The Portland daily press., 1893-09-07
THE SILVER DOLLAR.

THE SILVER DOLLAR.
To the Editor of the Press:
/. While thanking you for your reply to
my questions, in your issue OF Sept 1st,
! still fail to see why the issuing of sill
yer certificates would work more harm
than an equal amount OF national bank
bills In both cases the government
stands behind the issue, and SO long as
the government is sound either would
be entirely safe, and answer all domestic
purposes.
In case of any trouble that might shake
the government credit the silver certlfl-
Gates which are based on something
that has market value the world over,
would be more sound than the bank
bills, which are based on the credit of
the government alone. Therefore | do
not see why, so far as stability is con-
cerned, the certificates do not have the
advantage.
.. AS to f1exibility, I think the advantage
still with the certificates. As under
stand the arrangements now parties can
take silver bullion to the Treasury and
get certificates. Silver certificates are
legal tender, bullion is not. The silver
mine owners take bullion to theTreasury
presumably because they want some
thing they can circulate as money. All
the certificates the government issue,
therefore, must get into circulation,
and once in circulation will spread out
over the country as the local interests
require. The advantage in the certiti-
increase which ought to have
a tendency to make money
plenty and plenty of money, ordinarily,
will make business good, from the fact
that people engaged in business enter
prises can easily obtain funds to carry
on such enterprises.
g. To my second question, which was:
would the passage OF free coinage
law by the United States raise the market
price Of silver bullion in this and other
countries to l. 1929 per ounce. II not,
why not?n You say: with the price
of silver as it now is, a free coinage law
would work this way About sixty
cents will buy enough silver to make a
silver dollar. Any one, then, having
sixty cents worth of bullion could take
it to the mint and get dollar for 1T.
With such an extraordinary profit silver
would undoubtedly rush in upon us
from all parts of the world.
But under free coinage would silver re-
main at it's present price? / maintain no.
The moment the United States said 1T
would pay 1.2929 per ounce for silver
yer bullion in this country would go up
to that price. This ought to bring our
silver dollar to a parity with gold in this
country at least, and instead of So cent
dollar that we talk about we would have
dollar worth 100 cents.
4. The amount of silver bullion in
sight" in this country, outside OF what is
held as currency bullion, represents but
small amount of money. AT the most
that bullion is all this government would
have to coin except the regular yearly
output of our silver mines, an amount
which believe the business of this coun-
try could absorb for an indefinite num-
Der of years without experiencing any
adverse results.
Now as to the silver bullion which
would rush in from foreign countries.
Foreign countries have no silver to dis
pose of except it be taken from their cir
culation. This they could not do with
out disarranging their whole monetary
system. If they sent it over here they
would have to pay transportation, 0
small amount, and lose the difference in
ratios, which would amount to about
three cents on each dollar, and then all
they would have would be United States
silver dollars, that could only be used
here, for we only agree to coin the bull
lion. If they took the dollars home they
would only be worth their bullion value
there, as they are now. There would
not be much profit for them in this tran
SacGlOn, WOulQ Unef0f
5. AS matter of fact for long series
of years the United States has exported a
large amount of silver bullion each year
to supply the demand of foreign coun-
| tries. If they have had to buy bullion
from us each year to supply their needs
it is not at all probable that they could
send much over here for coinage.
6. Under free coinage here with silver
bullion at 1899 per ounce, they, would
have to pay that price for every ounce
| they purchased here to meet their re-
quirements, beside freight charges. This
| fact ought, by all the laws of trade, raise
the price of silver to =. 1929 in their own
| market. When this occurred the balance
of trade could be settled in either metal
as suited our convenience.
Why is this not reasonab bic superstition,
looking at it from a business standpoint
A READER.
The letter of our correspondent in
wolves several propositions which may
best be answered in order:
L. 1t cannot be said that the govern
ment does stand behind the silver certif-
Gates 1t is true that the Sherman law
declares it to be the policy of the govern
| ment to maintain the silver and gold dol
lars equal in value; and our Secretaries
of the Treasury have done SO by paying
for silver with gold. But if the gold
should fail, as it has shown signs Of
doing, the Secretary could no longer
maintain the parity. The government
is under no obligation to supply more
gold; and SO far as actual government
obligations go to the silver certificate
would have to..rely on the deposited bull
lion for it's value. The national bank
note, on the other hand, is secured by
bonds which are good for their face val
ne in gold OF course catastrophe to
the government might shake the value
of the bonds, SO also it might result in
loss of the bullion which secures the
certificates.
2. Our correspondent misapprehends
the arrangement under which silver bull
lion is bought The Secretary of the
Treasury purchases 100000 ounces a
month in the open market. Silver own
ers do not take the bullion to the Treas
ba