The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-09-18
CHEERFUL SILVER VIEWS.

Edward Atkinson, the well-known writer
upon political economy, recently read pa
per before the American Bankers Assoca-
ton, the especial title of which was Credit
the Main Factor In Making Prices" Mr..
Atkinson does not think bimetaliSm posi-
Bile. He doubts if even universal act of
bimetallic legal tender established through
out Asia, Africa and South America, as well
as in Europe and this country, could prevent
gold from being withdrawn and boarded in
preference TO silver, if there should be such
excessive production of silver as was at one
time feared. Mr.. Atkinson continues:
OF that excessive production can, however,
see no prospect, and feel well assured that even
the present futile acts by which the friends OF
silver" called, are interfering with its nominal
price, and probably keeping 1t below its normal
value, will create only temporary disturbance,
ard will not seriously impair the great volume OF
credit, which is the prime factor In making prices
and facilitating exchanges.
This is the best Mr.. Atkinson can say for
silver. He seems to be really apprehensive
that a broadening of the basis of credit will
impair credit itself Assuming that there
are six thousand million dollars of gold in
the world in the form of money, and that
there are six thousand million dollars of sill
may be added to the stock of gold money, he
thinks our credit would be better with six
thousand millions as its basis than with
. twelve thousand millions as its basis. Such
bimettllic act as he refers to would blend
the volume of money of the two metals into
a common stock, which would be available
in payment of the various forms of indebt-
edness which the use of credit assumes. One
h,r. fl,a osopipcr hy
wlich six thousand millions is made to APP
pear the be tier basis of credit, but it appears
to be satisfactory to the advocates of single
gold standard. All forms of credit are
simply promises to pay coin on demand or at
given date. The value of these promises de-
ponds upon the probability Of their being
kept. The paper evidence of Indebtedness
is good until there is DOUBT if the coin can be
had when called for. To mind not OBJ
Scured by study of financial problems with
a purpose to reach certain results, it would
appear that the larger the amount of coin
from which credit could be satisfied the less
danger of demand for coin payment. OF
course it is we'll understood that there is
not gold and silver coin enough in the world
to redeem all promises to pay with. Finan-
cial chaos is prevented only by the existence
VI Nloult W Hidhiib oaCH Siouitoi poitef0
that he could have the coin if he should de-
nand it. The United States began to redeem
greeubacks with reserve fund of 100000
0O0 There was S56500O,0G0 Of greenbaeks
aticat. But with S1oo,oO0ooO in coin to pay
out, and with the known ability of the Gov
ernment to provide more coin if it should be
wanted, there was no considerable demand
for coin. To this day the volume of legal
tender has not been greatly diminished
The same rule will apply to the worlds
credit generally. The larger the stock of
coin with which promises TO pay may be re-
deemed the less likely are promises to pay
to be presented