The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-16
SILVER AS A COMMODITY.

A correspondent figures out the present
ratio between silver and gold at 22h to !,
reckoning silver as o commodity, and asks:
First-Is not silver as truly a commodity as
nickel, copper, paper or anything that can be
made into money?
Seeond-If II Is within the Bounds OF equity or
reason TO advocate the free coinage of a 4121a
grains OF silver In place OF $40 grains. the true
value Of the dollar of 25.S grains gold, why not
ask for free coinage of nickel on fiat of say
lao grains to the dollar?
1hrd-If this method Of relief 10 those who
want cheap money is proper, would It not be
better TO declare all forms OF debt of; e.. full.
not part reputation?
FourTh--If the Government should adopt
double standard based on the true ratio to-day
about 221a to u whom would IL injure? Would
such act force the bulli0n-owner TO have it
coined or prevent an advance In value?
Fifth-As many believe that free coinage
4I2I5 grain silver dollar viii bring this United
States 10 4 single (sveD standard Qf we do not
object TO being partial repudiatorS, and DO object
TO more than 4121a grains silver In our dollan
why not reduce our gold dollar to 1878 grains.
thus treating both metals equilably and securing
a double standard? HOMO
Silver is not commodity in the sense in
which nickel. copper and paper are, for the
reason that law makes silver money. The
Bland act, which provides for the coinage
of not less than 100000 nor more than
$4,000, 600 month, declared the silver dollar
so coined legal tender for all debts, public
or private.
The second question must be considered
in the light of the fact that by law silver Is
money. AS nickel has never been declared
money in the same sense that silver mas,
there can be no comparison between the
twometals. The equities Of the case are pro-
vided for by the fact that from the meeting
Of the First Congress up to 1872 41279 grains
of silver were commercially equal TO %
grains Of gold.
The third question is not pertinent. Pay
ing debts in a kind OF money which was
legal tender when the debt was contracted
cannot be considered as either partial or
full reputation. The claim of creditors TO
payment in gold on the ground of custom is,
however, entitled to consideration.
To the fourth question the answer is that
if the Government accepts the 2212 TO l
ratio as the legal ratio the parties injured
will be debtors who incurred these obliga-
lions when 412B grains of silver was a
dollar. Our correspondent will readily see
that it is not quite just to pay debt with
go grains of silver, which be contracted to
pay with 4l2H grains of silver or its equiv
alent IN gold.
The fifth question involves financial
problem. The best means of restoring the
parity between silver and gold is matter
upon which fnanciers who are friendly to
the double standard differ 1t will readily
be perceived. however, that law reducing
the gold dollar would be partial repudia-
ton. In this case we have to consider what
constituted dollar when debt was con-
tracted We find that 25.S grains OF gold
900 fine and 4l2b grains of silver 900 fine
have been full legal tender since the Gov
eminent was established. 1t would follow
that law reducing the gold in dollar
might be considered partial population,
while one making the old 412R-graln silver
dollar a full legal tender would not. The
difference is that when any debt was con-
tTacted the law made either the 25.S-grain
gold dollar or a 4l2 4 grain silver dollar full
satisfaction for dollar of indebtedness.