The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-12-06

Letter Prem Judge Orange Jacobs on
the Curreney 0aestion-

Letter Prem Judge Orange Jacobs on
the Currency Question
SEATTLE. Dec. s. 1894
To TEE ERROR: As that portion Of the
unsoIved financial problem. which forms
the subject OF thi. communication, Is Of
Local rs well IS general interest. SUBMIT
the following IS an embodiment Of my
views. briefly stated. on the subject:
First-I would retire al bank notes and
gold coins under the denomination OF $40
10 order that such retirement might not
result IN o decrease OF the volume OF the
circulating medium. / would provide for
the recoinsge OF the gold coin pieces under
$40 and the issue of notes Of . higher de-
nomination equal in amount 20 the sum OF
the. smaller notes retired. The pollcy
abo We recommended has been heretofore
adopted. TO limited extent, by the gov
eminent. in the retirement and recoinage
OF the 81. 81 50 and IS gold pieces, and the
retirement of the whole volume Of frac-
tional currency. What / recommend Is
but further extension of this wise policy.
Every one at eli acquainted with the sub
iect knows that this fractional currency
drove silver out of circulation in all the
states east of the Rocky mountains, and
that on its retirement silver took It's place
but more of this further on
Second-In order that the policy above
indicated might not spend its force on the
debtor class alone, / would validate the
tender OF 10 per cent OF all debts con-
tracted after the passage of . law embody-
ing the policy above indicated, In silver
coin OF the government standard ana
weight, and l would prohibit as unlawful
ell specific contracts in coutravention Of
such policy, and VI need be enforce it with
stringent penslties. Possibly such legis-
lation might be objected TO a. unconstitu-
tional
While do not propose to argue the
question / deem the objection unsound.
II the government is powerIess to declare
what shall De q legal tender for debts and
to enforce it with prohibitory provisions.
il is time for the American people to know
it. / would, however, recognize the
equity of the situation by Allow ing the
creditor to fulfill all loan contracts, if he
so desired. by the tender of the same rate
per cent. in silver dollars allowed the
debtor in repayment. This could harm no
one. as the policy or law could only affect
contracts made after its enactment.
Third--It is manifest. Mr.. Editor. that
the object of ali this Is TO make . place for
silver in the currency of the country, and
TO make 1t equally the money of the rich
as well as the poor. Without q place for
silver il 10 idle to talk of a bi-metallic
currency and parity OF values. l have
already spoken of the effect produced by
the retirement of the fractional currency.
Silver rapidly took its place. We are,
therefore, not left TO speculation as to the
effect of the retirement of the gold coin
and bank notes uuder SO. Since writing
the above | see that the policy recon-.
mended here has been partially recon-
mended by the president in his annual
message. The percentage recommended
would further increase the use OF silver
and strengthen the parity of the two
metals which it 10 the declared policy of
the law to uphold.
Fourth-With the above modification
of existing laws l am in favor of the free
coinage of all the silver taken out of the
mines located in the United States of
America. This is the position of the Re-
publican party of this state as evidenced
by the solemn declaration of the late con-
vention of that party. Its a conservative
position, equally opposed to the policy of
the radical silver advocates as well as the
selfish and grasping policy of the mono
metallists. The objections TO this policy
are in my humble judgment unsound.
Let me briefly notice q few OF them.
First. it is asserted that such q law could
not be enforced. This is q mere specula-
tive declaration without one scintiila of
historic evidence to support it. 1t needs
no other answer. Second, it is said such a
law would be violated. What then? Laws
for the protection of property and for the
security of persons are daily violated. Is
this any argument against the policy or
rightfulness of such laws? An argument
that proves too much is worthless. But
third, ii is said we must have an interna-
tional agreement Well. I had supposed
we had been Inundated quite enough in
our humble supplications in that regard.
If We are anxious for more, presume
England is willing to give it. Ia it true
that one or two objecting nations can die
tate the fiscal policy of the world so far at
least as silver is concernsd7 But l deny
that any such international agreement is
essential to carry out the policy proposed.
1t is purely domestic. Custom duties can
be paid in gold as heretofore.
o. JACOBS