The morning call., 1891-12-11
THE PRESIDENT ON SILVER,

The position of President Harrison on the
silver question is so clearly put in the mes
sage that there cannot hereafter be an IN
certainty where the President stands The
President points out that the coinage act
passed by the last Congress has not accom-
plished all that was antIcipa ted from it. The
reason assigned by its friends for its neces-
sity was that it would have the effect of
bringing up silver to parity with gold, that
is to say, causing an advance in the bullion
value of the silver ounce to 81 90 As a
matter of fact the Treasury bought during
the fiscal year 49, 593 1l3 ounces of silver,
but at the end of the year the price of the
silver ounce was only 96 cents as against
an average OF 81 cents before the act was
passed.
Under these circumstances the President
urges that the law have further trial,
pending which no new legislation should be
attempted. II the act Of 1890 has accom-
plished no results in bringing the two pre-
cious metals together, it has done no harm.
To represent the silver bought by the Treas
ury, Treasury notes to the amount Of $50
574, $50 have been issued and are in circula-
ton. These are secured by deposits OF sill
yer recknned at the value of the day and
are as safe as actual coin. They have taken
the place Of national bank currency with
drawn aud Cancelled and are deseryedIy Doc.
ular. 1t would be dangerous TO attempt
new experiments with plan which seems
to work so smoothly.
AS was predicted at the time the act of
1880 was passed, the Treasury has bought
more silver than the mines produ ced, after
allowing the usual deduction for use in the
arts. Under the stimulus impaired to min
ing by that act, the silver product OF the
United States has increased 10 "a. 800, 900
ounces in twelvemonth. Deduct from this
100000 ounces used in the arts and the net
amount available for coinage Is AZ, 800, 900
ounces But the Government bought 49,
59S,113 ounces. The deficiency in the home
supply was made up by importations from
abroad. In the year $50 tie net exports
of silver from the United States were
SS.545,5j5; but in the year 1890 81 the i'm
ports Of silver exceeded the exports by
S2,745,16j. The effect of the act of 1890 is
thus TO divert the flow of silver from India
to the United States. at the present time
the amount so diverted is too small to affect
the exchange, and this promises to remain
the case in the immediate future. Should
the output Of our mines fall off, or should
any measure become law providing for an
unlimited coinage of silver, without proper
restrictions, the flow of silver would assume
proportions which might involve serious
consequences.
Those consequences were foreshadowed
by an export of gold, from February to
July, 1891. inclusive. of S70,000,0OO But the
movement was sporadic, and was quickly
checked by unfayOrable crop prospects in
Europe, and by the indications of an in
creased export of provisions as well as
cereals from this country. Nearly S28, OOO.-
600 of the gold exported has already come
back, and the flow Of gold westward will
probably last all winter, SO that the fiscal
year 1892 Will probably show n gain in
our gold coin reserve.
There is so much hard common sense and
plain truth in Mr.. Harrison's argument that
the extreme silver men, who have been
clamoring for free coinage, In order to raise
the price OF silver, ought now to subside.
There is Sl,577. 262, 07o of money in circula-
ton, or S24 50 per head of the total popula-
ton. 1t is very hard to determine what
should be the proportion of current money
TO population. Money is sometimes scarce
when the circulation is large, and easy
when it is small. Confidence, not currency.
rules the money market. But " 18th S24 80
of money tokens afioat, the country ought
to be able to get along; and by and by, per-
haps, something unexpected will happen to
help the silver-miners to grow rich as
rapidly as they think they ought