New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-24
THE CURRENCY QUESTION.
AN EXPLANATION OF THE PRESENT FLOW
OF GOLD TO EUROPE.

AND THE WANT OF OCCUPATION For
SKILLED LABOR THERE AN AR
GUMENr AGAINST THE SIN.
GLE STANDARD.
TO the Editor Of The Tribune.
Sir: Permit me to submit through your Columns tue
following views the silver problem:
II IS impossible to discuss thi, subject witlout
considering the entire currency question: lor 'i'
circulating medium OF a nation. however distinct In
character should be capable OF being converted mo
that OF other nations without loss IL Is not SUM
.scp, that II Is legal tender at home II Should be
capable OF being used 10 settle the balances '"a'
NAV be- due other nations without cost Hehc" 'le
standard OF value to be used as basis OF m'oium
~ circulation IS entirely matter of agreement
ho,weep nations For instance. the United states IN
1873 demonetized silver, leaving gold as 'he Soie
holds Of currency circulation, which for long
neriod ~ time has been the standard OF England
me force OF this example set by the TWO greatest
commercial nations OF the world compelled the o'h'r
countries OF Christ endom adopt the same standard
ae tho basis of value without tho foilnnhty Z"
. conference This single standard as basis OF
money Is now therefore TIE only basis for the CIR
cuating medium OF the commercial world.
At tho time Congress enacted the Law by which
silver was dcmonetiHcd II was not anticipated 'h'"
our Government would be called upon to do the
banking OF The country by issuing It's own oemaho
notes 10 he used medium oil drchia'oh
The nations that have tried this primitive me'hoo
OF creating a circulating medium nave an ''''
various disastrous experiences been comPon'o ~
ohorno, r. The wealthicst and most advanced
governments OF Europe leave the Issue oil every
species Of paper unreCognzed by the stare anu OILY
touched by 1t when equivalent to eold anu SN''.
These nations have conferred the executive power OF
expanding and contracting their currency UPON
bank or banks. whose notes are maze reut'"ap'
In the standard specie OF The country. me n''.
hank O, the United states. which was incorporated
a IL.
WIS bank OF this character. The Secohu DAMN VI
,ho limited States was incorporated April 10. Iolo'
with an authorized capital OF twenty-five ni'''''S'
The action Of President Jackson in lo'. V"'olhE '"'
NIL extending its charter put an END 10 inns io''
=, banking I'm the United states after 1870 "h'n
A. o,.r,or exnired There was thought OF
issuing paper legal tenders AT that time 10 tame ~
rlace OF this banks paper As IL was not supposed
congress had the power TO issue such Pll''r III "
legal tender for private debts. After io"'' ~
the breaking out Of the civil war; our '"'
renoy was expanded and contracted 10y local Sa'e
hanks whose bills were redeemable IN the sUNuaiu
- o,A s,lver coin NJ the Federal Government
AZ a war measure q tax was then placed On N'ale
bank issues This class OF DIS theh o'S"Pp
and Treasury notes Of the United STATES ''o" '"''
place until about the close OF the war; "hcn ->'''
hank currency together with these Treasury notes
became the circulating medium OF the country
cnscie noymeni being suspended the National BANK
notes were made redeemable In the "o'eFim'n'
notes. which a legal tender TOT oeD'N i'''i'
and private except dues on imports anu '"'o''0'
on the public debt. These legal tehaer i'"''"H
notes were not considered money. but were issued
under that provision OF the Consnu'loh ""i'n
authorizes Congress 70 borrow money on the cr"o'
of the United statcs' and they were listed as part
OF the public debt -,
In 1870 however the supreme Court maze
fundamental new Interpretation of that provision y,
,hs Constitution which declares that Congress shall
q rntp
thsreo, and Of foreign CON- IN which 1t d"cre'd
that the Federal Government had the power 10
create and issue money. This decision put inc
Government demand notes which could not he Pa'o
nj that time In new light before me people, anu
hroucht into existence powerful political party mat
,vorad the decentralization OF both gold and silver
ond tho Issue by the General Government OF an
irredeemabl. paper money TO be USED vi the Se'u'
mont OF all debts both public and private III inc
.trueele that followed between this party and the
specie resumptonlsts silver was demohe'Heo'
Shortly after this January IA. 1879, the Resumption
90, was passed to take effect in 1879 thus preventing
the d.monetzing OF gold and fixing It's status as the
sole standard OF all values.
This led to new political combinations and the
massage by Congress in 1878 Of three compromise
measures. One amendment TO the ReSimp
ton act which the further retirement OF the
legal tender notes Issued during the war ana re-
oured that the amount then outstanding should he
kept always in circulation. The other TWO com-
nrom,se measures were embodied in single act
which sought to make a further Issue OF Treasury
notes and at the time rcmonetze silver II
limited the amount Of Issue 10 the silver coined undc
This act which was fixed 1000 900 ounces month
the notes be issued upon the silver so coined w
deposited In Treasury. The act did not remonehe
silver as these certificates were not eXchanGeapc or
gold certificates and The provision "maainS them
eell nder except when Otherwise expressly stipulated
In contract" most unfortunate as 1t seemed HE
n notice 10 the foreign holder OF currency sccl
rifles that II would be lawful TO pay them In n
coin which the Government did not recognize a'
standard OF value or legal tender and which 1t
refused TO make eXchangcable with gold or keep on
parity with gold.
The successful resumption OF specie payment on
January l. 1870 senced the advocates Of fiat money
but II advanced the price OF Government DohoS 10
such an extent to make tie issue OF National
bank notes which secured 10y them unproh'aoi'
and this class Of notes began disappear. Ionsc-
quently as the prohbItory tax on siaiebank Issues
continues there is constantly Increasing Necessary
for tlIo Central Government to substitute It's Treas
ury notes as a circulating medium In tho absence OF
INV other means OF obtaining IT. Conplrs ms coz
diion OF things with the fact that only per cct OF
the business OF the country Is done Will. currency
the remaining 90 per ce,t being done On credit Win
checks and such Ike obligations, II Is evident That
shrinkace Of confidence is liable TO occur at any
time and thus create demand for practically I'M
limited Issue OF these Government notes. TO guard
against this contingency. and at the same n'ne 10
limit the amount TO he issued and meet the demand
for more paper money, Congress authorized an IN
crease in the amount OF silver purchases from 2ooo
coo ounces per month 800 COO ounces per month
owing the depreciation OF silver which makes 'he
silver dollar coined under the act OF 1873 worm only
GA cents Congress rescndcd that law and authorized
IN place silver certificates the issnc OF Treasury
notes payable In con' against the silver purchased
NJ It's gold valuation. which at the present price IS
about s3 cents per ounce BY this means the Issue
Of Treasury notes Is increased about $o5.OOO,ooo
per annum: vet the circulating medium of the coun-
try does not seem he excessive money has been
loaned the past winter high as % per cent per
annum and generally commands good rates Pend
ing n change in our barking laws which Will remove
the necessity that now compels the Government 10
issue its demand notes TO be used medium OF