Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-01-29
Mr.. Royal on Silver Money.
RICHMOND, Va, January ~, 1891.
MILL

hlCBmOND, VA, JduuhIr az, loSl'
To ne Editor of the Dispatch:
Colonel Whitehead says have not dis
cussed the two questions on which he
wished my. views-viz., Silver and the
Farmers Alliance proposition for currency.
If the public will stand it l will cheerfully
furnish them on both.
The four cardinal facts are known by so
few people that l must ask pardon for
stating them again. Under the laws of the
United States gold dollar contains rs $40
grains; silver dollar 4l2If grains-one Is
worth twenty cents more than the other at
the jewellers, and free coinage means that
our minis will give dollar of silver tor
every 4l25% grains from whatever part of the
world brought, which shall have the same
paving power as the gold dollar OF 20 $40
grains. =.
This being so, when any great quantity of
silver dollars have come into circulation
gold dollars must cease to circulate as cur
rency and become O commodity for pur-
chase. No man in his senses is going to
give O 25 $40 grain gold dollar in exchange
for a 4121[-grain silver dollar when there IS
really difference of twenty cents between
the real value of the two. That no dis
turbance of values has taken place up to
this point is due TO the fact that the num-
Der Of silver dollars 80 far coined is not
large enough to affect transactions. But
free coinage will make the whole world
dump its silver on us, because 1T can re-
alize profit of twenty cents on each 4l211
grains, and then the enormous quantity of
il must make gold disappear. This would
seem to be- too obvious for argument,
but may cite two facts as proving it: A
gentleman who is very large lender OF
money in this city has provided IN every
loan that he has made SINCE the furry IN
Congress over free silver last spring that
the principal and interest shall be payable
in gold coin. This is lawful. Bronson us,
Rodes, 7 Wall. Every prudent lender will
do the same as events develop. The New
York Euening Post for January 10th con-
tanned list Of all the railroad mortgage
bonds listed on the New York Stock Ex-
change the principal and interest of which
were payable in gold coin. This is tor the
benefit Of the wary, and you may TEST as
sured they will avail themselves of IT,,
What result must necessarily follow?
Our currency must become exclusively
silver currency of the 412H-grain dollar.
Well, how will this affect mattersl I'm
doubtedly If we can by coming all the sill
yer that is brought here make 4121f grains
of il worth as much as 26 $40 grains OF
cold no harm will be done. But how can
we hope to do thisf 1t Is estimated that IN
normal times the country has no need for
more than something like $l,OOO,OOO.0CO.
Suppose we aSsuut Iuhb We Chh WIN"
ont repletion take $4,000, DOC, 0O0-which
would be violent assumptions IT
possible TO suppose that 81, Zoo, 900, 900
is all that will come here? 1t must
ba recollected that we have the worlds
stock to draw on, and so long as q cent
can be made by bringing it here 1t will
come. Baby cups, frying-pans, harness
ornaments, hghtning-rod tips, wash
basins-everything that has silver attach
cd will come here to receive q dollar FOR
each of its 4l2h grains. From Dr; sehile-
mans silver, buried by Priam at Troy, 70
Che last ingot mined in Mexico, all OF II
will come here. How can we hope TO md
currency employment for all OF thlsr We
cannot, so that silver must always remain
at discount until the supply decreases OF
new uses are found for it. We could not
And currency employment for all the gold
In the world If il were ali dumped on US.
We may, therefore, take 1t az foregone
conclusion that We cannot make sllver
more valuable than II Is by free coinage.
How. then, Is this debasing OF the cur
yanoy TO affect mattersg For future trans
actions II may possibly work without Sc
rious friction, but for past transactions the
result must be most disastrous. Inc COL
Zee merchant must continue 20 buy his
coffee With gold, and he must pay pre-
m,um OF 20 per cent. for the gold. he
mnst add 20 per cent. TO the price at which
b1 row sells coffee 70 reooaip himself TINS.
The widow and orphan whose support De,
nentfs upon the interest from an innerited
Investment find their income cut down
one fifth In its purchasing. power, and the
price Of what they muat puy run up one