New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-12-21
SELECTIONS FROM THE MAIL
THE DANGER OF FREE COINAGE.
CORRESPONDENT WHO THINKS THAT CON.
GRESs WILL BE AMENABLE TO REASON.

a CORhEefUNDEST WHO THINKS Thai CON'
GREss WILL BE AMENABLE TO REASON.
TO the Editor of The Tribune.
Sir: Shall gold be at premium in 1892. rs 1t was IN
1927 In other words shall there be free coinage Of
silver which means a premium on gold Shall this
unwise measure become law in 1897 Under such
free coinage of silver the gold dorar might be quoted
for years at 125 and upward. What arc going to
do about It'll Nohing7 Why not try to prevent 1t
We can at least try There Is yet time, though Con-
gress meets on December 7, and will take action within
the next few months.
The majortes in Congress ready to vote for free
coinage have BEEN created by the persistent reeraon
Of erroneous Views. Can not these maiorities be won
over by insistence upon correct viewsi With the
case fairly presented to it, might We not count with
out fear Of disappointment upon the reasonableness Of
Congress / think Let US try TO persuade Con-
gress to take the wiser course Experienced members
Of Congress like Representative Henry Cabot Lodge, of
Mass and Senator Sherman, though opposed to free
coinage, concede that Congress will vote 1t; but they
confidently declare that President Harrison viii inter-
pose veto which cannot be oveidden. Is there then
no danger Of a premium on gold in 1907 Let us not
relax our efforts on account Of these hopeful assur-
In 1857 shortly before the panic the prcsi-
dents of banks Jointly declared their institutions
safe and secure" and able to sustain themselves
spece-paying banks.' Six days before their sus-
PENSION the general opinion Of the hour thus ex-
pressed by "The New York Herald" at Is absurd TO
suppose that the banks OF this city win ever, in q
body, suspend specie payments Three days earlier
II said Suspension Is utterly and entirely out OF
the question: 1t pointed to the bountlful harvest
with which God has blessed US q sign Of
relief But Natures bounty moro prevented the
panic IN 1857 than II will Of itself prevent free coin
age Of silver and premium on gold In 1899.
People were similarly surprised In 1861 On De
cembcr II Of that year our bank presidents declared
that there "no reason, Justification or necessity
for a suspension Of specie payments.' On the 10Th
they resolved to receive no money on special deposit
payable only in gold Nevertheless, the 30t they
suspended specie payments, and In addition to their
ordinary accounts payable ir current funds. opened
special accounts payable In gold which were not closed
for seventeen years during all OF which time gold was
at premium The day after suspension nearly every
body supposed and the newspapers said that the
premium on gold would be small and Of short Duration
Few persons to-day consider that the proposed Tree
coinage of silver would cause gold dollar to be
quoted somewhat as gold is quoted at present In
Havana and Buenos Ayres
Instead Of instituting I'm this country, through bad
laws, the unfortunate customs Of Cuba and the Ar
gcntine Republic to premium gold, Congress
ought to provide for the formation all over this con-
tnont Of international monetary union which would
enabe merchants to use for instance. bank checks In
and between all the countries Of this hemisphere Just
as they already such checks without discount or
premium throughout the United States and Canada.
Free coinage of silver would inure the silver miners
by ultimately lowering the price Of silver in London
count on silver on the Pacific Coast This argument,
It very difficult for the advocates Of free coinage to
hold their majorties together in Congress.
1t is grave mistake to regard Congress MS an I'M
reasonable body. have carefully studied the mechan-
ism O. legislation at Washngton-that IS, how bills
are framed, introduced, dlfed, and defeated or
passed. My first systematic inquiry into this matter
was in 1851 when 1 went TO Washington for this
special purpose and remained there three months.
Again, during the years 1884 to 1887, inclusive,
spent eighteen months constantly engaged in observing
legislative methods. Therefore, 1 am somewhat
qualified to judge to the reasonableness Of Con.
gess II is my opinion that II Congress votes for free
coinage of silver. as Senator sherman and Representa-
tive Lodge say 1t WILL the fault will be the neglect
Of New York to dissuade Congress from taking this
reckless step.
/ repeat the question, Shall gold be at premium
in 1892 as it was in 1892 II Is in the power of
Yorks merchants to decide. Active opp ton, IN
diligently conducted their part, would defeat the
free coinage Of silver and make all premium on gold
impossible in 1892. JAMES c. HALLOCk.
No. 10 Washington Place, Dec. 1, 1891.