Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1891-02-12
Another Danger to be Combatted.


we must address ourselves to the task of
thwarting the evils of every class Of our
citizens and especially to those who de-
pend upon the labor of their hands for
their daily bread, which must attend the
adoption of a silver standard for all
values.
The intelligent self-interest of our
citizens must be aroused, and without
delay, to combat this dangerous assault
upon their welfare, and it would be well
if the following article from the London
Economist should be carefully studied
by every man in our midst:
1t has become fully evident that the Free
Coinage bill which has passed the United
States Senate will afford cause for another
fierce struggle on this eyer-troubesome
subject during the current year. Last year
the free-coiners won material extension
of the American silver coinage, and, for
the time being wild gambling drove up
the price of the metal, until in August the
| equivalent of about BOD. per ounce was at
| tanned, Then came the inevitable reaction,
until in November the price had fallen
| back to very nearly its level of January
monetary crisis which assaulted London
and New York almost simultaneously,
and there was subsequently, recovery by
the end of the year to nearly 4Sd., the net
rise of about 3D. per ounce on the wear 1870
| being fairly attributable to the increased
absorption caused by the Silver act of 1870.
But the silver party, having obtained this
| instalnlent of their desires, have but had
| their appetites whetted for further legisla-
| ton; and in the Senate where the Western
States and Farmers Alliances are unduly
| powerful, they have carried their free
coinage measure with what, to foreigners
at any rate, appears almost unseemly
haste. This bill, us we explained last week,
| provides that the United States dollar shall
consist OF either Ala grains of standard
| silver, or 20 $40 grains of standard
gold-a proportion of roughly, 16 to /, the
same us provided by the 'Blandh act OF
lS7S-and that thereafter any owner Of
silver or gold bullion may deposit the
same at any mint in the United states to
be formed into standard dollars or bars for
his benefit without charge, Ii the Senate
had its way, this would become forthwith
the law of the United States; and before
| considering the various compromises slg-
gested SO as to bring the two parties in
Congress into harmony, it will be well to
indicate what the enactment of such a free
coinage measure i'll America would mean
At the present time, silver, duly in
tluenced by the increased coinage in the
nlted States, is worth in New York about
Slu45 per ounce standard fnine-tenths
tlneli or as the quotatation is recorded
Slo44 - lU0 ounces and the Treasury
makes its purchases at nearly one per cent.
above the New York current quo-
tation. This proportion is equal to
459 grains of silver to the dollar, or to
proportion OF Ia to |, instead Of the
proposed ~ to l. The effect of
the free coinage Of silver would be to
reduce the dollars worth of silver from its
present 459 grains to 4l24 grains, drop of
about ~ sper cent, and Il corresponding
rise i'll the American quotation would
inevitably be the result. Bit the United
States, powerful as it is, cannot in this way
permanently raise the price of silver by
10 per cent. At present the 100000
ounces purchased monthly for coinage
purposes is a known quantity, and il is
bought at the market price the United
states government pocketing the profit OH
the coinage. Roughly about S55,00O, 900
(say I'll 100000 is added TO the American
| currency annually by this measure. and
with the rapid development of the country
generally, il is quite possible that the
| people may be taught To stand such an
expansion for some years without material
depreciation being shown. But this new
|
merely question of 4S,00OOU0 ounces per
ahnum; The worlds production is quite
! two-and-a-hdll times that quantity, and Il
rise of 10 per cent may stimulate it to three.
or even four times that limit. The United
| states mint must be prepared to com
double those 1S,010,OO0 ounces, and for
y time, at any rate, even more
effect last summer of the passage
| Of the limited Coinage Act Of lS5U2 our
Indian and China trades were greatly dis
| organized, and there can be little doubt
| that had the price of silver as measured
! by its eXchangcable value, been nerma-
nently raised sc should have seen i stop
page OF silver shipments to the east, very
/ possibly even a return flow Of the metal
| towards the United states Silver legis-
lators should not lose sight of the fact that
! when the great fall in silver took place in
| 1876, it was Asia which stepped into the
| breach and by taking E2S,UUOuD from
| the European markets in two years stayed
| the downward course Of the metal. Ii we
i only look back 2Oy years, it is apparent that
1 Europe has sent much over eljU0OU. OOu
4 worth of silver To Asia, and it has only
been its great depreciation here that has
] permitted such q vast sum to be trans
\ ferfgd to India and China And ii the
east We're to become seller Of silver to tile
j nlted states, the American minis would
soon Dc - completely choked that the
/ rec .t elhage Act would very speedily end
Y Y tile lasco u y bound sooner or later 70
20;
silver production has greatly increased
q Ilte years, not alone in the United
states, but n many other parts Of The
] world rs we'll. Even IN Australia, where
4 live years ago practically no silver was pro-
ulleedt tAsfe Is now an annual output Of
many millions % ounces, and there can
be lltt!e hesltittioh ~ predicting that rise
4 q ~ PSF cent II the market price would
result IA lurthGr considerable expansion
q the output The result must be that il
INC Ihlted States llnalded should offer ~
l!er cent more tilan the rest Of the world il