is Restricted Coin
age with Redemption and Higher
Prices for Securities

NEW YORK, June 19.-Congress pre-
sents an unusual spectacle at the presen'
time. The house, on the silver question,
is conservative, while the senate is ap-
parently the reverse. On most great
questions requiring conservatism il is
generally otherwise. This silver legisla-
ton occupies now a peculiar position. II
the senate bill passes, it is free coinage.
If the house bill becomes q law, it is re-
stricted coinage, with the important and
conservative feature of redemption in
bullion at market price. The house bill,
if passed, will doubtless advance the
price of securities; while the first effect
of the senate bill, If passed, will be TO
depress them, as it will probably cause
considerable European selling on the fear
that this country will, sooner or later,
drift TO silver basis. On this theory
European buying of American securities
will be likely to discriminate in favor of
those payable principal and interest in
gold, and for the same reason cause the
selling of those that are not SO payable.
The amount of the gold-paying securities
is comparatively small, however. as
BILE III current funds. In a country like
this, with such vast resources. infinitely
greater than any other nation,
the mere fact of Increasing the
silver circulation, in accordance
with the house bill should not
create alarm. This is at the rate of ST.
500 200 per month, or $50 200, 1000 per
annum more than archaeological to
$500 600 ZOO in ten years. This amount,
added to the present outstanding silver
and silver certificates, will make $780,
900 900. Add TO above the present issue
of silver certificates, 81 200, ZOO each
month, will make 5000 200, 900 in all as
kiputstandIng ten years hence. France
'ehas to-day $500, 200 ,000 of silver in cir
culation, including what is in the Bank
of France, which is kept on par level
with gold. III France the amount of
money in circulation is S5S per capita,
while 1t is only S22 per capita in this
country. France has population of
sGeo, America 50, 600, 00C. While
tbs people of France are spending a
franc, (one-fifth the amount of our dol
lar } the people of this country spend 81
in other words, the ratio of personal
expenditures in this country is at least
81, or five francs, as against one franc
i'll France. This greater lavishness in
money spending in this country tends to
make the circumlocution of money great
er here than it is in France. In France
there is much hording of money, while
in this country there is but little.
Since the agitation in congress of the
silver bill, most spectators, by a pro-
cess of infiamed imagination, pictured TO
themselves that the same speculative
the period of the resumption of gold pay
ments in 1879. Had they. however,
given themselves some time for reflection
and thought on the subject. they would
soon have discovered that the two periods
were not fairly comparable. The re-
sumption of specie payments gave to the
large paper money circulation of this
country then outstanding not only a
gold value, but also added to the oircu-
lating medium about S27S, 900 900 of
gold then supposed to be in the country,
which prior to that time was only held as
so much merchandise. The process in
that instance was the building up of de-
preoiated money to the gold standard as
well as increasing same, to the extent of
S278 ZOO, 900 at least; whereas free COIN
age of silver, as proposed by the bill re-
Gently passed by the senate, is il any
thing q process, as many think, of a
possible drifting from the gold standard,
and tends to detract, rather than add to
the confidence in the future of our stand
ard value of currency. In other words,
it is not unlike increasing the issue of
the stock of railroad company, which
in Wall street is termed watering 1t.
In January, 1879, when specie pay
ments were resumed by act of congress,
have already stated that there were
about S27S 900 200 of gold in the coun-
try, which at once commenced to per-
form the function OF SO much additional
money, besides becoming the substantial
basis of the papsr money and thereby ele-
waiting it TO a level with gold. There was
then outstanding 1916 ,6S1 600 of green
backs and about 1924 200, 600 of national
bank notes. At the present time 1t is
estimated that there is 1929 1000. 900 of
gold in this country, S346 ,6Sl 200 of
Greenbacks, less S57 900, 900 in the
treasury held against called in national
bank notes, and SlS7 $40 600 of national
bank bills, sec 200. 900 of silver standard
dollars, SIC, Sls 200 subsidiary silver, and
$500 200, 900 of silver certificates, with
over double the amount of gold now in
the country, as compared with the time
of.speeie resumption, to back the same,
Stiieh is not showing that should cause
III forebodings even in The minds of ma
tural- born pessimists 81
HENRY CLEws.
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