Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-29
A MONETARY SCHEME.
The Proposition of German Finan-
cier That Finds No Favor
In MATTHEW MARsHALL'S EYES
The Death of Bi-Metallism Conceded at the
Very Beginning.
FAULTS OF THE PROPOSED SYSTEM

NEW 1Ohh, aug. Dr OOelDer
Monetary Scheme" is the title of MATTHEW
Marshall's article for to-morrow's Sun
Is as follows:
Three weeks ago commented briefly up
on a synopsis transmitted by cable OF
scheme proposed by the learned DR.. Adolpf
Scelber. OF Vienna, for increasing the use o
silver as money by substituting coins of that
metal in the place Of the gold coins now in
circulation below the value of 81 each.
pointed out that no gold coins smaller than
che French ten-franc piece, worth about s.
were in use anywhere in Europe, and e1
pressed my inability to comprehend what
DIR. Soelber was aiming at. Since then ]
have learned from foreign newspapers and
from a copy OF DR.. Soelber's own "memoran.
dun" tnat the cable synopsis of his plan
was incorrect in putting the minimum he
proposes for gold coins at IS grammes,
whereas il is SIS grammes, or nearly double
the amount
The first effect of the measure, if adopted,
would, therefore. be TO retire all the l0-franc,
lO-mark, half-sovereign and s. so gold pieces
nov outstanding, leaving only the pieces of
twice their value and upward. DIR. SoelDer
would also have all the existing silver coins
above the value of 20 or 25 cents called in
and melted up and their place supplied by
new ones coined upon the ratio of 20 to ].
With commendable candor he acknowl-
edges that the idea underlying his scheme
is not original with him, but WAS suggested
in 1881 by Bank Director Moritz Levy, the
Danish delegate TO the Paris Monetary Con-
ference oil that year, in paper prepared by
him for the conference, and that it was
assin put forth the following year bv Herr
Drehend, President of the Imperial Bank of
Germany, in an article published anon
ynlously in a German newspaper
The Proposed New silver Coins.
The new silver coins with which DR.. Soel-
Der proposes to fill the vacuum created by
tie sithdrawal of the present small gold
and the old silver coins, he would have
coined, as have said, at the new ratio of 20
to !. instead of the present ratios of l515 TO
In Europe and l6 to / in this country. He
would have them made a legal tender among
individuals and private corporations up to
three times the value of the smallest gold
coin permitted under the new system, but
receivable to an unlimited amount by the
Government. In order to avoid the neceS-
si;y of carrying them around in bulky and
heavy quantities. he suggests the issue of
certificates. representing them in denomina-
tions OF not less than the half OF the value
OF the smallest permitted gold coin, and
possessing the same legal tender quality as
the actual silver coin. The current small
change he would not disturb.
DR.. Soelber frankly comedies at the out
set that bi-metallism is dead, and a part of
his scheme lis the establishment of q COM
mon unit of gold as the standard of money
value. lie even says that no European gov
erEment would join in a conference called
for no other purpose than to consider BIZ
1netaliism. Fortunately President Harrison,
In converting the monetary conference
shortly to be held, has suggested the new
topic simply of increasing the use of silver
n money, and this topic DIR. Soelber expects
TO be respectfully considered. The leaders
Of both political parties in Great Britain
have pronounced against Di-metallism.
Germany is equally opposed to it. Austria
has just adopted the single gold standard,
81 In mi m hD hor n nd
silver in practice. though not in theory, and
TIE recent defeat of Tree silver coinage in
our Congress shows that this country, too
VIII adhere TO gold.
Some of Soelber's Computations.
All that is possible is 10 prevent silver
from being still more deprecated than it
now Is, and it is 20 aid in accomplishing this
result that DIR. Soelber has prepared his |
'a-emorandum" Should his scheme be |
adopted by the leading nations of Europe |
and by the United States DIR. Soelber com. |
DuUes that it would result in adding to the |
bank reserves of the commercial world 600.- |
0Ua llilDgrammes of gold, worth aDont $780,
O0b Co., and in the employment in its place, |
as currency, of a corresponding quantity OF |
silver which, at the proposed new ratio of |
RO to l. would be about 49O, 100000 ounces. By |
thus increasing the gold reserves of the \
banks and simultaneously decreasing the |
surplus stock OF silver pouring OH the mar
ket the relative value of silver to gold he
the evils resulting from its further depre-
citation would be prevented. That he has
no hope of restoring IL to its ancient posi-
zion is plain from his suggestion that the
new ratio be established at 20 of silver to l /
q: gold, and even this he is willing to have
reduced.
An obvious objection to the plan, and one
to which / find no answer in DIR. Soelber's |
memorandum is that the effect it would
produce would be only temporary. When
once the existing stock of small gold coins
had been gathered i'll and stored away in
bank vaults, nothing more would remain to
be drawn upon, and when once tie channels
of circulation had been filled by the pro-
posed new silver coinage and silver certif1-
Gates, this means for the employment of
the surplus silver mined would be ex-
hausted, and the downward course of the
value of the metal would recommence.
Too Much Trouble for a Little.
This being So l fail to see the inducement
TO take the immense trouble required: first
TO win over the Governments whose CO.
operation is essential to the success of the
scheme; and then, TO execute it in detail. As
Samuel Wellers boy said of learning the al
phabet: "lt is hardly worth while to go |
so much TO get so little" Even if
the decline in silver could be arrested per-
by DR.. Soelber's plan, or by any
other, and the value of the metal, as COM
near 20 to /, or % TO /, or whatever might be |
decided on, the result would fail co content
those whose interests demand the restora-
ton Of the old order OF things.
The outcry in behalf of silver money |
comes chiefly from the Western and SOUTH
western citizens of this country, who want |
Il cheap dollar with which to pay their |
debts, and from the British residents in In
dla and owners of property therd whose in
comes have been diminished by the decline
in the rupee If the gold standard is still to \
he maintained in Europe and in the United
States and the ratio OF siverr educed to 20 to
I nz ATEAll m mr. fialn .la
5 i'll be dissatisfied.
1t will be said. probably, by DR.. Soelber.
and the other advocates of the use of silver
money, that gold alone does not furnish
enough currency, and that it must therefore
be supplemented by silver in order to avoid
The evils o. money stringeucy. The prices
ot commodities being regulated by the vol
lIne OF currency in circulation, they are low /
Wnen that volume is scanty and high when |
1 is full.
When Paper Money Is All Right
Waving the discussion of the question |
y Shether low prices are a curse and high
prices blessing it is enough to say that
lie volume of u currency can be increased
IS well by the addition of paper money, the
-alue OF which is derived from its prompt |
redemption in gold on demand, as by silver
DIN which is maintained at par with gold
My by being redeemable, like paper, in
old Mt the will of the holder For exanple
re have in this country, at this moment.
Dout SSOOOOOOOO OF paper money IN use, in
he shape OF greenbacks, silver certificates.
nd coin notes issued Ior the purchase OF
liver bullion under the act of July, 1890
This mass of currency is redeemable either Q
n silver or in gold at the pleasure of our I
government. So lar the Government has /
edeemed it in gold on presentat ton, and, | G
here fore, it is accepted as equal to gold III 4
he Governments were to refuse thus to re- 8
eem it, it would sink at once to the level OF | t
: bullion value as silver, whatever that ! {
alne might be. II, too, while the redemp- 9
on in gold continued, the whole mrss OF q
liver in the Government vaults wDre to
anish into smoke and blow away, leaving | =
nlv the gold there, the value of the na ner