The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-04
SILVER AND PAPER.

Secretary Foster states that his visit to
Europe is one Of pleasure only, and not OF
business: but his Decentralization at South
ampton and his hurried trip to London have
led to suspicion that he has had an i'm
portant talk with Mr.. Goschen On the sub
lect of an International conference on the
silver question. The course of the silver
market does not indicate that any under
standing was reached, and yet the vague
talk Of fnanciers seems to be crystalliZing
into definite project for solution of the
present problem. The steady decline in the
market value Of silver. and the uncertainty
which every one feels how low the metal
will fall. arc admonishing the financial
world that things should not be allowed to
drift as they are doing. for fear Of dangers
OF which the Bland bill is one of the most
obvious.
1t is doubtful if at any period of history
so much silver was ever before locked up in
banks. and therefore practically withdrawn
from circulation as there is now. Leaving
nut of the account the accumulation ia the
United States Treasury and the Bank of
England, there are in the vaults of the Bank
Of France 59.G00 900 in silver, in the Bank
of Germany $50, coo. 600, and in the Bank of
Austria SS3 00o. 900. There is probably not
less than S75O. 000. 900 in silver coins stowe d
away in bank vaults. to certain extent use
less for purposes of commerce, and declin ing
every day. not indeed in purchasing DO wer,
but In market value as compared with gold
The problem of the day-a problem which
has puzzled our financial authorities for
years-is how to impart mobility to this vast
mass of currency.
1t has been lately suggested that the CON-
merciai nations should follow the example
OF the United States, and issue paper money
based on these silver deposits. Representa-
tives of each nation could meet together.
agree upon an arbitrary price for silver. aud
s1-'ange TO issue paper based On silver de-
posted in the several treasures. 1t would
not DE necessary to make the paper legal
tender. and so the danger of a premium on
gold would be ayerted. But being based on
the credit of the nation issuing it, il would
probably be always worth its face all over
the world, and would thus serve the purpose
Of currency.
HE CALL is not prepared to give an
opinion one way or the other on this
scheme. On the face OF ii Ii would amount
TO monetary expansion, which would at
FIRST initiate prices and would raise the
valae of commodities, stimulate commerce
third party appears 20 want. On the other
hand, the initiation would be certain to be
followed by reaction. and between the
two would intervene periods Of wild fiuctu-
atoms. which would unsettle legitimate in.
dustry. Whether the ultimate dangers of
the project would not oyerbalance its imme-
diate advantage is a matter to be maiurely
considered before any, steps are taken TO
put it into effect.
The first effect of a mobilization of silver
winch Is what the scheme amounts to-
would be to imDart steadiness to the pres
ent ratio between the metals. One authority
states that the effect OF such an international
arrangement would be TO put up the price
OF silver very rapidly. That is not SO
certain. Ii the nations agreed to issue
paper on deposits Of silver at Al pence an
ounce, and silver rose to Is pence, the
paper would go in for redemption and the
cause Oh the advance being removed. the
effect would cease. 1t does not appear
likely that anything would follow the issues
Of paper except maintenance OF silver on
an equality with its proper representative.
That would certainly be gain for COM
meree. though it might not satisfy the silver
miners.
Sooner or later something must be done
to increase the supply of currency In use
among the commercial nations. For many
years the annual supply Of gold has barely
sufficed to furnish the mints with the
amount of bullion necessary for coinage,
aud the product Of the silver mines finds its
way into bank vaults and is lost to COM
MERGE 1t has long been evident that the
growing deficit must be filed with issues OF
paper In some shape or oiher. 1t is well
that experts should devote attention TO each
new scheme that is devised and should
scruiinize their conditions with the closest
Ca e.