The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-05-21

the currency. including subsidiary coin. and we
can get no more into circulation though the
government pays express charges on orders for
the coined dollars and the law says theg are
legal tender and that national banks may hold
them as reserves. The remainder of our silver
Hes IN the treasury IN dollars and DulIl0n,
neither currency nor money OF redemption, and
the secretary of the treasury is reported to
have said few days ago that it is like SO much
lead or iron.
France has her currency in silver, SIS per
capita; Belgium, 50; the Netherlands over Sl4,
and Spain nearly 50; and all this is either cur
rent or can be used as money. In fact Italy,
only gold standard nations Of Europe using as
little silver as we use. Russia single silver
standard nation, uses 80 cents per capita OF sill
yer, and 81. 81 is the highest sum per capita any
single silver standard nation uses. These
statements show the standard has little to do
with the use of silver and 1 do not suppose
the strict sense. The most convincing argu-
ment for single standard is that such a thing
as the silver question exists.
One contention OF advocates for silver has
been for free and unlimited coinage, and not
long since this was their uitimatum in and out
OF Congress. and this is still the demand OF
conventions, though many Of those interested
in silver who have considered il have quietly
dropped the demand. If any one who may own
or buy silver can go to the mint, pay the
charges for coming and get coins at the
rate OF ounce, coins Dy law are IL
legal tender for that amount. In speaking OF
double standard in this country with a single
standard in Europe. l deferred some reasons
against it, and they can be given he e, for they
also apply TO free coinage. What is called the
Gresham law, that cheap money drives out dear
money. If there Is any place TO which the latter
can be taken. is conceded by all. It is case OF
speculative selection and the survival of the
cheapest. Our gold is good anywhere, and
there are places where it can 60 but Our silver
dollar is only worth 81 cents in the markets
where the gold would go for full value and the
silver must stay at home. II silver could be
bought for So cents per ounce in Europe and
brought here, and by paying for coinage made
worth 81. %. the silver would flow here. The
silver dollars would be abundant every one
would pay in them gold would be boarded and
go to a premium, and have explained that our
large debts. probably two-thirds OF the
whole Indebtedness Though this is only
an estimate) are payable in gold. y man in
England could buy 10000 ounces of silver cost
ing, at eighty three cents, $780, or buy it
here, get it coined into Si2 $780, pay 20 per cent.
premium for gold and take home 81 per ounce
in gold for his silver. This could be done at a
profit until he had to pay over 30 per cent
premium for gold, and we should have silver
basis and owe gold. 1 cannot think our gov
eminent viii ever try such an experiment. [
yer and had to give up the idea.
One of the things brought into the silver
question is the proposed repeal of the act OF
1890. called the Sherman act, though Senator
Sherman is said TO have told its advocates be-
fore its passage that il would not effect the ex-
pected result. From 1873 to 1878, we had no
law for the coinage OF standard silver dollar.
and in the latter year the Bland act was
passed. providing tor the purchase and coinage
into dollars of from 81 100000 to "a 0jJ 000 worth
OF silver monthly II also provided for silver GER
tficates for silver coin deposited. Under this
law l think there were coined over $4,000. 0O0
per year unJil 1890, and silver still went down,
and in 1890 the Sherman act provided for pur-
chasing 45U0,C0O ounces monthly for giving
r-nr thar ahnc 4
per month until July, 1891, ana afterwards
enough to redeem the notes given Tor the pur-
chase price The certificates and notes under
the two laws were mace legal tender for all
taxes and customs. and the dollars we're also
made legal tender. Under the present law
the notes have been given at the rate of $40,
O01U00 to $50 600 per year, according to the
price OF the silver. In the fifteen
years there have been put into cir
culatiOn about 81. 100000 of the dollars and
lars or in bullion 10 the amount of perhaps A4,
00, 90. OF the $40 00O, 900 ounces OF silver pro
duced in the world annually, the United States
produces IS, 900. 900 ounces. In 1892 We used in
the arts about COO ounces, and the gov
ernment bought 54.00000l making 64-l40 OF the
production of the world, and thus we bought
about 5000, 600 ounces OF foreign silver in excess
of our production. Thus far the notes have
been redeemed in gold, so far as redeemed, and
on redemption they Gun again be put into cir
culation, and the Act authorizes their redemp-
ton in gold or silver coin at the option OF the
secretary The option to redeem in silver is
useless SO far as can see, and if they could be
SO redeemed it would be discredit to the gov
eminent. An explanation of this Will show the
mistake of the law ana of all laws TO give value
10 a commodity, and VIII also show why our
currency is thus far good and why there has
been no contrast between gold and silver in the
currency; and that, if that contrast is ever
forced, we shall be on a silver basis. While
this last law has been in force the purchases
for the government will average perhaps % or 96
cents per ounce and more under the Bland act
The government therefore gives the seller of
the silver note for % cents per ounce, coins
The silver into Sl.29 silver goes down TO SO
cents per ounce, and when the note is pre-
sented the holder would get about 63 cents
worth of the same silver in place of the % cents
could redeem in silver it would not Go it under
such circumstances. Again. suppose the gov
eminent pays % cents in gold. it has in store in
place OF IL an ounce OF silver coined or I'M
coined worth So cents, and loses IL cents per
ounce unless silver advances in price,
and the loss OF depreciation falls on
some one. But if the government
wanted to redeem in silver it cannot unless
the holder is willing to take it. because the note
is legal tender and receivable for customs.
and this fact and the good faith OF the govern
mont will keep IL good whatever may be the
price of silver. The government might as well
pay for the silver in gold as to give a note and
then redeem il in gold, and this is one of the
reasons for the want OF gold in the treasury
between gold and silver in the currency. Gut
the train is all laid, and if free coinage is at
tempted, or If the government should INSIST on
paying out those dollars to its creditors, or any
move be made which would contrast gold and
silver, all the laws that can be enacted will not
prevent gold from going to premium, unless
the silver dollar is made equal 20 the gold dol
lar There is no danger of such a move and no
danger to the people from the silver question
except that the government may be embar-
raised for gold and lose on its stock of
silver. The reasoning in favor of the
law was like the nsans for all cornerss
The production OF slzger in the world was
known, and it was Il. fE2SaSh if we could buy
54.0l0,000 ounces per Es loesldes what we
used in the arts, whifNsl1 1882 reached about
corner. The principle of such a law is enough
to condemn it, and If the silver, except VIII at
we wanted, had gone into the markets of the
world, other nations would have had an inter
est in holding up the price. Storing it Goes
not take II out of existence and the knowledge
that IL is there ana the fear of what our gov
eminent may do on the silver question has
probably affected the price of bullion more
than to have thrown the silver into the market.
We can all see this state of affairs can
not last and advocates of silver admit
the law is a bad one, that it does
the miner no good toget SO cents for his silver
and have it coined at 81. 90 into useless dollars
but they cling TO the law as q club to force
some legislation favorable 10 silver. 1t was
the fear of the effect of these laws and the
knowledge OF the increasing production of sill
yer that induced lenders TO begin, SO long ago.
to require contracts for payment in gold. We