Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-04-25
THE QUESTION OF MORE MONEY.

the stock market. From present APP
pearances there is every probability that
congress will pass bill providing for de-
posits or domestic silver bullion, and the
issue of notes against the bullion value
thereof, Tedeemable in lawful money
of course such measure means nothing
short of general imitation: imitation in Sc
curities as well as merchandise; infla ton
which Mr.. Window had carefully en-
deavored to guard against. The de-
mand, however, for expansion Of the
currency is too urgent to be ignored.
With many the question is more the re-
suit TO be obtained than the method en-
ployed. Too many think the end justi-
fies the means; and as the plans of the
silver barons appear to satisfy this de-
mand, no matter how unwise they may
be. they receive support which they
could not otherwise command. The eff
feet of adopting present propositions for
| practically unlimited silver coinage will
inevitably be to stimulate speculation
and raise values to higher level, I'M
| til the point of reaction is finally
| reached. How far distant that may be
no one can tell; but the country is max
ing such rapid and energetic progress
that the day of reckoning Is likely to be
postponed to later date than expected
by those whose soundness of views had
led them to anticipate earlier punish
| ment, and who, for the same reasons,
have too easily become pessimistic in
their opinions. It is to be remembered,
also, that very large section of the
country has been anxiously seeking this
ignis fatuus of unrestricted silver coin
age, and the greater their success in
finding it, the more exultant will be
their consequent actions. The delusion
will lead to all sorts of expansion, and
nothing short of experience will prove
folly which will never be admitted until
the draught has been swallowed. We
can only liken the situation to the in
citrate who ignores the consequences of
indulgence until the after effects of de-
baueh bring him to his senses. Mean
while, shrewder men see opportunities
for speculation which they will not neg
lect, and the stimulating effect of any
possible silver legislation is not likely to
lose its force for want of assistance. For
a period, therefore, we may expect to
see a general upward movement which
will not be restricted to Wall street.
Silver has been active, owing to in
creasing speculation in London, where
the price has touched 461sd. One reason
for the advance there is that the Bank
of Bengal, Calcutta, rate of interest is
u per cent. AS this bank occupies a
corresponding position to that of the
Bank of England this high rate has an
important influence upon the silver mar
ket. The rupee being in active demand,
this partly accounts for the recent heavy
shipments of silver from here 10 London,
the average of which has been about
800, 900 ounces per week for some time
past. Silver has been steadily declining
since 1878, when the price in London was
nearly GOD. Since then the fall has been
gradual, until recently it touched 4Od,
the chief cause of depression being the
accumulation in the United States. At
God per ounce silver is on par with gold
at ratio OF sixteen parts of silver to one
of gold. The price is equivalent to 129 |
cents per ounce here, our silver being |
1000 fine. The United States govern |
ment now holds sos ZOO, 900, against |
which silver certificates are outstanding |
for all except SIG 200, 900, which latter |
amount can be put into circulation. AS |
it is not unlikely that congress will at |
least increase the compulsory coin |
age from 1000 200 per month
to 81, 500, 900, the last figure
would about absorb this country g
entire product of silver. For a long pc
rfod the price of silver bullion certificates
has nominally ruled at ninety-six on the
stock exchange; but owing TO the export
demand and prospective legislation tn e
price has within few days advanced
beyond lo2. Speculation, however, is
restricted by the small available supply
outside of the treasury. If the silver bill
be passed and exports consequently
stopped, the tendency will be to transfer
control of the silver market to New
York. This will certainly be favorable
to American interests, for the aim of
is invariably to depress silver in
order TO cheaper the cost of making the
rupee, which, whether composed of sill
yer bought at forty pence or sixty pence,
buys IN India the same amount of wheat
and other products. Consequently, the
dearer the rupee, the less grain India is
likely 80 export, and the better the de-
mand for American wheat, which has
suffered so much from the competition of
India. In this connection, it is interest
ing to note how widely silver is used in
coinage. China, with population of
over 400, 900 600, and India, with pop
ulation of nearly 300, 900 900, use silver
as their Drincipal basis of coinage Of