The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-06-14
PAYMENT IN GOLD.

Many Eastern capitalists have during the
last few weeks declared for gold payments.
They pretend to be afraid Of tile Farmers
Alliance, Peoples party, or whatever the
name of the new party may be. Capitalists
in New York, Boston, Philadelphia, and in
some more Western cities refuse to renew
mortgages without the insertion of cause
providing that principal and interest shall
be paid in gold. One representative money
lender is reported as saying:
All large obligations that are undertaken now
and have been for some time past have been
made payable, principal and interest, In gold
coin. This movement is due In a large measure
10 the disturbance in values that Is expected by
silver legislation; not that gold will be at pre-
mum. but that other currency will be debased.
Gold is never at premium. II gOlG Is at loo
and silver or notes is only 70, then tile latter is
debased and is not Of the same value of gold.
When the attention of this capitalist was
called to the fact that Congress had pro-
vided that silver and silver certificates
should be taken in payment of all debts,
public and private, he said that money
lenders relied upon the Supreme Court de-
ciSion. which affirms that when specific
commodities are the consideration for the
performance of a contract then payment
must be made in those commodities. In
other words, if a borrower agrees 10 pay in
gold coin the courts will enforce payment in
gold coin. The statement that gold is never
at premium is made without due consider
alton Of the power of Congress. 1t is made
on the assumption that money-lenders have
the power to establish a standard other
than that which Congress has authorized.
While courts may enforce the payment Of
gold in all cases where such payment is es-
pecially stipulated, they cannot prevent the
hand-tO-hand business of the country being
done with the currency that Congress de-
clares to be legal tender for all debts. Or
diuary business transactions ara not re-
duced to writing. A tore or hotel may put
up the sign of gold payments required"
but this will not prevent payments being
made in silver. Possibly a majority of Gus
toners would observe the requirement, but
if one chose not to the proprietor would
have no redress. If Congress should pass
free silver coinage act and the President
should sign it, all the business of the coun-
try that may be termed cash will be done on
a silver basis. Any private establishments
that choose to set up the gold standard will
have to compete with others equally good
in which silver payment will be accepted.
In the end the gold house would be crowded
out In all branches of business silver
would be the measure of value and medium
Of exchange. 1t is absurd to say that in
such a condition gold would not be at
premium. Gold would be bought in the
market to meet all obligations that could
not be met with silver 1t is not supposed
that the movement of capital to secure the
Insertion in notes and mortgages of a clause
requiring payment in gold coin will stay the
force of the silver movement 1t will prob
ably induce men who would have been con-
tent to wait the rise of silver to its gold
value, before insisting upon free silver coin
age, to join forces with ths present adVO-
Gates of free silver.