The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1893-08-22

"The silver dollar buys as much as a
gold dollar. Then why object to the
silver dollar or to the unlimited coin
age OF such dollarf" This is question
often asked by tho advocates OF the
free coinage OF silver, as IL 1t proved
their case. IL is often asked also by
persons without bias, who have not
taken the trouble to consider by what
means the government has since 1873
kept greenbacks, as we'll as silver dol
lars, at par with gold. 1t will be re-
membered that In July, 1864. one dol
lar OF our currency was worth but 1871
cents In gold. In July, 1870, five years
after the war, 1t was worth but $40
cents In gold. The greenback was not
brought to par with gold till, under
an act OF Congress, the Secretary OF
the Treasury, in 1879 by selling bonds.
Accumulated the 500, 900. 500 OF gold
reserve now in the treasury for The re-
demption OF greenbacks, IL case any
body should wish to turn his green.
backs into gold.
As soon as people saw that they
could get 100 cents in gold for their
paper money, dollar for dollar they
ceased to take less for 1t. And. as Ia
usual In such cases, as soon as they
saw the gold was there toredeem their
lgreenbacks they ceased to wish them
redeemed, preferring redeemable paper
Ito metal, as being more convenient to
handle. Thus S34G, 000,0 600 OF green
backs were brought to par and KEEP
there. A reserve OF 800, 900, 600 oil
gold was enough for that purpose
, Under clause of the Sherman act ant
the practice OF the government. 1t has
I been the policy of the treasury to keel
all the other kinds OF money III circu
,llatlon at par with gold, but no further
accumulation OF gold has been provid
led by law to do this work.
In July, 1893, there were $40, 00O, O0(
. oi silver dollars (mostly in circulation
, las certificates 1916 coo 900 OF green
ipacks and about $4,000. 600 OF silver
, bullion treasury notes-or $500, O0O, 0Ot
. lin the nggregate-to De kept at pal
with gold, on the strength OF the treas
alury's dwlndlinR gold reserve. At thai
4 ltime this reserve had declined from
/ Sl93, DOC, 600. in 1855. during Mr.. Glove
Glands first term. to less than 500, 600,
loco. This amount of gold has beer
oIinsufficient to inspire confidence II
a the governments ability to keep $500,
: coo, 600 of greenbacks and 55-cent sill
lver dollars at par, especially as 1t has
lbeen seen that this enormous burdei
lie being added to under the Sherman
= act by tho purchase OF 4, 500, 900 ounce
: of silver per month.
n Hence the panic. Gold was beini
tlexported. What If the whole 800, 600,
$1,000 OF gold reserve were withdraw
: from the treasury by holders o
i, lgrcenbacks. certificates or treaeur
elnotes? Then the government.
: was seen, would not be able to kecl
1.-THE 55-cent silver dollar at par wit
n
y lthls, aince the excess OF gold export
9 lover imports in 1890 WIS $4,000, 600
8 in 1891. SI2, 900, 900; in 1892, when GU
d lexports OF crops was EXCEPTIONAL!
sIarge, $4,000, 600. In 1898 gold export
i-Ihave been on vastly increased scale
el To July /. 1893, $40, 600. 900 OF treas
Jury notes were Issued under the Sher
Imam act. but our net exports OF golt
lin the same time wero Sal, 900. 600
The goodness of the silver dolla
9 being depend Ont on the ability OF tn
s Treasury to exchange gold for 1t, tn
}, holder Of It, investors and others, be
y came alarmed at the prospect OF tn
q treasrry's losing all its gold.
RI The reason why the silver dollar nov
buys as much as the gold dollar !
clear from the foregoing. or the 81
D Yer dollar So cents is gold value an
the rest Is fiat, or mere implied pre-
u mise to pay. So long us the gold re
d serve Is maintained at Washington tn
? silver dollar will continue to be wort
n 100 cent?. because the treasury will b
: liable to give, in effect, gold dolla
'rIfor it. Clear out the gold reserve an
II the silver dollar will go for only VIVA
i the silver In 1t Ia worth-55 cents. Ere
y coinage is folly because it means mu
l. Implying light dollars enormously, an
$50 making 1t impossible for the treai
L Jury to keep silver dollars and greer
l backs at pur with gold. With ire
coinage the silver dollar would speet
lily lose half its purchasing power
IRalto Sun