The San Francisco call., 1896-08-08
WHY AT PAR.

When Major Mckinley told delegation
of workingmen that. .''our currency to-day
is as good-all of it is as good as gold-and
it is the unfaltering determination of the
Republican party to SO keep and maintain
it forever" he combined a great truth
with solemn pledge. When bimetallism
comes the money of the country will be as
it is now, absolutely without varia bleness
in standard of value. Commerce knows
nothing about parties or party politics,
but it does know when the circulating
money of people is unstable and f1uctu-
ating. and with such money commerce
will have nothing to do. Had Major Nc
Kinley talked to those workingmen a
week he could not have given them, the
country and the commercial world more
positive assurance that our currency is to
be maintained at par forever.
But how is it, some may ask, that silver
is kept at par with gold when its bullion
value is little more than half the value of
gold? A standard silver dollar is a legal
tender for customs and excise duties, but
It is not the legal-tender quality of the
silver dollar that holds it on a parity with
gold, nor yet because it is interchangeable
with gold, for it is not Interchangeable.
In fact, no two kinds of our money are
interchangeable under compulsion, but in
an indirect way silver dollars may be con-
verted into gold dollars, and because the
way is indirect their parity can be main.
tanned. A direct interchange over the
treasury's counter would destroy the par
ity at once, because the Government would
then be money-exchange broker. while
the exchange would be made for specula-
tive purposes, which would involve the
integrity of silver, because, as matter of
convenience, if for no other reason, holders
of silver would prefer to have gold.
As we have said, silver dollars are re-
ceivable for excise and customs duties be-
cause they are legal tender the same as
gold. The Government knows no differ
enee between the legal tender qualities of
the metals. The option is not with the
Government in the matter of receiving
and paying legal tender money. Hence,
Richard Roe pays his excise and customs
duties, all or in part, in silver dollars be-
cause silver dollars are bulky and less
convenient to handle than gold. Then he
presents the coupons of his bonds or other
evidence of the Nations indebtedness to
him and again he exercises his option
right and asks that he be paid in gold.
Thus he indirectly converts his silver into
gold and thus does the Government MAIN
tain the parity of the metals. The Gov
ernment is supposed to receive enough
gold for customs and excise duties from
those with whom gold payment is more
convenient. That is to say, as a rule i'm
porters find it more convenient to pay
their customs duties in gold, while those
who pay internal revenue taxes find it
more convenient to pay in silver. 1t must
be remembered that while silver dollars
are legal tender for duties, silver certifi-
Gates are not The Gov ernment will not
receive them for either customs or excise
duties. That is the way the Government
maintains the parity of gold and silver.
The Republican party proposes, however,
to invite the commercial nations To join
with the United States and confer upon
silver equal importance with gold so that
they will themselves maintain their par
ity without legislation, or by the exercise
of the right of option by either payor or
Davee.