The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-24
THE SILVER ISSUE.
What Keeps the silver Dollar on a
Parity with the Gold DolIars

rarity With the Gold DOliars
Editor Morning News Your editorial Of
the 18th instant was so simple clear and
sound that 1t is not surprising it should ex-
cite comment. have heard it very hearth
ly endorsed in private. In addition TO your
answer to Messrs. Farley and Burt / want
TO ask the privilege of a comment on Dr.
Burt's effort to prove that the legislation
OF the United States gives value to the
silver dollar, and not our administrative
policy.
The explanation is a little tedious and
documentary, but the subject Is so import
ant a s to deserve this kind of treatment
The question raised by Dr.. Burt is in
VolVed in the question what is ultimate
money? The true definition of that money
Is that which is accepted by the nations in
final settlement 81 the balance OF trade
Gold Is that money, or commodity; If you
are technical. Now as long as our system
of finances enable the foreign dealer to
exchange his money for gold in which
these debts may be settled without loss
can be now done. The greenbacks and 1890
treasury notes can procure gold for for
eign shipment In our local trade these
notes and silver with its representa- tives
are exchangeable. SO while silver
may not be literally exchangeable for gold
the policy OF the nation maintains its
| equality with It.
Suppose, however, the policy should be
| reversed, our currency would resolve IL
self at once into its component parts, and
each would be forced to stand on its own
merits. Let US ILLUSTRATES:
A New York merchant imports goods
| to the amount of $1,000 Let us leave
out all profits and expenses in order to
| see the operation of this principle more
clearly. He retails these goods through
| out this country and receives for them
| silver, silver certificates, national bank
| notes, greenbacks, 1890 treasury notes 1t
becomes necessary for him TO ship money
in payment for the goods to Paris He
| takes the money he has received, eX-
| changes II at the banks with his friends
/ until he has $4,000 in gTeenbacks and
| treasury notes. With these he goes to
| the United States sub-treasury and asks
| for 100000 in gold. Our present policy
| gives II to him, and he sends II over the
| ocean and in return receives a recent
| in full. Suppose, however, the brilliant
scheme formulated at Chicago and in
| dorsed by DR.. Burt should prevail He
| takes his notes to the sub-tFeasury. The
| assistant treasurer says: No l will nor
| give you gold l maintain the govern
| ments option to say in what l will pay
| you. Will give you half in gold and
| half in silver" The importer sends his
| coin in Paris. The bill comes home; Or.
| To goods, 100000, CIR. By so much gold.
L $50 coo, so much silver, $26, 500; balance
| due 1928 500. Please remit at your earliest
| convenience" The importing mercha Mt
therefore has lost $2350O worth of goods
through the financial policy of the govern
| ment.
Next time, however he will send his
| goods out to his customers marked in
! prices that will enable him to secure
| enough silver TO pay his foreign bills. He
| will want 1874 600 in silver or its eouiva-
| lent which win then be all forms Of our
| paper money to pay his imported goods.
1t is thus seen how the silver dollar cir
culates on a parity with gold now. and
how when the policy is changed the par
/ ity can no longer be maintained That
! these principles are true is recognized in
| the celebrated bullion report" made ia
the parliament of England in 1910 1t saws
"A general rise of all prices, a rise in the
market price of gold, and a fall of the
| foreign exchanges will be the effect of an
excessive quantity of circulating medium