The herald., 1896-08-08
The Stability OF Silver

Editor Herald: l have read a great
deal in the papers about how business
| would be done on silver basis, and pos
| sibly the "reminiscences of a money brok-
| er in the years from 1876 to 1878 in this
city may be of some interest to your
| readers.
The years of which speak were very
hard times in California, the Bank of
California having had considerable
trouble and having just gotten upon its
feet again. At that time the so and 25-
cent silver coins were not redeemed by
the government, as they are al present,
and they We're at a considerable discount,
which varied all the way from per cent
to as high as 10 per cent as remember
About this time met tenderfoot who
was out here for his health. and who had
| about $500 in greenbacks as a capital.
We formed partnership, and with this
capital opened a brokerage business,
very close to the office of The Herald at
that date. We bought and sold silver
ard currency, dealing almost altogether
in the latter, as there was very little
currency in this country at that time.
We Kept gold account, silver ac-
count, and occasionally a currency ac-
count at the Los Angeles county bank,
which was opposite, and did thriving
business. y man would come in ano.
throw down $40 in gold, and we would
would come in and put down 81 in silver
and we would give him 500 in gold for it.
We turned over our little capital of $500
sometimes every day and made a hand
some living. The banks at first We're. to
some extent. our competitors. but they
gradually left the business altogether in
our hands. on account of the trouble that
it gave them haggling over the differ
ence of l or per cent on an exchange of
500. When we would get short of silver
we would run across the street and give
a check for $1,000 in gold and borrow
$1,000 in silver on that security. so that.
If the matter had continued for an un-
limited time. we would have been cap
italists. Unfortunately for us. congress
passed law looking to the resumption
of specie payments, and the discount on
greenbacks surely. very steadily and
rapidly declined. A law was also passed
which permitted the redemption of the
subsidiary silver coins in gold. and this
at one fell swoop raised the silver coins
to par. My partner and myself had in
anticipation of this. sold out our good
will for very small sum. and had gone
into another part of our office. where We
had opened a real estate business. The
men who were our successors in the
brokerage business still occupied the
same office with us. When their occu-
patton finally ceased. as above outlined.
tHtN ItUuSSttu us 10 dllON lNO
ly ponderous boxes of silver to remain
in our safe over night, and. as they did
not come down in the morning and re-
mained away for a week or two. | be-
came apprehensive of having so much
wealth belonging to others in my pos
session. Finding that the parties were
out of town, | sent for them, and. when
one of them leisurely walked into the
Office. | called his attention to the fact
that he was using our safe, to our great
detriment and danger. His reply was TO
go around and lift one of the boxes,
which should have weighed about sixty
four pounds. The ease with which he
did this undeceived me, and. when he
proceeded to take out one of the rolls
and unwarp it, he disclosed the fact that
his entire capital for the last few weeks
had been two boxes filled with pieces of
broomstick. cut into convenient lengths
and unWrap it. he disclosed the fact that
as the usual $50 roll of half-dolars.
Several of the old-timers will remem-
Der my name. but do not care to iden-
tfy myself further than by the location
SO we'll known in 1877. Yours respect
fully,
Los Angeles, Cal. August :, 1896.