Los Angeles herald., 1890-06-18
A VERY SIGNIFICANT CONVERT.

reading the monthly statements of
Henry Clews & Co., the New York bank
ers, have noticed gradual but marked
change in the tone of those documents
during the past three or four months.
Five months ago these precious outgiv-
lngs were Enthusiastically hostile to silver.
They anticipated 'honest" John Sher-
mans hysterical scream for an "honest'
dollar. Even New York goldbugs can
exemplify the old adage which runs,
1.-The case being altered, that alters the
case" Perceiving that there is an un
mistakable purpose on the part of the
American people to restore silver to it's
rightful status, the Messrs. Clews & Co.
now find it expedient to tell the truth In
the last issue of their circular they say that
the Bland silver act is the law under
which the secretary is now governed.
Since the passage of the present silver
act in 1873, no secretary of the treasury
has ever issued over two millions each
month of silver money, while the law
permits four millions to be issued. The
law requires that the amount shall not
be less than two nor more than four
millions, but the amount decided upon
must be coined into standard silver dol
lars. This makes the silver dollar now
equal to about So cents of market value
and the remaining II cents is govern
ment credit; but the government credit
only passes in this country in its connec-
tion with this silver money, it does not
pass current abroad. The silver dollar
is only worth in Europe what it will
yield in pure silver when melted, now
49 pence per ounce. Not long since Al y
pence per ounce was the market value
of silver in London, and it would not
probably be much more than that now
had the present agitation of the
silver question not been brought up
in Congress. The interest of the
great merchants in London whose bust
ness is with the east always favors a
low price for silver bullion, and their ef-
forts have been to depress the price.
London has now lost the power of dicta-
ton to the silver market, and this coun-
try, which is entitled to it, has assumed
it. Ii the present silver bill passes, the
powero of dictation will remain here, and
Londenswill adopt and follow ourfigures.
Silver is one OF our crops, and we are
benefited by the advance in it's value.
and in time it may go to point to be on
parity with gold-16 to / ; this means
60 pence per ounce in London, and 129
cents per ounce in this country. This
was its status In 1873.
The advance in silver to price APP
proximating these figures would be COM
paratively easy at the present time, be-
cause there is no large surplus of silver
anywhere now except in Germany, and
there the amount is much less than
generally supposed. Some irresponsible
authorities have stated the amount to
be $500, 100000, whereas the real amount
is about 00,0O0,000 marks, equal to
$96 100000. The high rate of interest in
India during last winter (the Bengal
Bank rate being II per cent for pro-
longed period) drew the surplus Of silver
from London The silver in France is
in use as money, and as it is needed
there will remain, and the higher it is
marked up here and in London the
greater confidence will the people of
France have in it, hence with the greater
tenacity Frenchmen will hold on to it.
As silver appreciates and becomes more
valuable with the prospect of perma-
nance which Europe now begins to
understand as well as we do, we need
have no fears of any material unloading
of silver upon us from that quarter. The
300 100000 of population in India and
400, 100000 in China have made silver
their only money. This creates de-
mand alone each year for almost all the
silver that is produced in other quarters
of the world. If we will therefore take
care OF what we mine in this country
and if the silver bill becomes a law, this
will be accomplished, as, after providing
for the arts, four and half millions
worth of silver each month to be pur-
chased by the United States government
will absorb what remains, thus cutting
Off our heretofore export of silver to
London OF h1teen millions each year.
These converted bankers even 90 to
the extent of saying that the secretary
OF the treasury, under all the circum-
stances of the case, might well have ex-
ercised the power conferred upon him by
the Bland bill, and have bought and
coined four million dollars worth of sill
yer month. Really, if such CONVEX
sions shall continue there is no telling
where we shall pull up.
What we would like to know is how it
has come to pass that no secretary of the
treasury since 1878 has ever exercised
this power, although money has been SO
tight since then half a dozen times as
almost to result in panic 1t would be
be highly interesting to get at the bot
facts of this darkly mysterious matter.