Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-22
MORE QUESTIONS ON SILVER.

negro.
MORE QUESTIONS ON SILVER.
A correspondent who evidently is dissatis-
fed with The DIsPAToH's position on the
silver question, because it does not 20 to the
length Of free silver coinage propounds the
following queries:
To the Editor OF The Dispatch:
We have read your editorial anent silver, and
are not yet enlightened. Is not the prod uction
Of gold in the United States (reckoning in dol
lars) about one-half that of silverf Under
existing laws isn't gold given an artificial value
out Of Its proper proportion above silver? Is
not the volume of business increasing to such
an extent that the single gold standard will be
insufficient to meet its wants? Has the in
| creased volume of currency in the United
States kent pace with the increased volume of
! business?
Ii you answer no to the last query. which we
believe you must, does not the maintenance of
! existing laws, the partial demonetization OF
silver. the single gold standard, and con-
traeted currency, taken In connection with the
greatest volume of business the country has
| ever experienced; inuIe only to the benefit Of
money-lenders; and is there not good ground to
fear that credit expansion rather than in
creased currency may precipitate a financial
crash?
1-As to the relative production of gold
and silver, the statistics Of various authori-
ties vary slightly, but they practically
agree IN making the production of gold
about three-ffths that of silver in the
United States instead of one-half, as stated
by our correspondent. In the whole world
the most authoritative figures place the
present production of gold at about four
fifths that of silver. From 1881 to 1888 the
worlds product of gold and silver was
about equal. and before that the production
of gold was greater than that of silver for
many decades.
2-THE DISPATCH has frequently stated
that considerable share of the difference
in bullion value between the gold and sill
yer dollars was due to an appreciation in
gold caused by mono-metallic legislation.
3-Whether the volume of business has
increased more rapidly than the volume Of
currency depends on the periods which are
selected for comparison. As compared with
the period before the resumption of specie
payments, the increase in the volume of
currency caused by the addition of over a
thousand million dollars OF gold and silver
is undoubtedly the greatest. Of late years
the increase in the volume OF business is the
greater. That this change is likely to make
the single gold standard insufficient to
meet the wants Of business is only measurably
true. The fact that business of immense
vo1up,a M N ha rorso,fod xr;tbouf tba ootuo1
transfer of gold and silver is shown by the
fact that last week the clearinghouse ex-
changes of the country were by themselves
in excess Of the entire stock of gold and
silver. By means Of such exchanges an
immense enhancement of business can be
transacted without involving the actual use
OF much more coin or legal tender notes.
But these exchanges must rest on bank
credits. and the narrowing of the reserve or
basis furnished by coins or legal tenders in
proportion to the volume of credits doubtless
has a tendency to stiffen the money markets.
A purely credit expansion which creates
such stringency, if it does not check itself
in time, undoubtedly carries with it the
danger of panic.
1t will thus be seen that each allegation
Of fact made by our correspondent has a GER
tain degree of foundation. It is the recogni-
tion of these facts which has made The
DISPATCH support conservative measures
looking toward an enlarged use of silver,
without reducing our business to the single
silver basis. But such a measure as the
Senate has passed carries a very
different result from the equalization
of gold and silver and their joint use. Un-
til values are readjusted to the silver basis,
every owner of silver bullion can get 80 per
cent more than the present value for it by
having it coined into silver dollars, and as
the United States produces little over two
fifths of the silver of the world this implies
an immense influx OF silver from other coun-
tries When prices are adjusted to the
silver basis. gold will advance with every
thing else, and people who make much OF
the question Of the volume of currency
should reflect on the effect of having over
500, ,000,0OO of gold demonetized by being
sent to a premium.
Beyond the indefinite possibility of the re
moval OF such large share Of our coin
from use in trade, at period of general in
fation is the fact that the sudden lowering
of the monetary standard to the level of
silver means the coniscation of percentage
of the property of the small investors of the
country, the depositors in savings banks
and the holders of railway bonds for the
benefit Of the debtors. These considerations
show the danger aud wrong of such meas
ure as the Senate bill beyond question.