The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1893-08-30
The Silver Dollars Buying Power.


The silver dollar buys as much as gold
dollar. Then why object TO the silver dollar
or to the unlimited coinage OF such dollarf
This Ia q question often asked by the advo-
Gates OF the free coinage OF silver. a. IL III j.
persons without bias. who have not taken the
| trouble TO consider by what means The gov
ernment has since 1879 kept greenbacks, as
well as silver dolars at par win sSlsa. sSsi ona ~
dollar OF our currency was worth but SS.7
cents In gold. IN July, 1870, five years after
| The war, II was worth but 81.6 cents In gold.
gold Til, under an act OF Congress-, the Secre-
iary OF the Treasury. In 1873 by selling bonds
accu RI ulated the slOO O,OOO OF gold reserve
now In the treasury tor the redemption OF
green backs. in case anybody should wish "
turn his greenbacks into gold. As soon az
the people saw that they could get 700 cents In
90 i'd for their paper money, dollar n dollar,
they ceased 10 take less for IL. And, as Is
gold was there 10 redeem their greenbacKs
they ceased to wish them redeemed, preierr-
ing redeemable paper " metal. az being more
con venient TO handle. Thus $a6,OOHoW OF
there. A reserve or SlOO0OOQ0 of gold was
enough for that purpose. Under clause OF
| the Sherman act and the practice OF the gov
ury Y TO keep ali the other Kinds OF money in
circulation at par with gold, but no further
accumulation or gold has been provided oy
law 10 do this work. In July, 1893, there were
sils 100000 Of silver dollars (nostly In clrcula.
tion Hs certificates,) sS46OOO, Of greenbacks
and about Sl40 10000 Of silver bullion treas.
ury notes-nr S9)O.OOO 00O In the aggregate-to
be kept at par with gold. on the Strength .oi
that lime this reserve had declined from sl93..
OOO,OOO in 1858, during Mr.. Cleveland's first
| term. 10 less than $lOO,U0O 0OO. This amount
dence in the governments ability 10 keep
5000 700 Quo Of greenbacks and 5Scent silver
dollars at par, especially as II has been seen
that this enormous burden Is being added to
| under the Sherman act by the purchase OF
1 4 500 OOO ounces OF silver per month.
Hence the panic. Gold was being exported.
What II the whole SlOO, ,O0O, 900 OF gold reserve
were Withdrawn from TIE treasury by hold.
notese Then the gorerunent II was seen,
would not be able to keep the 65-cent silver
dollar al par with gold. There was good
reason 10 fear this since The excess OF gold
1891 $40, ,0GG, ,000; In 1892. when our exports OF
crops were exceptionally large, Sl3. .0OO0tD. In
1893 gold exports have been on vastly In
creased scale. To July !. 1898. sl4oeo ,C0 OF
man act, but our net xports Of gold In the
same time were Sal OOO,OOO. The goodness OF
the silver dollar being dependent on the
ability of the treasury to exchange gold for
| II. the holder OF IL, investors and Others, be-
came alarmed at the prospect OF the treasury's
| losing all Its gold.
as much az the gold dollar is clear from the
foregoing. or the silver dollar IS cents H.
gold value and the rest is fiat. or mere i'm
piled promise TO pay. So long IN the gold re.
yer dollar will continue to be worth 100 cents,
because the treasury will be able TO give, In
effect, a gold dollar for It.. Clear out the gold
| reserve and the Rils er dollar will go for only
what the silver in 1t is worth-55 cents. Free
coinage IL folly because 1t means multiplying
light dollars enormously, and 30 making II
Impossible for the treasury " keep the liver
With free coinage the silver dollar would
speedily lose half Its purchasing power.-Bal.
tIInOre Sun.