The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1895-07-04
THE SILVER QUESTION.


| SIlNer deprecated y luS monetary DIsuse
To the Editor of the Press:
Failing to find cause for the deprecia-
ton in the market of silver bullion on
one side of the equation-excess of sup
ply or over production cause for
that depreciation is found on the other
side of the equation-diminution of de-
mand.
The market price of barley being main
tanned by demand created by its princi-
pal utility, viz, its superior mailing
qualities, if it should be wholly or par
TALLY disused as an element of malt
liquors, it might still be produced in
lesser quantity but would be sold at
much lower prices for is secondary and
inferior uses, for provender and for bread
stuffs. Just SO the metal silver having
maintained, in spite of very considerable
fluctuations in the cost of its production,
market value determined by its primal
utllity-as the raw m aterlal out of which
coined money is made-when the demand
for that use was restricted by it's legal
demonstration, partial at first, but, by
| the contagion of bad example, threat
ening to be universal and permanent, it
fell to the prices determined by greatly
lessened secondary demand for it, for
uses for domestic utensils and plate. 1t
followed inevitably the conditions pre-
scribed priori by well known economic
laws. Every intelligent person must
admit, that if gold had been subjected
to the same treatment for the same length
of time, it would have suffered the same
depreciation, whatever might have been
the cheapness and abundance of it's pro-
duction, that is, under conditions which
its natural scarcity and necessary cost
impose.
When people undertake to say that silver
was degraded from its monetary function
Thorough prudential and economic con.
siderations, because it had become abun-
dant and cheap they exactly reverse the
true historic sequence.
NO EXCUSE FOR SILVER DEMONE.
TIZATION IN ENGLAND.
At the time England withdrew from
silver coins, except for small payments,
their legal tender quality (1S16) or at least,
when that legislation began to take effect
for specie payments were suspended in
England by acts of Parliament from 1897
to 1921 period of "a years-there was nc
pretence of any over-production and con
sequent cheapness of the metal silver II
was while the mi.-ing operations of South
Amortization almost the sole source OF
supply-were interrupted by revolutionary
convulsions that greatly lessened silver
production. 1t was at time when the
bullion price of both gold and silver were
actually above the minot price, and when
severe laws were enacted by Parliament
to prevent the expectation and the melt
ing down of the gold and silver coins, in
order to gain their higher metallic price
laws which were not repealed till 1922,
and until after the resumption of May /,
1921 had restored the equality between
the merchandise and the mint values Of
the metallic coins of the realm.
NOR IN THE UNITED STATES.
just SO when in 1878, in the midst of g
period of suspension as in England and
disuse of all coin, by an act of ignorance
and carelessness rather than of malice
prepense, the American Congress under
took to demonetize our silver currency, il
was not because silver had become over
abundant and cheap. AS then rated sll
yer was at an actual premium of nearly
three per cent as measured by gold, ant
it was in pursuit of cheap dollar &
buzzard dollar, a 81 cent dollar, now con
sidered so reprehensible, that we abstract
ed so much from the existing gold cur
rency, reckoning, as was the fact then an(
| cincp that cilvpr hn n
abstract value, and thatfuctuations mus
be measured in the rise or fall of gold
To break up commercial usages that ar.
older than civilization, to destroy ant
cancel one half the basis of the world
credit and business has been long and
painful process. Let us recapitulate thu
several steps in this reckless and desper
ate assault upon the industrial and com
mercial prosperity, and the earned capita
of the people of all civilized countries VIII,
are doing the worlds work and produc
ing its wealth.
The first blow struck was the EngliSl
Parliamentary act of 1916 utterly gratui
tous and excused by no exigency in thu
actual condition sSof the bullion marke
or of the mining industry, but very con
sequential and disastrous by reason of thu
leading position of England in commerce.
and manufactures, and in command O.
the great bulk of the working capital O.
the world.
PREDICTIONS OF DISASTROUS CON
SEQUENCES
The measure was not consummated
without strong opposition, and predic
tions of the disasters which would follow
it that have been singularly fulfilled.
memorial was presented to Parliament il
1914 which dac1arod.
"The measure will result in forced
precipitate and highly injurious contrac
ton of the currency, which will ado
greatly to increase the pressure of the
taxes, to lower the value of the land and
of commercial property, seriously to en-
barrass both public and private credit, te
embarrass and reduce all the operations o.
agriculture, manufactures and commerce.
and throw out of employment great pro
portion of the industrious and laborine
classes of the community.
:. In 1871, when English doctrinaires were
pushing the crusade against silver into
other countries, Ernest. Seyd made thi.