The Portland daily press., 1896-08-10
OUR SILVER IN CANADA.
American Silver Coins Generally Refused
in Montreal-A Montreal Bankers
Opinion of the Effect of Free Coinage.
Montreal Star.

(Montreal Star
| During the past few weeks the Montre-
al public have been awakening to the
danger that turks in the circulation in
Canada of the silver currency of the
! United States. One by one the leading
institutions of the city have dropped into
line following the example set some time
ago BY the banks, until today the silver
currency of thu Republic is drug upon
the local market. Men whose experience
goes back generation have been SPEAK
| ing of another silver nuisance, aud O re-
porter OF the Star spoke on the subject
to Mr.. William Weir, president of the
Vile Mario bank, member of the
committee appointed by the Bankers
section of the Board of Trade to consider
! the question, and well known as the
agent of the government for the removal
of United States silver from CANADA in
1870.
In answer to question, Mr.. Weir said
that the position of United States ourren-
cy in Canada at the present tins is en-
| tlrejy different from that which is held
| from the commencement Of tbs war in
1869 to 1870 The suspension OF specie
payments by the United States at form
er date entirely suspended the use OF gold
and silver as currency, and each metal
was disposed of at It's bnllion value or at
the best price that could be obtained for
it in different countries Over ten mil
lion dollars of United States silver coin
was disposed of in Canada for gold at q
discount OF from three to i've per cent,
while probably Il still larger Quantity
was exported to the South American re-
pQblics and to the West Indies, notably
to Cupa. In all of these countries the
subsidiary silver coin Of the United
States passed at par in ordinary transae-
tions. The redundancy of this coin, how
ever In Canada, Immediately brought it
to discount for banking purposes, and
from 1862 until 1870 the discount ranged
from two and half TO five per cent,
while the coin was received at par in re-
i tail transactions and in payment of
wages throughout the provinces Of. Quebec
and Ontario except in the city of loren
to, which adhered to the rate'of So cents
on the dollar. The oonseq uence was that
every retail merchant 90 meeE his engage
ments at the bank had to sell his silver
at the brokers' Offices at discount, and
for years there were from rs to 80 e1-
| change brokers in this city alone, who
bought from traders from five TO ten
thousand dollars daily which they again
sold to man ufacturers and produce ner-
chants for the pas ment of wages, and in
the purchase of grain and other agricul-
trural products. The removal of this
heavy burden by the dominion govern
ment during the administration of Sir
Francis Hicks as finance minister. by pro-
claiming it legal tender for only 80
| cents on she dollar and purchasing all
| the silver offered for thu 90 months at 5
per cant discount, during which period
over five million dollars were exported,
Ixrta 81 ,+,.r1 Il /.
Sir Francis Hicks the most popular man
of the time.
THE LOSS TO CANADA.
| The present situation in Canada as
regards United States silver" continued
Mr. Weir, is Of different character.
This coin, except when defaced or worn,
passes at par in the United States, and
SO long as that country remains on
gold basis no such silver nuisance as we
had at the time I spoke of is likely to
occur again. On the other hand, should
the United States come to silver basis
instead of gold the loss of it's silver cir
eulating in this country will be much
more serious, and today the atcual value
OF the Subsidiary coin is certainly not
over so cents ON the dollar, while during
the war the difference. between gold and
| silver was but little more than i've por
| cent,
There is another danger in the acou-
mutation in Canada of the United States
silver coin. The Canadian government
can regulate the quantity of its own coin
age in circulation, but it cannot control
the overflow FROM the United States
should our people accept it at par. Their
continuing to do so, is also serious loss
to the Dominion exchequer, as at the pres
emit price of silver bullion there is q very
large profit upon coinage. Every hum
dred thousand dollars of silver means
profit of forty thousand dollars, which
our government might just as we'll have
as that of the United States.
| 4 Ii was this state of. affairs that in
uuced the bankers section OF the Board
OF Trade some time ago, said Mr..
Weir, 'to appoint MIR. Thomas McDougall
and myself deputation to wait upon
the government unon the subject. You
have already published our report. and
| need not discuss it here. Since then
the Board of Trade has named as COM
mlttee adding Mr.. Crombie. Action on
our parG has been delayed by the general
eiections hut will no doubt be taken at
an carly day.
In She meantime the discussion in the
newspapers has led to very general re-
fusal of these coins in this city as well
as elsewhere, and it may be that this
movement will render action on the part
| OIL tne governments unnecessary. Already