New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-21
TILE SILTER QUESTION.

TIE SILrER QUESTION:
Certain readers pray for what they call ele-
mentav information on the silver question.
This country now Uses three kinds OF money
cold coin, silver coin. and paper notes or GER
tlcates. whch are promises to pay com. These
three kinds of money have been kept exchange
able ever since specie resumption, January !,
1889. 50 that any sum in paper or in silver
will buy inst a much goods Of any kind rs
Tho same sum in gold. But that is only be-
cause the paper and the silver represent the
gold which could be got for them. The ques-
ton il whether the silver and the paper shall
thus be kept equal 70 gold in current value and
buying power
When the people were poor they used silver
rather than gold rs other poor nations do now
In China Og India. if IA mans wages are 10
cents a day. he can carry months pay in any
pocket without inconvenience. In this coun-
try. where wages are 50 to 50 per day, load
f $50 70 So in silver would be unhandy, and
the employer who has thousand men to pay
would have to send drays capable OF hauling
two tons after their months wages. SO the
Use of silver except in small payments has been
abandoned Moreover, foreign commerce has
become enormous, and affects prices OF nearly
all articles. and in settlements for nearly
- 600. 600. 600 worth Of goods exported and
mportcd we have 10 risc the money accepted
in the worlds principal market for exchange
| for If we did not other countries would have
great advantage in all trade, virtually liking
nr;ccs Of things bought and sold by us at their
Measure Having prices Of things fixed by
foreign trade in gold, cannot use money Ct
different value in domestic trade and have
prices for con>umcrS and wages of labor fixed IN
| money of the different value without sublcclng
all consumers and all labor to the fnchtful loss
they had t. bear when paper money was nos ic-
tocm1blc and hdctuatcd in value from day 10
day. Thus it becomes in the last degree ncceN-
s,ry TO prosperity that tn, gold the silver and
the n,pcr money shall be maintained of equal
value. :, that wages paid in either will buy
exactly A. much Il If the same sum were paid
in cold. 4, long aS we ID this, our money is
tho money Of the commercial world, our prices
are mad, in the world, money, n other nation
! has the best OF Us in trade. and money
changer or merchant has not the best OF the
wage Garner.
Free coinage would make it impossible to
keep gold and silver at equal value here Inc
| silver dollar in usn contains only about %
ccn,, worth Of bullion at the present market
value. In the worlds money, the ounce OF
Gnc silver is worth about - cents, but our
cojnlrc rate was established when it was worth
sie9l-i IN gold and We put exactly the same
number Of grains 81 silver into the dollar now
and no more With free coinage, anybody
could buy a thousand ounces Of silver IN Mex
/ ic, or London. co.ting at present $500 III gold
send il - the mint and get ~, 292 30 IN stand
ard dollars for it. which dollars the law makes
a legal tender in payments. People VINO nave
70 p1v for goods purchased abroad could not
pay in such money. They would he forced 70
nut ND prices of such goods. 50 a. 10 get back
tho gold paid for them. At once there would
he two kinds Of money. the gold dollar ana
ths G5-ccnt dollar, and two kinds OF prices.
In short, am holder # gold could get and
would demand a premium for it, representing
the difference between the G5-ccnt silver dol
lar and the / 90 cent gold dollar That premium
would lucuac from day to day as the market
price of silver bullion tuctuatcs
Some reason thai the price of silver might
rise Doubtless il would, if we had gold enough
10 bay ali the silver the world has 10 sell.
Government did take all tho silver produced
in this country, beginning in 1890, and silver
rose for n time bu. soon dropped lower than
ever. II we should undertake to coin over
again the silver dollars and put more silver
into th1'.l the consequences CT Tree coinage at
a new ratio would be the same in kind and
ucrhaps equally disastrous. There would still
be some premium on gold, and n small premium
would be enough to drive it out Of use and to
pnt prices on a silver basis. The Government
has coined over 500, 0O0, 900 in standard sill
yer, and after fifteen years OF constant effort
has been able to get no more than 500, OOO,-
900 actually used by the people. Beyond about
that limit people do Mt find it convenient
to u,e such coin. But Government has
issued over S322, 600, 900 Of silver certificates,
rcdcomahle in silver djarS, and Sl35, 900, 600
new Treasury notes paid for silver bullion,
| which may be rcdcemable in silver dollars,
and moreover all the lcgal-tcndcr notes would
be practically rcdoemablc in silver only if gold
should command premium. For holders of
notes would present them, get tho gold and
rollizc the premium, until the Treasury would
he forced to stop gold payments. Tho reserve
If gold in the Treasury in excess OF certificates
outstanding is now only 800, OOO, 900, and il
could be drawn out in few days il there were
premium on gold. In that case the paper
currency would he practically rIccmable in
silver only, would have only the value or plir-
chasing power of the silver dollar and would
the price Of silver bullion in the worlds
| money.