The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-07-04
The Silver Problem.

Inc
Editor Call: Noting your editorial COM
ments on the silver problem, as discussed by
me in THE CALL of the 1st inst. you say:
Wages are not debts in the sense in which con-
tracts TO pay money are debts. Wages paid in
the currency OF the day Will be available. dollar
for dollar In the purchase of daily supplies.
If one man hold 200 shares of stock yield
ing dividends Of $1,000 per year, paid
monthly, and another works for wages, re-
ceiving $1,000 per year, paid monthly in the
same kind of money, are not the powers and
functions of the money received by each pre-
csely alike, and is not the wage-earner or
any other man as much and as directly in
terested as the dividend receiver in having
money that is absolutely sound by common
consent?
The writer well remembers when, after
the close of The war, it cost SIS United
States currency in New York to buy pair
of boots which could have been bought in
San Francisco for So gold coin. During
the war the discrepancies constantly fluct0-
atng between the purchasing power of the
currency of the country and gold coin, which
latter was adhered to as the circulating
medium on the Pacific Coast, were still
greater.
One of the present laws regarding the
coinage of silver, all of which, enacted since
tains the following clause:
1t Is the established policy of the United st ates
TO maintain tle two metals, l. e., gold aud silver.
at parity with each 0tEer upon the present
legal ratio, or such other ratio as may be pro-
Vlded by law.
1t is, of course, conceded that so long as
the coins OF the two metas.are practically in
Interchangeable, If wages are paid in silver
the bills of the butcher, baker, grocer, and
current expenses generally. may be paid in
silver without hardship; but if the parity of
value be destroyed then the wage-earners
would find that tile shopkeepers Of all
| classes had raised prices to meet the differ
| ence existing between gold and silver. The
| instability attaching to silver would newt
| ably dispose manufacturers. mercha nts and
| shopkeeperS to guard their inter estS by
| marking up their goods to meet the emer-
gency. As result every wage-earner in
| the United States would be paying increased
| prices to the manufacturers and middle-men
| without receiving in turn propOI Tomato
increase of wages, or in fact any increase.
| The GALS says: Tbs sound currency the
| country wants Is that which we possessed until
The money lenders conceived The idea OF increas-
| Ing HE purchasing power OF money by driving
| one-hai The stock out Of use.
Conining ourselves to the United States !:
| AT the time OF decentralization, 1S73-eighty-
| one years after the first coinage act of tn
| Government had been passed - there had
| been coined only SS,000,000 of silver dollars
and $Sl6,000,t00 of gold. Silver dollars had
| not, for as much as thirty-Lye years previ-
| Gus to demonstration, been an apprrclable
| factor in cur currency. As the actual cir
| culating medium of this country to-day is
| probably So per capita more than 1t was in
| 1873, when reconciliation took place. and,
| under existing circumstances all kinds of
money is "as good as gold, can il be claimed
| with fairness that mOnry-lenders conceived
the idea of increasing the purchasing power
| Of money by driving one-Ealf the stock out
| of use?
1t is surprising what an amount of
| rhetorical nunciatlou has been INDUCED in
| by the advocates OF the free coinage Of sill
| yer regarding what they, as rule,
| term the CRIME of demonetiZation" there
| fore word regarding it may not be amiss.
The facts OF the matter are probably
| about as follows: AS early as the begin
ming of 1871 It was suggested in San Fran
| cisco to DR.. Lindeman that the laws regard
| ing coinage, which had, say between 1887
| and 1858, been frequently amended by at
taching sections to the general appropria-
| ton bills, needed unlticatlOn. Ia order that
this, along with other contemplated changes
| regarding mintage, might be carried out
| most judiciouSly, these suggestions, to
| which were added others from officials of
| the United States Treasury Department,
| MINIS, etc, were printed and submitted in
| that form by the Department at Washington
| 10 Treasury and Mint officials throughout
| the country, as well as to outside experts
| upon coinage and kindred subjects, the De-
| requesting VI cdcl Il Iull CODSlutT-
| alton of the subject, and inviting further
! recommendations. This was complied with
| and IN the returns made there was largely
Dredomiuating concurrence that the silver
| dollar should be omitted from coinage. All
| these suggestions, pro and con, were ar
| ranged, printed and submitted in pamphlet
| form to Congress, 10 the officials of the
| Treasury Department, and also to people
| outside OF the Department, interested in the
| subject OF the precious metals, coinage, etc.
| The matter was discussed more or less
| in 1S71-72, and finally what is called
| the Demonetlzing Act was passed in 1873
| The actual time elapsing between the
| period when the sugg estlons Involving the
| omission of the silver dollar from coinage
| laws were first made here aud the consum-
| nation of the law was nearly three years.
| These facts, though perhaps not generally
! known, can be established by credible wit
| nesses, and there is now living in san Fran
| cisco a gentleman who can, if he chooses,
| and possibly lie will, give succinct MARIA
| ton of them, probably as ciTcumstantial and
! exact as any other person in the country
| could.
The writer believes in and advocates BIZ
| metallsn; that Is TO say, the maintenance
| of silver, by judicious restrictions, on
parity with gold, but does not believe that
| this parity could be maintained under unre-
| strcted free coinage of silver in the United
! States, Independent of the concurrence of
! the so-caled double standard nations Of
| Europe, and that Independent action would
| simply be t. change, by disturbing the pres
| yer, the basis OF our currency, with all the
| mischievGus tendencies it would entail, and
! invite disaster to the country.
[ ITO1lciscO. IN 2 1871