Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-14

/ portiouate to our growth IN population, IS
| imperatively demanded. The issue of
! treasury notes under this contract affords
/ such an increase of a perfectly convenient
! and sound currency. based dollar for dollar
upon the cost value of silver bullion, re-
deema bic on demand in gold coin, and with
the pledge of the government TO MAINTAIN
| it at par.
! That this addition to our circulation has
proved beneficial was forcioly exhibited
during the spring and summer OF the present
year, when. through the necessities of
| Europe, gold was Withdrawn from this
country in large quantities, aggregating. in
a brief period of five months, over So, 0OO,-
000. But for the substitute provided for
domestic trade in the form of treasury
notes, issued by the government in the prr-
chase of silver bullion, it is probable that
this country would not have been able to
stand this enormous drain of gold without
producing stringency in the money mar
ket and serious business disturbances.
Another object of the act of July ii, 1890,
was to provide a home market for the sill
yer product of the United States by requir-
ing the purchase of a quantity of silver
approximating the monthly product OF our
mines.
That it has again retrograded in price is
owing in part TO the fact that because of the
liberal policy exercised by the treas ury, as
required Dy law, in the purchase of silver,
both as 10 the quantity purchased and the
price paid, large amounts OF foreign silver
were attracted TO this market.
Other cases, which l cannot enlarge
upon, have operated to produce this result,
prominent among which is the large falling
of in the shipments OF silver to India aud
China The shipments OF silver from
London to India during the first nine
months of the present calendar year shows
a reduction of over 81. OCO.OOO as compared
with the same period of the prior year,
While the shipments of silver TO China
show even d greater decrease.
1t is claimed by those cOnversant with the
product and movement of silver, that when
the visible stock upon our market Is dis
posed Of the monthly absorption OF $780,
OOO ounces of silver by this government
will have the tendency to effectually and
permanently steady the price OF tnaJ metal.
If the reconciliation of silver. as full
legal tender money is ever accomplished, 1t
can only be done by the action of nations Of
sufficient commercial Importance to main
tain some fixed ratio III coinage between
the two metals.
That this large absorption Of silver by
the government for currency purposes
would cause rapid enhancement in the
value of silver was very generally believed.
Indeed, it was hoped that the increase in
the value OF silver under the operations of
this law would be so great and of SO perma-
nent i nature that point would soon be
reached when we could with safety open
our minis to the free coinage of silver.
Under the operations of this law silver adj
vanced from 50 cents per fine ounce on the
LIST of January, 1880, to sl.2l on August 10,
1890.
The new silver act is an important step
in that direction: |. Because the cOmpul-
sorry coinage and issue of silver dollars of
less intrinsic value than their nominal
value is repealed. 2. Because it provides
for much larger absorption of silver by
the country than heretofore for currency
purposes. And 3. Because the new law
de lares that it is the established policy
of the United States to maintain the
two metals at a parity with each other.
1t seems 10 me that the act under considera-
ton is a decided Improvement upon the
provisions of the act of 1875 which it re
peals in that it furnishes sound currency
to meet the growing wants of our country
and has a tendency to reduce the difference
in value between the two metals and thus
help restore the equilibrium so much de-
sired. Very respectfully,
CHARLES FOSTER, Secretary.