Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-19
THE SILVER BASIS.

The action of the Senate in converting the
House silver bill into an unalloyed free
coinage measure takes the country by sur
prise. The surprise is not caused so much
by the discovery that majority of the Sen
ators are in favor of unrestricted silver COIN
age-although in that respect the revelation
goes beyond public expectations-as that
they should insist upon q measure which
bids fair to defeat all silver legislation at
this session. 1t has been announced recently
that the President would veto free coinage
bill, and this was rather vaingloriously as
serted BY some of the organs to have ended
the free coinage movement The fact is
that the greater obstacle to the Senate's
measure lies in the House. 1t is probable
that, if the Senate insists on its measure,
it will amount to having no silver legisla
tion this year. Possibly some of the Sena--
tors, who imagined themselves to be making
political capital BY voting for the bill may
have had some such result in their minds.
1t can hardly be disputed by any, except
those who favor a depreciation of the cur
rency, that the interests of the country will
be subserved by the defeat of such a meas
ure. What will be the effect If the Senate
bill should become law? Anyone who has
silver bullion could take it to the mints and
receive Its equivalent in silver dollars.
The DISPATCH has heretofore pointed out
that the increased yoinage of silver dollars
as proposed IL the other bills might bring
the country gradually to silver basis. But
this measure does not propose to await any
such gradual operation in shortening the
yardstick. 1t would make the bullion value
of the silver dollar the monetary unit at
once, and permit all payments to be made
in the reduced standard. The present mar
ket value of the silver in dollar is about 80
cents. Possibly the increased use Of silver
might enhance the price of bullion; but that
it would raise it above IS cents can hardly
be expected, from the movements Of the sill
yer market during the past twenty years.
The result would be that with this measure
in force the unit of values would be low
cred Is per cent, gold would be demone-
tized in this country by being sent to pre-
MUM, and eve,s holder of a note, bond or
mortgage or bank credit in the country
would have Is per cent of his claim taken
from him for the benefit of the debtor.
THE DISPATCH has already recognized
that there is some foundation for the claim
that the gold standard has been steadily ap-
preciating during the past few years, and
that conservative measures to gradually re-
verse the operation might be well worth try
ing. But the sudden and radical reduction
of the monetary standard 10 the silver basis
is at variance with all rules of policy or
justice. In the first place, it would produce
a sudden initiation which would be taken ad-
vantage of by the spectators. In the sec
ond place, it would take away consider
able share of their property from class
which ought to be protected, namely, the
small creditors. No idea is more vicious
and unfounded than that when the
a loss to creditors and gain to debtors, the
masses are benefited thereby. The great
millionaires will share in the gain by the
enhancement of their railroad and manu-
featuring properties more than they will
lose by the relative depreciation of their
credits and bonds. The silver kings will
reap a direct advantage. But the unmiti-
gated loss will fall upon the class of small
investors, which it is the policy of demo-
cratic system to encourage. The holder OF
a $500 railway bond will by such measure
lose SIS, to be handed over to the railway
corporation. The working man who has
s., 900 in the savings bank will be amerced
S15O for the benefit of the man who borrows
from the savings bank. To levy upon this
class for the benefit of the debtors, large and
small, would be an injustice which no
sophistry can excuse or no seli-interest make
good.
Yet that is the inevitable result Of such a
measure as the Senate has enacted. A care
full and steady effort to gradually increase
the use of silver might avoid these evils;
but the passage of the Senate bill is direct
and open avowal that the majority of that
body desires to bring the currency of the
country down to the silver basis and accom-
plish exactly that result.