Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1896-07-23
sllvss AND rns MONEY MARKETS.

States bonds are redeemable In coin,
neither gold nor silver being specified.
Greenbacks have . legal tender quail
hcation, but are also payable in coin.
Gold and silver certificates are payable
In the coin whose name they bear,
while treasury notes are payable in
coin. and national bank notes are mere
u promises 10 paw the bearer . certain
sum Of money, but without designating
- character. In taking up any Of the
notes, the government and the banks
are not under any expressed obligation
70 tender gold 10 their place, although
this has been the occasional practice
whom gold Va asked for, and there Is
no existing reason why silver cannot be
forced On the holders Of bonds, except
Ing that the government has preferred
% hand over the gold In order TO main
tain IL credit, and has thus established
: precedent Of which only an extreme
emergency would warrant the break
Ing. interests on bonds 10 paid, though
not arbitrarily payable, in gold, yet
this practice could be overridden ct
any time and both principal and inter.
eat b paid In silver without any
statutory provision TO that effect. The
latest Issues Of bonds we're sold for gold
and II d possible that the courts would
b called on to decide whether purchase
err from the government in good faith
were not entitled 70 demand and receive
the same quality or character Of money
= they themselves had given for the
bonds. Yet, In the absence Of . de-
cision By the supreme court, the gov
ernment has undoubtedly the legal
right - meet such obligations In silver,
no matter how injurious to Its own In
terests such : course might be.
The amount Of gold In this country IL
estimated from 400, O0O. 900 TO $500, 600.
900. Should the silver policy at 10 to /
b enforced this amount OF the circulat-
Ing medium would be withdrawn, and
both gold and coin certificates would
command , premium, this premium
being based on the dif-
serence between the market price for
silver bullion and IT. value on q geld
basis. Or 4l.2o3 = ounce, a. 4 result Of
the gold withdrawal, the money
markets would necessarily tighten, and
the expectancy that free silver will put
more Of the needful In circulation be
diminished IN exactly the same degrees
- = represented BY the gold now In
existanoe and passing In exchange At
20 moro than N equivalent for other
currency forms. There Il not enough
silver bullion 10 She country, including
the treasury deposits and the seignio-
raRe. - take tho place Of the gold: 1t
would require moUths and possibly
year. tor making the necessary changes
and IN the meantime the country would
suffer Tor : lack Of money instead Of
being benefited BY the plethora which
thu fres silver advocates 90 confidently
predict. There 10 now money enough
and tOapars for. the wants OF business,
y 4 shown By the low rates and high
reserves q I'll financial centers, but the
Withdrawal Of gold without the i'm
mediate establishment Of : sufficient
suhstitute would make money - tight
- are tho gates Of heaven againtt the
unboli0voro. There 10 no sentiment in
this question. II is : matter Of hard,
cold and regretAble fact. with every
atom Of Il against the silver theory.