Amador ledger., 1900-08-31
THE PLACE OF SILVER IN THE
NEW CURRENCY SYSTEM.

y
will have to be both prudent and loyal
if it be not found that more has been
done for silver than ought to have been
lone. II there has been error it has
been on the side of friendliness to an
increased use of silver.
There is less than one silver dollar in
circulation in this country for each in
habitant. The country simply does not
want to use the dollar of the fathers
1t is too big and heavy.
Therefore the silver has to circulate
by proxy-in the form of silver certifi-
rates.
There has been a demand for more
fractional silver than the law provided
for coming. The statute fixed the limit
at 90 million dollars, but in obedience
TO an absolute necessity the government
has issued SO millions in fractional
silver. The new act authorizes the
coinage of enough to bring it up to 100
million dollars, thus finding place for
20 millions additional silver currency.
And that is not the only addition in
the way of silver to the currency in the
United States which the new law makes.
Under the act of 1890 the govern
ment bought 168,674, ,6S2 50 ounces of
silver giving in payment for it its notes
to the amount of $155, 1881, ,00225. Had
this silver all been coined it would have
made 218 million silver dollars. This
silver is to be coined under the new law
and as coined will be issued in the form
OF silver certificates and as the silver
certificates are paid out the notes which
the government gave for the silver will
be taken up and destroyed.
Besides the increase i'll fractional sill
yer this will add $45, 100000 in silver to
the volume of currency after all the
notes of 1890 are taken up and destroy
ed, and will bring the whole amount of
silver in circulation up to SIS million
dollars, mostly however in proxy GER
tificates.
That is what the country has done for
silver. Now what will silver do for
the country?
The silver in these dollars is worth
one-third less than when the silver was
bought. The silver in each dollar is
now worth about AZ cents. If the gov
ernment store of silver were thrown
upon the market it would go lower.
The new law says: "All forms of
H. 1,
States shall be maintained at a parity
of value with gold) and it shall be the
duty of the secretary of the treasury
to maintain such parity
But the law does not give the secre-
tary any power to maintain the parity
Of silver with gold by cx :, qnging gold
for silver out of the red, - ION fund.
He may exchange any gold that happens
to be in the general fund for silver if
he wishes to, but he can not take dol
lar for that purpose out of the redemp-
ton fund or sell bonds to get gold for
that purpose or in any other way di-
rectly redeem silver with gold.
And yet to the extent of 53 cents in
each dollar silver is in effect promise
to pay gold and if the promise is not
kept down will go the silver dollar to
less than half its face value.
With the view of making silver cir
culate at its face value several devices
are resorted to under this new currency
law.
All the greenbacks of denominations
less than $40 are to be withdrawn and
reissued In higher denominations.
Only one-third of the issue of notes
of any national bank is to be in de-
nominations as low as $5, and nothing
lower than that
The silver dollar, or its certificate, is
full legal tender, in the absence of
special contract
The government will receive it for
all dues and will not force it out if not
wanted if there be other forms of money
available for paying its debts
All the silver certificates except 10
per cent are to be in denominations of
less than $40.
1t is hoped that these provisions will
make place for silver in the retail
transactions of the country.
Experience and observation show that
in the United States the people will use
about So per capita in their retail trans
actions-not more. This would provide
place for about 624 millions of dollars
in that service, but inasmuch as many
retail transactions are facilitated by the
use of money in denominations of $40
and $50, and as there is also much gold
and other forms of money in actual cir
culation, it will be seen that not all the
requirements of the retail trade can be
retained for the use of silver certif-
Gates.
Therefore it is perfectly obvious that
the new currency law has reached the
extreme limit of prudence i'll authoriz-
ing an extension of the use of silver.
The Republican party has done all it
can do for silver without endangering
the whole financial fabric, destroying
public confidence in the stability of the
currency and so bringing OH another
panic.
On the other hand, Mr.. Bryan has
pledged the political organization of
which he is the supreme ruler to the
opening of the mints of the United
States to the free and unlimited coinage
Of the worlds store of silver at ratio
Of 16 to 1. He forced the advocacy of
that proposition upon his convention in
opposition to the counsels of the leaders
Of his party and against the best judg-
mept of three-fourths of the delegates
and, if elected president, he would use
all the power of patronage and admin
istration to force that policy upon the