The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-10
THE SILVER TANGLE.

An anti-free-cOinage Democrat has made
the point that il the free-coinage bill be-
comes a law pension of IS month will
in effect be reduced to S. 60. To avoid
this reduction in the value of pensions it is
proposed to amend the bill by providing
that the old soldiers shall have the right to
choose IN what kind of money the pen sions
shall b. paid. Another amendment is in
consideration taking ike care OF working
men; and a third providing that jepositors
in savings banks shall be paid in gold if
they want gold, which they undoubtedly
will. a proposition to pass a law incum-
bered with provisions thatdefea its avowed
purpose can hardly be considered in the
line Of high craftsmanship The Immediate
effect Of the enactment Of a free-eoinage
bill will be to send gold to premium. Such
a result cannot possibly be avoided. No
law Of Congress can compel the owner of a
2j.S-grain gold dollar to exchange it for a
412j2-grain silver dollar. The latter may be
made legal tender for all debts but the
former cannot be required in payment of
debts except in cases where such payment
is specified in the bond. In the event that
the free silver coinage bill becomes a law
pensioners VIII be paid exactly as many
dollars as they are now paid. But the Gov
eminent will not, unless compelled to do so
b. the law. buy gold at premium to pay
pensions With. 1t will pay them in silver,
which, with gold at a premium, will be the
dollar of general trade. The peusioner
will, therefore. get just as many dollars as
he gets now. 1t is not so clear, however,
that the dollar he will receive under free
coinage will be worth as much as the dollar
he receives now is worth. The business
or silver basis. In exact proportion TO
the value OF the silver dollar as compared
with gold viii be the rise in the value of
commodities under a free-coinage law
This rise viii net take place in day, but it
will take place as surely as two bodies of
water will maintain common level while
communication is free between them
Prices will go up about 30 per cent. and re-
main there until the TWO metals begin to
approach each other. Where, then, will
the pensioner be? He will &c. his eight
dollaTs month. bat the necessaries of life
viii be about 30 per cent higher than at
present. To avoid this substantial redue-
ton IN the value OF pensions il is proposed
to pay them in gold. But why pay the pen-
sioner in gold While the wageworker has to
take the chances OF an increase in wages
corresponding to the rise in the price OF
commodities? Why create one currency
for one class and another for another +?
Why give the creditor a chance to get his
gold dollar on the strength of claim that
the debt vas contracted on a GOLD basis
The fact Is that the free-silver men in the
House do not know what they are about.
The debate shows that they do not. No
free-silver advocate pretends to know what
would be the immediate result of free coin
age They seem to expect that the wide
gap between the commercial value OF gold
and the commercial value of silver on the
is to ] ratio would he bridged in day.
But it will be years before the two metals
come together on the old ratio and in the
meantime the differences ia commercial
value will be expressed by premium on
gold.