The San Francisco call., 1896-08-14
1t Is Beginning to Disappear
From Circulation AL.
ready.
WHAT THE BANKS ARE DOING
They Will Refuse to Receive Silver
on a Par With the Royal Metal,
and Lines Are Drawn.

The action of Assistant Treasurer Berry
in adher1ng to the rule prohibiting the
redemption of silver or silver certificates
with gold has caused considerable furry
in financial circles in this City. Bankers
have had to follow suit in order to pre-
vent their gold being drained away by
spectators, and they now give depositors
credit for their deposits in the sa me kind
of coin or currency in which the deposit
is made.
Hence. if man deposits silver he need
not expect to draw out gold. He will be
paid in silver. Similarly silver certificates
will be redeemed in silver and not in gold.
There is a feverish feeling in financial
circles on account of the agitation on the
silver question. Preparations are being
made by the persons most directly in
interest to meet the result of the election.
If the decision of the majority of the
voters shall be that all the silver OF the
world shall be coined into American dol
lars by the mints of the United States,
gold will be at a high premium, for
silver dollars, because of their plentiful
uess, will b. cheap, and this fact will
work a revolution both in the industrial
as well as the financial world. Wages will
will rise, md the man who receives 81 a
day for his labor and pays 81 for certain
quantity of -four or other produce must
pay 81 so or even 81 for the same quantity
under free coinage. This will be equiva-
lent to reduction of wages.
W. ]. Bryan made this significant ad-
mission in his New York speech:
What is the test of honesty in money? II
must be found in the purchasing power Of the
dollar. An absolutely honest dollar would not
vary in its general purchasing power. 1t
would be absolutely stable when measured by
average prices. A dollar which increases in
purchasing power is just as dishonest as a
dollar which decreases in purchasing power.
Under both monometallism and bimeta1lism
the Government fixes the weight and fneness of
the dollar, invests 1t with lega[tender quail
ties and opens the mints to its unrestricted
coinage leaving the purchasing power of the
dollar to be determined by the number OF
dollars.
Mr.. Bryan's position, as here stated, is
the position Of the bankers and financiers,
and it is the correct position with refer
ence to the axiom that an increase in the
volume of currency decreases prices The
more dollars in circulation the less they
will buy.
The significant phrase of Mr.. Bryan's
remark is leaving the purchasing power
of the dollar to be determined by the
number of dollars"
Ihe bankers appreciate the truth OF THIS
statement If all the silver bullion pro-
duced in the world may be brought to the
United States and coined into do lars at
about double the present value of such
bullion the silver-mine owners will become
enriched, for their profit will be 100 pei
cent. For 30 cents worth of bullion they
will receive 81. Following Mr. Bryan's
statement as to the number of dollars
cheapening them, which is true, the
laborer who receives 81 day for his labor
will be able TO purchase for 81 only so cents
worth, or half of the goods which he now
gets for 81.
A report was current yesterday that be-
cause National bank notes must be re-
deemed at Washington the First National
Bank of this City had declined to receive
| them.
| S. G.. Murphy, manager of the benk
| told CALL reporter yesterday that there
| was no truth in the report. He said thai
owing to the action of the Sub-treasury
| officials the banks in order to protect
| their clients would refuse to accept any
more silver than they could pay out. He
added that short time ago some persons
| brought a large quantity of silver certifi
| Gates from the East, which they deposited
| and drew gold therefor. The present un.
| certainty and the agitation on free coin
age has increased the supply of silver
certificates, and the banks in order te
meet their obligations to their client.
have begun to do business by paying ou
silver for silver received and gold for golc
| received.
I'VE take only what silver we can dis
pose of, added Mr.. Murphy.