Los Angeles herald., 1890-04-13
SILVER PROBLEMS.

silver by weight shall equal one part by
weight of gold. But what do they avail
The moneyed interests of these United
States are opposed to bringing any such
thing about, and naturally so, for were
it done the National banks would be in
jured in the circulation of their notes
part of their business would be gone.
In this connection the question pre-
sents itself: What great good to the
United States will result by bringing
silver back to par? The answer is that
in the United States silver mines are
numerous and rich; that at present the
owners are indisposed to work them,
because the benefits attending their sue
cess do not justify the risks of failure
but they would be stimulated to take
these risks were silver at par. An ex-
tended market generally brings about an
increased production.
On the other hand, it is argued that
bank notes secured by the Federal Coy
ernment have served every purpose of
internal commerce for more than quar-
ter of century, and that the people Of
the country east of the Rocky noun
tains, having been educated to the use
of them, want nothing better, notwith-
standing the fact that they cannot resist
either fire, water, acids or exposure to
the elements, and the further fact that
the people of all the States are taxed for
the purpose OF making the issue of the
banks surely redeemable. So long as
the majority is satisfied, it will have its
way, and the minority must abide it's
time.
Whilst one can admit the above, one
may yet inquire if the reversion of the
process which established the National
banks would not replace silver in circu-
lation generally, and thereby bring it
back to par 15a silver-1 of gold.
1t will be remembered that Mr.. Chase
of Ohio, Secretary of the United States
Treasury under Mr.. Lincoln, originated
and successfully carried through the
legal tender scheme, although he de-
clared the law making these notes a
legal tender unconstitutional when he,
as Chief Justice of the United States
Supreme Bench, handed down the opin-
ion of the Court on that matter. Now
these banks came into existence when
gold was merely an article of commerce,
as also silver, and strange as it may
seem, the latter metal disappeared from
circulation as effectually as gold, not
withstanding that one would have ex-
pected it to hold its position for the pur-
poses of small change. The result was
that along the Atlantic coast, in fact
over all the States excepting those of
the Pacific coast, fractional paper cur
rency was put into circulation, and
the notes over one dollar and
less than twenty dollars in value
represented the bulk of the circulating
medium. All this happened years lang
syne. Since then the people have had nc
reason to complain of losing money by
the failure OF National banks, if we ex.
cept the negroes of Washington City
who were swindled by an institution o.
the kind run by the truly good. True
they, the people, pay interest on the
bonds which are deposited with the
United States Treasurer to secure the
issue of the banks; true immense sums
are destroyed yearly by fire, water, etc.
true that large amounts of notes actu-
ally wear out and never are presented
for redemption. But what is all that to
the American people? What are they
here for except to pay taxes? And pay
= ing them why should they not have the
privilege of eliminating their earnings
in destructible paper rather than in in
destructible metal? Everybody to his
taste.
But were the process reversed; were a
law passed prohibiting the coinage
of any gold piece of less value than
$40, or OF bank note of less value than
$50, what would be the result?
As ninety out of one hundred trans
actions are for amounts less than $40,
it would follow that silver would i'm
mediately play the part in the retail
business of the country that is now
played by bank notes, and it is very
doubtful whether there is silver enough
in the country, coined and uncoined,
even if it could be put Immediately in
circulation, to serve the purposes of the
people.
Again, were the Federal Government
to say to it's employees: Gentlemen,
henceforward you will receive one-halt
your stipend in gold, the other half OF il
in silver.-N. B. designations are in
order what would be the effect?
Other plans could be devised to put
silver into general circulation, and, once
q demand for it created, the enhance
ment of its value follows, and as il
reaches par the public is blessed in two
ways-the one in having a metallic cur
rency, the other in being freed from
columns of nonsense on bimetalism.
But, whilst the impartial will prob
ably agree that the result desired might
be obtained by simply giving silver the
advantages which were accorded the
issue of National Rbank notes, it seems to
be too much to expect Wall street ever
to consent to it; land, Wall street refus-
ing, what can Congress do?