The morning call., 1892-03-22

THE SILVER DEBATE.

The House win to-day commence a pro-
tracted consideration of the free silver COIN
age bill submitted by the Committee on
Coinage. The bill does not simply provide
for the free coinage of silver, but also for
the conversion of silver bullion into cur
Tency by an Issue Of certificates at coin
rates. With the present mint facilities of
the Government silver could not be coined
in excess of about S4 000, 600 a month, but
with the certificate provision attached there
is practically no limit 10 the conversion OF
silver bullion into curr ency. Under law
which issues a paper dollar against every
371.25 grains of pure silver which may be
offered redemption in silver must be OPP
tional with the Government. The treasury
cannot agree to pay a gold dollar for an
amount Of silver worth in the market bat
seventy cents. Ii it should attempt to do
so its store of gold would be quickly ex-
hauSted. The bill should be as extensively
discussed as if there were a probability that
it might become a law. The veto of Presi-
dent Harrison may delay the adoption of
the policy outlined in the bin, but the Demo-
cratic expectation is that the veto will con-
tribute to the defeat of the party RESPONSE
BILE for it. The question presented is not
whether a single gold standard or double
standard should prevail. but whether it is
wise at the present time TO enact a law
which for a time will throw the country
upon silver basis. There is evidence Of
disposition on the part of European coun-
tries to consider the practicability of an in
ternational agreement establishing ratio
between gold and silver which shall be
recognized in all the countries which may
become parties to the agreement Such an
agreement would undoubtedly result in an
advance in the commercial value Of silver
to the ratio established. Ii the American
ratio of 49, SS 10 l be adopted silver would
rise TO 81 % per ounce. If the double
standard can be brought about in this way
it is certainly better than that it should be
reached through a temporary drop to the sill
yer standard. There is 40 ground whatever
for the assumption that the enactment Of
free-coinage law will at once raise silver
from 90 cents an ounce TO 81 %. The law
may declare the silver dollar a legal tender
dollar without regard TO its commercial
value, but il cannot compel the owner OF
1922 grains of pure gold to change them
for 37L25 grains Of pure silver. Each metal
Will continue to have its commercial value
quite independent OF the legal value given
either by law. a good many perpieXing
questions VIII arise from the enactment of
iIet-tOiudHb law. + OI uldllA years our bonus
have been regarded at home and abroad as
gold bonds. The terms of the law of 1878
make all bonds in which gold is not named
in the letter of the bond payable in gold or
silver, at the option of the Government
; When the silver act of 1878 was passed 1t
was expected that it would arrest the de-
cline Of silver and finally enable the United
States 10 obtain such cooperation with
European commercial countries as would
fully restore silver TO its old ratio TO gold.
But this expectation has not been realized.
The Treasury Department continued TO eX-
ercse its discretion Of paying bonds in
gold, aud the custom Of the department has
become the recognized law IL tie matter.
II would be urged, therefore. that payment
in silver after so many years of gold paw
ments was in effect partial reputation.
Tie injury to the credit Of the Government
from such a policy cannot be estimated.
1t may be assumed, therefore, that the
treasury will continue to pay bUnds in gold
even if it has to buy gold at a premium to
do so. Between private parties the ques-
ton would arise if debt could be paid in
kind of money Of less commercial value
than the kind of money loaned. The courts
would have to settle this question, anu the
courts have not as rule been hard on tie
creditor class.