The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-02-07
wHAr 4 sILvER BAsIs MEANS.

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WHAT A SILVER BASIS MEANS.
The New York Tribune says there are
persons who consider 1t absurd to feaI
that the country will fall to a silver
basis. Others, win, realize that the thing
is possible, do not see how, and there
fore they contrive to bring about the
very result they fear. The thing in
question is not at all one of theory
about which men may dispute indef-
nltely. II is simply change Of fact,
which will be determined absolutely
ny the opinion and action of men in
business on both sides of the ocean.
The first step. of course, would be
the establishment Of premium on
gold. Whenever gold becomes so
scarce. either through expectation or
such boarding as has taken out Of the
treasury sS2OOO.OoO in January which
has not gone abroad nor into the
Tanks, somebody who wants gold may
pay s1Ol in paper for 500 in gold
This is not yet change OF basis, but
only a loss of basis; instead of being
worth the gold 1t promises the paper
becomes worth somewhat less. But
the moment premium appears all
holders Of gold viii try to get It, and
anticipate that II may increase, and
viii therefore hold their gold in the
hope Of realizing an increase This
necessarily tends to a sudden with
drawal Of all gold from active cIrcula.
tIon, and 1t obvious enough that the
treasury would be quickly compelled
to pay out the last dollar and ounce OF
gold. that It has. or else to refuse re.
demption Of notes excepting In silver.
The exhaustion OF the gold reserve
might come almost in day. because
the treasury holds in excess OF gold
certificates outstanding, only about
sS5.0OO.O 900 both OF coin and bullion, and
the New York banks alone hold nearly
double that amount Of legal tenders
redeemable in gold.
should the treasury decline to re-
deem notes except In silver. the pre-
MUM on gold would naturally rise
with rapldity. II is impossible to say
how far II might rise within any given
time, That would depend upon the
extent Of foreign Withdrawals Of cap
ital from this country, and upon the
speculative disposition OF the people
to realize profits by an advance in the
premium. There are some who reason
that, as the greenbacks did not de,
preclate much for year after they
were issued, so the currency now In use
would not But the first Issue OF legal
tenders was Of small amount, and only
s0sOOo.OOO by the nrst of July, 1862, ana
besides they gave the people for the
first time a legal tender paper, which
many dld not at once expect 10 de-
preclate at all. The notes, moreover.
were redeemable in gold. and were ex,
pected to be redeemed as soon as the
war ended The paper now outstand-
Ing is IN volume thousand millions,
and the people have learned by years
OF loss and suffering that it Is liable
to depreclate greatly II not kept re-
deemable. It is legally redeemable In
silver coin now worth about SO cents on
the dollar,so that. Il payment In gold
should stop, there would be no assur-
ance that this paper would be redeem
able except In silver. And II redecmabls
only IN silver. It would be worth nc
more chan silver coin.
such currency might quickly depre-
clate 80 Tar that men would give 50 in
paper for 81 in gold. Between per
cent and 100 per cent. there would be
no rational stopping point for the pre-
MUM. no point at which its rise ought
70 be arrested short OF the difference
ID market value between gold and sill
YER bullion. when the time comes that
redemption In gold has entirely ceased.
and the premium on gold mounts tow
,rd me difference between gold and
'lIper bullion. fnen the currency win
have 30 other than a silver basis. Nc
Inun can tell how quickly that change
i come after sold redemption had
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