The Coconino weekly sun., 1896-09-17
Boutwell, on Silver.


 the treasury from 1869 to 1873, senator from Massachusetts and member of the government silver commission in 1876, gives in the Boston Herald his judgment on the present silver situation. It is partly from the so called "goldbug" point of view. He says distinctly that the demonetization of silver in 1873 was not an accident, nor was it inserted surrep- titiously in any legislative act. It was accomplished on distinct recommenda- tion of Mir. Boutwell, to congress in his financial report for December. 1879, "The country had due and full notice of the policy promised!"
 Mir. Boutwell, then recalls the fact that in 1860 the American silver dollar was worth more than the gold dollar by About cents. By 1873 the gold dollar had become about per cent more valu. able than the silver one, and there was neither gold nor silver in circulation. Boutwell, says he foresaw the future of the two metals:
 At that time the power drill had been in. vented and its value established. The use of dynamite was we'll understood and the number and riches of the silver mines in the Rocky mountains justified the conclusion that the silver would deteriorate in value with each succeeding year.
 On t!:is theory of the then future my policy was based.
 His theory of coinage metal is as fol- lows: "The intrinsic value of a metallic currency should correspond to its csm. mercial value, or metal should be used only for the coinage of tokens redeema- ble by the government at their nominal value"
 In 1876 the silver commission made it's report in favor of resuming the double standard and the coinage of silver with. out delay at a ratio to gold of l6 to 1. Mir. Boutwell, dissented from the ma jority report and made one of his own. It was to the effect that since Germany had demonetized silver, and the other countries of Europe had closed their hints against its coinage, the United States should call an international con- ference. He said:
 Ut is expedicnt for this government to cx- tend an invitation 10 the commercial nations of the world to join in convention for the pur- pose of considering whether 1t is wise to pro- vide by treaties and concurrent legislation for the use of both silver and gold in all such na- tons upon fixed relative valuation of tho two metals"
 As to the project for the remonetzation of silver without the cooperation of other com mercial countries, said: Ut is to be appre- hended that the remonetization of silver by the United States at the present time would be followed by such a depreciation fin its value as to furnish a reason against the adoption of the plan by the rest of the world and that an in- dependent movement on our part would in- crease the difficulties rather than diminish them. However that may be- the undersigned Is of opinion that the introduction of silver as currency should be postponed until the effort to secure the cooperation of other nations has been faithfully tried"
 However, the majority report was adopted, and the United States decided to go it alone on the resumption of silver coinage, believing she could carry the rest of the world with her:
 The coinage of Silver was authorized, and an invitation was then extended to other nations to join us in the use of silver as a currency. Having abandoned the vantage ground we oc- cupied as gold producing and gold using country, it was in vain that we invited other commercial natiSns to follow our example. In 1876 we were the principal gold producing na- ton of the world, our finances were in . healthy condition, our foreign trade was pros- | using nation and defled the world.
 Had we pursued that policy it is not improb. able that, with the heavy trade balances in our favor since 1876, even England would have been compelled to resort to the use of silver. In 1870 we were the masters of the situation, and VIC could have maintained the gold stand ard to our own advantage and to the financial peril of all Europe.
 We are now practically silver coun. try. Mir. Boutwell, does not see any great peril in that fact, however, unless the state bank system is restored. Then he thinks both the state banks and silver will be more than the national govern ment can carry. He believes that fur. ther legislation in the interest of silver production would be as much class legis. lation as lawmaking in favor of wheat or iron or any other commodity.
 The immediate remedy for the present situation. he believes, would be for the United States government to return to its former policy of requiring customs duties to be paid in gold. By that means an adequate supply of gold could be had for the treasury without incur ring new obligations. To the objection that this would be discrimination against silver he replies that it is dis crimination forced upon us by events. To second objection that might be urged against this course he answers:
 The collection of the customs duties in gold l will add somewhat to the protective features of the tariff system. This statement is true in some degree, and its assertion is an admission ! that a difference exists and that silver as a currency is not as valuable as gold. The change may lead to q decrease of importations, and thus indirectly the balance of trade may be af. fected fayorah,y and he ma mn act urinp inter.