The herald., 1893-10-29
HAZARD ON THE SILVER MAT TER
A Limited VS.. an Unlimited
Coinage Of that Metal.
Argument Between II. d. BarrOws
and the Ex mayor.
why tho Currency Has Been Contracted
and All Business Paralyzsd as -
Result Thereof-Hazards
Reply to Bnrrows.

II y Barrows in the HERALD to my
lc,ler ia remarkable in many ways, in
anet il contains many statements entire
il AT variance with the monetary con-
olions.
Mr.. g. says: "It is preposterous to
o'sert that whenever the government
lAs coined 8 silver (or goid) dollar the
faith of the nation is pledged to main
tain 1t at q dollar, compared with any
other dollar" " | do not know why 1t
is ptepceterous to make that assertion,
il it is true, and if there is one thing
s-.t,et known than another in the rudl-
nlcnts OF our financial system it is the
fact that it has been the policy of our
gosornment to do that very thing ever
rirce the resumption of specie pay
ments. The purchasing clause OF the
sherman act, more widely known.
probably, than any act ever passed by
congress, eee1s to have escaped the
attention of Mr.. Barrows and it de-
ciayes in go many words that it is "the
established policy of the United States
TO maintain the two metals on parity
with each other" This policy found
ts way into our financial system to
bring greenbacks on par with gold
and silver and enabled our government
to take care of nearly $3.50, ,000. 900 green
backs by pledglng the faith OF the ma
tlon to pay these greenbacks in coin,
and as ths government showed its in
tention to do 30 by placing at the dis
posal OF the secretary OF the treasury
sl0O, 900, 900 in gold for that purpose.
Had it not been for this pledge OF the
government we could have resumed
spsc:e payment only by borrowing and
paving interest on $250,000,000 more
gold 1t is this pledge alone that keeps
the only paper money We have in circu-
lation. 1t ia about the only policy
which our government bas established
and maintained, and that is to keep all
American money on parity-one dollar
as good as any other dollar.
We continue to quote from this re-
markabe letter: 1.-The only interest or
duty Of the government has in connec-
non with maintaining the value of coins
al either metal consists in alwaye using
tne cheaper metal in its own payment.
1t is the only known way in which
marily the general masses OF the two
als can be kept on any common
3. II, aud, eecondarlly, and as q natural
Ic-lit thereof, the coins OF each can be
,rpt rs q genuine and not bastard
panty. Ii it, the government, had
adhered to this rule OF paying in the
lo@ @sr specie, there would have been no
etr GUS divergence between the two
- money METALS"
Tr Bar.ows, if.you can explain to
} ankind how the government or any
sse can pay in the cheaper money
c tl.D -,
CIRCULATION, you will find out something
exist. All history and experience
tesches that the moment there is dear
sna cheap money the cheap money
runs the desrer out. You say the only
way in which the coins of each can be
Kept on a genuine parity is in paying in
the lower specie. You cannot cite any
country in any age in which such con-
dition OF things existed, that the debtor,
having the right to pay his obligations
for, say go cents on the dollar, will dis
charge them in money which costs him
100 cent?. -
Another serious error into which Mr..
b. has been led is contained in this
statement: with this duty performed
merely certifying 10 tbs honesty aud
the weight and fineness of each stau-
dard coin of either metaD the govern
ment's duty ends. 1t leaves the coins
OF either metal to take care of them
eelvee. It guarantees the
weight and fineness, but it has no more
TO do with guaranteeing the value OF
either than has the party who brings
the bullion to the mint and receives it
back again stamped and certified and
then puts it in circulation"
If that was all the government did
for bullion it would not be money, it
would be just go mucn metal, it would
not have the first, last and only requi-
site of money, and that is the law of
the land back of it making it legal
tender IN the payment OF all debts. To
be money all metal or paper must be
clothed with the debt.paying power.
For long period in our country the
Mexican dollar was given this debt
paying power, and readily passed cur
rent without objection; but when it
was shorn of it's power by government
enactment it was no longer money in
our country. and now these dollars are
worth about 81 or 55 cehte, and the
United States dollar, which contains
less silver. is worth 100 cents. The
Mexican dollar is stamped" "certi-
fed" as of yore, but is shorn of its at
tribute as money, by reason of the want
OF the law which made it money. There
is no trouble to get the government TO
certify to the honesty and the ''fne-
ness" and stamp its weight in silver or
gold, but when it comes to stamping the
American eagle on a coin, and giving it
all that is necessary under the law to
vest it with full debt-paying power, that
is another act, but it is the one which
makes it money.
| wonder what value il would be to q
piece of silver if the government were
to stamp on it something that every body
already knows; that is. that it 10 pure
silver (honestly), amount" and fine
ness" And | might say further, let the
government stamp on it that it con-
tains the came amount and kind OF
silver which is contained in silver dol
lar. and leave this stamped piece OF
silver, as you say, ito take care of itself
or turn it over to the party who brings
the bullion to the mint and receives it
back again duly stamped and certified,
and then put it into circulation" You
think it would 60 into circulation? lido
not. You think this kind OF a stamp OF
the government would impart some
value or quality which it did not contain
before the stamp" was put on it? !
am cory that eminent authorities like
ourselves do not agree on that point. 1t
wond be outranked in value by the
Mexican dollar for the reaaon that the