Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-02-07
What a silver Basis Means.

Thera aro po,s..,a -
pN'9o"' ""o consider ~ alb
W AoAi 'h"v ohe country VIII fall to II
sn'er pasis' others, who realize that the
tnlng Is possible. do not see how, and
therefore they contrive to bring about the
very result they fear. The thing in ones.
ton is not at all one of theory about
which men may dispute indefinitely IL
is simply n change of fact. which will he
determined absolutely by the opinion and
action OF men in business on both sides Of
the ocean.
The first step. of course. would be the es.
adjustment of a premium on gold When.
ever gold becomes ga scarce either tbrongl
expectation or through such boarding "a
has taken out of the treasury $40 0oo ON
in January. which has not gone abroad
nor into the banks. somebody who wants
gold NAV nav SOL in paper for 800 in
gold. This is not vet chance Of basis
but only a loss of basis: instead Of being
worth the gnld n PROMISES tho n,n,r ~.
comes worth somewhat less. But the mo.
ment a premium appears all holders Of
gold viii try To get IL. and anticlpate that
h may increase and win therefore hold
their gold In The hone OF REALIZING m ~.
craasr rbis necessariIv tcnas r. sra
DO, ,y;,l,l,,,voI If All gold fr,m acti.a
c,rc,,lo,tor ,,1 n "a obvjore eno,,,,h ma
,I,,, ,r,,s,,r, ,,.e,,ll Ia o,tclrl,, ,,,,,ollo,
to nav ont tho last doIiar and annrc ~
ia T. hos or 49,. 81 rcr,,s, ralc,,n,i,, ~
Noes oxce,,t,n., 4, silvor The cxbn,,stlo,,
~ ~, M rss,.rv might como ol,,,ost h,
n dav bccanse the treasury holds in en-.
coss ~ ,,old certificates outstondine. only
ehout 81 600 o3o roth Of coin ana bl,lljon
and the Noyv y,rk banks alone hold
,,,,.,,,r, ,.,l,te that a,ro,,nt ~ Ie,,l ION,
dgrs y...lc,u,alle fn cold
sbonld the treasury ,ectlne 70 reaee,n
notne cvcert in silver the t,ra,ri,,m ~,
r,,ld woula naturally rjse wIth rroidlty
II IL i,,,,,nsslbl,, ~ saw how far 4. p,i,,if
~. ,,,tfiii,, nf,,, f.,ten ,ir,e trhst ,vonia
l,.-,,.,,d ,,,,,, ~. cxAe,,t ~ enr,i,,, ,,.ifj,
,l-',.,',ls ~ c,,,,lsal from tbis noi,ntrv and
,,,,.a ~. so.s-,,IotIve diqoositton ~ ,le|
,,5,,,,,, tl realize oroflis by an advance In
m. ,,-a,,f,,,, Tbere ars sgr1e Who r,osr,,,
,t,,. -, M t-rf,a,,l,srlss hi NOS drprsci.fa
49,, frr d, car af,sr tbcv VIZ. gr.t
- j., ~, ..,r~~sp,., n,,yy la ,,e, .vs,r,i,l
-, a., 49,, f7-st Iss,,, ~ 1.,,,l ,,rI,-.
80 - s,,,ll .,,,u,,nf es,,i only S5l g9ft,a|
i,,, .T,,i,t ASA s,d h,.lles tbeg g.g, ti4
,,,,,i', FOR tbs grst tlfie "a lesal tender
,,,s,.r ,gbtelt t,,a,,v did no, 40 aacs eyre,,
q, ,l.,,-,r,st, a. Ia tins na,ee. .i4.elvef.
,ys5, r-..l,,r.r..ls in Gala. .ut ,r9f, a.-
,,,-,..i Il, Ia. ...aealnsa a., s3sl as H., 80.
,,,i,a syba n,n,r now 5uta.andfar Is IN
r.,t.,,.,, % tl,,,-,qand. millions AMI shs pe,.
Mo t.avs lsarlta,l by yea9s of loss nnI stl;.l
f,ri,.., chm, &c h Liable 70 ,esrccift,.
realty II NOS kent rcdeernabie Il isl
ics,ll{g ~ lps.f,aI,'s IN silver coin MIX
worth about 51 cents on the dollar, So til..f.
n payment in gold should stop, there
would b. no assurance that this paper
would ever be redeemablc except in silver.
Aud IL redeemed only in silver. IL would
he worth no more than siyer coin.
Such a currency might quickly deprc
n;a.. a., f.r ,Ftar ,,,cu y-ould ,.iyn - IL,