Omaha daily bee., 1896-08-01
PART III.

liberal use OF silver but which anticipated
danger from a too abundant use Of a de-
preciated coin.
Tho Bland bill, which passed the house Of
representatives, provided for the free and
unlimited coinage of silver. The Allison
amendment in the senate changed the bill
into the form In which II became a law.
There are two important features of this
act. The first is the proviso which directed
the secretary of the treasury to purchase
each month not less than $4,000, 900 worth
and not more than 81, 900, 900 worth of silver
bullion, which bullion the secretary OF the
treasury was directed to have coined into
standard silver dollars.
The second important provision of the
act is the proviso in section 1, that there
shall be coined silver dollars OF the weight
of 412la grains, troy, standard silver, which
coins, together with all silver dollars here
tofore coined by the United States, shall be
legal tender for all debts and dues, public
and private.
Since the act of 1873 all the standard
silver dollars Of the United States coined
prior to 1873, as well as all the standard
silver dollars coined since that time, are as
much a legal tender for the payment of all
debts, public and private, as in gold.
Standard silver dollars today are as
much a legal tender as they were before the
so-called decentralization of silver in 1873.
While prior to 1873, under the Jefersonian
bimetallism, there had been coined, but
IS, 600, 900 in standard silver dollars, which
were legal tender, there are in the United
States today 4l3, 600, 900 of standard silver
dollars, every one of which is OF full legal
tender value.
BY the act of 1878, the republican party
has given to the country more than fifty
times as much legal tender silver money
as had been given to the country from 1872
to 1873.
II it is silver money the people want,
why ask for a return to Jeffersonian BIZ
metallism. which was apparently unable to
put standard silver dollars into circula-
ton?
CONTRACTS PAYABLE IN GOLD.
I note that the free silver men constantly
draw attention to the fact that the act OF
1873 put a Limitation upon the legal tender
quality of the standard silver dollars, to-
wit: Except where otherwise expressly
stipulated in the contract"
This clause did not take away any part
of the legal tender quality of the standard
silver dollar.
Tho right OF individuals to make a con-
tract that a debt shall be paid in coin or in
gold had been recognized by the supreme
court of the United States prior to the
passage Of the act of 1878.
1t was the recognized law of the land that
individuals could make a contract to pay
their debts in any kind Of money and that
such contracts would be enforced.
The provisO In the act of 1878 simply
recognized what was the existing law Of
the country.
Be that as it may, the commercial trans
actions of the world are not conducted under
contracts specifically providing for payment
in gold.
About the only kind of contracts of which
wo people in the state of Nebraska know
anything, which provide for payment in
gold, are a limited number Of mortgages and
some municipal bonds.
Such contracts, however, In a general
way have only come into existence since the
revival Of the agitation of the silver ques-
ton, which is a constant threat to the
man who loans money that his debt is
liable to be paid in deprecated silver.
So long, however, as this country Is able
to maintain its standard silver dollars at a
parity with gold, there is no trouble in
having any creditor receive them, even
though his contract provides for gold, while
in the commercial transactions Of the coun-
try no such thing is known as a dis
elimination between gold and standard silver
dollars.
The act of 1878 was passed by the con-
gress of the United States to aid, If pos
sible, in the maintaining of the value Of
silver coin. as well as to add to the volume
of money, to satisfy a public clamor.
The time was near at hand when the
government proposed to resume specie pay
ment. The same people who today are
organized into the free silver party are the
DtISOIlS WHO udu SUCH IL nOIIlu uTtuu OF
the sight of gold that they even opposed
the use of gold as money, and made objec-
tions to the resumption OF specie payment
Every free silver man preferred silver to
gold, as silver was a cheaper money.
Every gTeenbaCk man favored paper in
preference to either gold or silver, as 1t
seemed to be a cheaper money than either
metal.
This peculiar opposition to the resump-
ton of specie payment and to the use of
gold WAS one of the Immediate pauSpS which
led to the act OF 1878.
FAILURE TO MAINTAIN VALUE OF SILL
YER.
There were many people who believed that
the act of 1878, which provided for the coin
age of about $50, 900. 900 a year of standard
silver dollars, would restore silver in value
to the ratio of 16 to l with gold.
No such quantity Of silver had ever been
coined before In the history of the United
States, and yet silver kept on declining in
value.
In 1878 the ratio OF silver to gold was
1874 to /. while in 1880 the ratio had be-
com 1876 to /.
The easy solution OF this fact was the
greatly increased production Of silver.
IN 1878 the worlds production OF silver
was, at its coin value, S95, 900, 900.
In 1890 the worlds production OF silver
at Its coin value was S172, 235, 900.
1t will be observed that in a period of
twelve years the increase in the produc-
$3.50 - SA'N' '1s ~ wv lNi tNiN. ahu
y. the most sanguine of free silver men
will not pretend that the commercial and
business industries Of the country had In
creased In any such ratio.
In 1873 the silver produced In the United
States, according to its coin value, was
si5, PSI 1856.
In 1890 the silver produced in the United
States. according to its coin value, was
$40, 464 900.
Thus We see that the increased production
OF silver in the United States from 1873
10 1890 was nearly 80 per cent; in other
words, the amount Of silver produced had
nearly doubled. This was a rate OF in
crease far beyond the commercial develop
ment OF the country.
II ACT OF 1890.
Our free silver friends, Notwithstanding
the act of 1878 had been adding silver to
the currency OF our country at the rate OF
nearly $50, 100000 per year, still dissatisfied,
kept up their agitation in favor Of the FREQ
and unlimited coinage of silver.
The persuasive influence OF the silver
mine owners, and OF their d~evotees, in
ducod the congress OF the United States to
make another effort to increase the silver
money OF the country, and to restore the
value OF silver bullion.
The act Of 1890 provided for the purchase