New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-25
THE QUESTION OF SILVER COINAGE.


Some of the most anxious inquiries addressed
to THE TRIBUNE originate in failure 10 reau
is utterances with care Thus correspondent
quotes Uhis paper as saying that - gold Will go
out of this country in the event OF increased
coinage of silver. and we shall have only cur
rency based on the present bullion vaiue OF
silver" TIE TRIBUNE has claimed that I'M
limited coinage of silver would produce these
results. As the present purchases Of the Gov
eminent are about equal to the annual produc-
ton OF silver by American mines, increased
coinage beyond the quantity OF silver now pur-
chased would tend to produce the same results
But it is OBJ yious that limited and small in
crease of coinage within the measure OF the
present Purchases by Government would not
necessarily have any effect whatever. Never
theess, certain questions are submitted by the
same correspondent which deserve especial at
tention:
The basis Of our circulating Medium being gold and
silver CON- gold being te largest part, If from any
cause this gold is drawn out of tile country must not
silver supply It's place and perform its iuncuonsi VIII
not thi, require more silver coin, and enhance the
bullion value of that metal
The confusion of thought here is common
one Gold and silver coin are not really " the
basis of our circulating medium" because re-
demption of no part of our circulating medium
is ever desired in silver. Some gold coin and
some silver coin form part OF the circulating
medium. The only actual basis for all the rest
is the gold coin. If that should be drawn out
or 80 far exhausted that the Government could
no longer pay in gold on demand, the basis
would instantly change from gold com to silver
Il
premium. and the paper in circulation would
have no other basis than silver coin, and no
greater value than such coin. No more silver
coin would be required in that case than is now
used, because Inconvenience prevents its use in
large quantities, and the people who need gold
coin would pay premium for it, just as they
did between 1861 and 1879. Again the in
Quirer asks:
Does not the decline IN tho product Of our gold
mines, which amounts 10 but about S12 100000 an
nuay over and above needs in the mechanical arts,
an amount only Onequarter what 1t was In 1S63 when
our population haf what 1t IS now, prove that We
cannot depend upon gold alone 10 maintain our cur
rency OIL a specie basis
This question is based upon misinformation.
The production of American gold mines last
wear, according to Mr.. Valentines statement,
L
in either of the years 1S81--1SS6 inclusive,
about what it was in 1879 and 1880, and only
So, O0O, 900 larger tnan it was in 1870. There
are in existence only estimates OF production
for years as early as 1853, and estimates no
where considered reliable, but the estimate for
that year happens to be S5,000,OO0 higher
than for any year before or since, and for that
reason it was probably selected by an anxious
inquirer The supposed amount in that year,
| S65, 900 900, was not four times but only about
| twice as large as the present known produc-
ton, and in those Democratic days coin was the
more needed because no National paper money
had been provided, and wildcat banks made
paper odiOuS. The present production is not
about S12, 100000 but about S15, 600, 600 in
excess of estimated consumption in the arts OF
which part is gold coin. Finally it is asked:
| As We require about $4o,O0O,OO0 each year ad
diaona money, in order to hold the same amount pei
CAPITA by reason of increase in population viii
not this together with the loss from exports, with
drawal and humiliation Of paper currency, and abrasion
and destruction OF coin, make the coinage Of our ent
product of both the money metals, which scarcely ex
cceds $50 OOO,OOO I'm value above Industrial con
SUMPTION the only way TO circulation on
| safe basis
Ii is not the fact that an increase in popua-
ton necessarily calls for a corresponding in
| crease in The circulating medium, nor would ar
increase proportional to the gain in population
be as much as $4,000, 900. But il NAV be
granted that some increase is proper, and Tho
purchase OF 54,G00,O00 ounces silver bullion
each year, and issue of Treasury notes against
that bullion, provides for greater expansion
of circulation than is necessary. The Motor
that the entire product of both the money
metals scarcely exceeds 1000, 900 in valu,
above our industrial consumption is another
error Silver bullion would be safer and bet
ter basis by far than silver coins which pretenC
to be worth ) 80 per ounce when they arr
actually worth only about 81 OIL per ounce. 1
would be readily accepted as better basis. 1