The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1893-09-07
GREENBACKS AND SILVER
baltimore Sun.

baltimore SUM-
It is worth while to consider why
each of our 4I0,ooo,ooo silver dollars
buys as much as a gold dollar, though
it is intrinsically worth but IS cents.
OF the S4I9,ooo,ooo in silver the
intrinsic value is S23o,45o,ooo, and
SI88,55o,o 900 smoothing substantial.
In every silver dollar IS cents are
wanting, their place being supplied by
the governments virtual promise to
give 100 cents in gold for the S. cent
worth of silver which has the dollar
stamp on it. If the government should
be unable to keep this promise-it the
500, 900, 900 OF gold still in the treas
ury at Washington should be exhausted
our S4I0,ooo,ooo in silver dollars
dollars would pass, it is believed, for
but s23o,45o,ooo. The silver dollar
would cease to buy as much as it does
now-as much as geld dollar. The
poor man, who went to bed with $40
in silver dollars in his stocking would
wake up some fine morning and find
it shrunken to $3.50 or less. y Ike
shrinkage would affect such Of the
$780, 100000 of silver bullion treds-
ury notes as are outstanding, and the
S346, 100000 Of greenbacks, 10 say
nothing of national bank notes,
deposits in banks, insurance policies
and other moneys people have COM ng
to them. The Sun recently showed
that some 5000, 900, 900 II our
national currency is kept at par with
gold by the presence of gold reser:e
in the treasury OF but SIoo, 900.
AS long as any of that redemption
fund is left, one dollar will probably
be as good as another. Let it be
exhausted and nothing will stand
between the holder of currency and
loss, except the "credit of the govern
ment,' which is variable. The day OF
equal dollars will be past.
The recent panic came when the
public saw that holders of Sherman
treasury notes had used them to draw
100000 Of gold out of the treas
ury for export, and that there was
danger that the whole SIoo,ooo,ooo
of gold would be thus drawn out and
exported. People, dreading the arrival
of 55-cent value for all dollars bu,
gold dollars, began to prepare for the
worst. Many crowded to the banks
to get their money out, fearing a
general crash. Lenders became fright
ened. They boarded their cash and
thus created new disasters.
Mr.. Cleveland assembled Congress:
in extra session to repeal the Sherman
act, in order to stop adding more
light currency to the 5000, 200, 900 O
currency which the treasury now witt
difficulty keeps at par with gold. The
burden upon the small redemption
fund in the treasury is already heavy
enough, without adding S4o,ooo,o
to it this year, and SO on indefinitely
To stop adding to our silver currency
was the obvious means of keeping the
silver we have at par with gold. Il
would do more. 1t would allay the
fear that we are approaching the silver
basis. We can carry and keep at pal
a definite amount of silver money
S4I9,ooo,o 900 silver dollars, the $3.50,
100000 of Sherman silver notes ano
$1,000, 900 of subsidiary silver
Total, S646, 100000. France by
refusing TO coin more silver keep:
S7oo,ooo,ooo of silver at par with
gold. We can do as we'll, if no more
silver is bought, if no more silver
dollars are coined, if the volume O
greenbacks is not materially increased
The " credit of the government" il
good for certain amount. In 1875
it was not good enough to keep $3.50,
100000 of greenbacks at par with
gold. That year the greenbacl
dollar was worth but $50 cents. Ii
1879 the SS46,ooo,ooo of greenback
then outstanding were brought to pal
only by putting S1oo, ooo, 900 of golc
in the treasury, pledged to their re
demption. II SO much gold wa
needed in 1879 to keep $40, 900, ooe
of greenbacks at par, how much il
needed in 1898 to keep 5000, ooo, ooe
of paper and deprecated silver cur
rency at par3 Our $500, 900. 900, i
seems, will do it if We stop our silve,
folly. Otherwise the "credit of tht
government" is endangered. There
IS no magic in our "credit." Tn.
silver or paper dollar will not continue
to buy as much as gold dollar unles
plain people can see a gold dolla
somewhere to redeem it with. Re
demption is the tombstone of sound
money.