The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-12

proportionste to our growth In population i is
imperstiyeiy demanded. The issue OF
ss sss. .uc note. o1 Increase Of per-
fectly convenient aud sound currency,
based dollar for dollar upon the cost value OF
silver bullion, redesmable on demand In golo
coin. and with the pledge Of the government to
maintain it ut par. -
Another object OF the act was to provide .
home market for the silver product Oh the
United states by requiring the purchase OF q
quantity OF silver approaching the monthly
product OF our mines. Under the operations OF
this law silver advanced from 30 cents per nns
ounce on January l. 1880, to Sl2l on August -,
1890. That il has again refrigerated In price Is
owing in part to the fact that because
in the purchase OF silver, both as TO the guam
tity purchased aud the price paid, large
amounts OF foreign silver were attracted 70
this market Other causes which / cannot en-
large upon operated to produce this result,
prominent among which is the large falling OF
in shipments OF silver to India and
China The shipments OF silver from Lon
don TO India during the first nine months OF
the present calendar year show reduction
of 81, 900 as compared with the same period
OF the prior year, while the shipments OF SILVER
to China snow even a greater decrease. Il is
claimed by those eonversant with the product
and movement OF silver that when the visible
stock upon our market was disposed OF by the
monthly absorption OF 4,500, 900 ounces OF silver
by this government, ii will have tendency to
efectualiy and permanently steady the price oil
that metal. III the reconciliation of silver as
full legal tender money is ever to be accomp-
iished, it can only be done by the action
of nations of sufficient commercial Importance
to maintain some fixed ratio OF coinage between
the two metals. The new silver act is an I'M
portant step in that direction:
Firs,-Because the compulsory coinage and is
sue OF silver dollars of less intrinsic value than
their nominal value lie repealed.
seeond-Because it provides for much
larger absorption OF silver by this country than
heretofore for currency purposes; and
I .Third-Because the new law declares that 1t
is the established policy of the United States to
maintain the two metals at parity with each
other
1t seems to me that the act under considera-
ton is decided improvement upon the provis-
ions OF the act OF 1873, which 1t repeats in that
1t furnishes sound currency TO meet the grow
ing wants of our country and has tendency to
reduce The difference in value between the two
metals apd thus help restore the equilibrium SO
much desired.
The topic of discussion today was: ''The Bank
ing System and the Currency of the Future"
George S. Coe, of New York, opened the discus
sion with an able paper on the matter. John
Jay Knox read lengthy and able paper on the
same subject. In the course of his speech he
devoted some space to the question OF perma-
nent national banking circulation, presenting
in a somewhat modified form the proposition he
laid before the committee of the house of repre-
sentatives two years ago
Professor Hadley, of Yale, read paper upon
recent railroad legislation aud its effect upon
finances. He said whatever causes shrinkage
on railroad values is of Importance to inan-
ciers, because railroad securities are more i'm
portaut than any other line of investments. A
loss of one per cent. in the interest OF railroad
securities means a fall in the capital valuation
greater than the whole wheat and cotton crop
OF the country. Since the passage of the inter-
state commerce law the systems west of Chicago
have shruuk in value $50 900. COO or more than Is
per cent. of the par value of their stock. The
interstate commerce law, which had been sup
posed to be the end OF the struggle for railroad
control, was only the beginning. Individual
states went further and did many things with
less wisdom than the interstate commerce COM
mission. Finally, the prohibition OF pools pre-
vented railroads from taking measures in self
defense. The result of such legislation is shown
in the almost entire stoppage of railroad con-
s,ruction, as in state like Iowa, whose legisla-
ton had been reckless Local shippers want
low rates, but they still more want plenty of
railroad service and will not persist in legisla-
ton which will prevent them from getting it.
1t is to a process of this kind, the shippers
needs, rather than to the action of courts, that
the investor must look for protection.