Year: 1878

The discussion on the question Of remonstizing
silver, Mr.. President, has been prolonged able and
exhaustive. ! may not expect to add much to its
value, but promise not to add much to its length
shall endeavor to consider facts rather than theo-
ries to state conclusions rather than arguments:


First. believe gold and silver coin to be the
money of the Constitution indeed, the money OF
the American people anterior to the Constitution,
which that great organic law recognized quite in
dependent of its own existence. No power was con-


erred Congress to declare that either metal should
not be money. Congress has therefore, in my judg-
mentno power to demonetizesver any more than to
demonetzs gold; no power to demonetize either any
more than to demonetize both. In this statement
am but repeating the weishty dictum of the first
OF constitutional lawyers I am certainly Of epin-
ion." said Mr.. Webster, "that gold and silver, at
rates fixed by Congress- constitute the legal standard
Of value in this country and that neither Congress
nor any State has authority to establish any other
standard, or to displace this standard" Few per-
sons can be found, apprehend, who will maintain


that Congress possesses the power to demonetze both
gold and silver that Congress could be justified in
refusing to provide for the coinage of both and yet
in logic and legal construction it would be difficult
to show where and why the power Eof Congress over
silver is greater than gold-greatsr over either
than over the two FL therefore, silver has been
demonetized am in favor of remonetizng it. IT,
its coinage has been prohibited in favor Of order
ing it to be resumed. II it has been restricted am
in favor Of having it enlarged.


Second. What power, then, has Congress over
gold and silver? 1t has the exclusive power to coin
IT. the exclusive power to regulate its value; very
great, very wse very necessary powers for the dis
Greet exercise of which critical occasion has now
arisen. However men may differ about causes and
processes all will admit that within few years
great disturbance has taken place In the relative
values of gold and silver, and that silver Is worth
less or gold is worth more in the lmoney markets Of
the world in 1878 thann 1873, when the further COIN
age OF silver dollars was prohibited in this country
To remonetizs it now as though the facts and cir
cumstances of that day were surrounding us, is to
willfully and bndly deceive ourselves. If our de-
monetzation were the only for the decline In
the value of silver, then remonetization would be
Its proper and efectual cure. But other causes,
quite beyond our control, have been far more po-
tentally operative than the simple fact OF Congress
prohibiting its further coinage and legislators
are bound to take cognizance OF these causes. The
demonetzation Of silver in the great German En-
pire and the consequent partial or we'll nigh COM
plete suspension Of coinage in the governments OF
the Latin union, have been the leading dominant
causes for the rapid declin in the value of silver.
do not think the oversuppy of silver has had, in
comparison with these other causes an appreciable
influence in the decline of its value because its over
supply with respect to gold in these later years has
Vseesa . as was he ovcrsuppty
Of gold with respect TO silver many years afer
the mines of California and Australia opened;
and the oversuppy of gold from those rich sources
did not affect the relative positions and uses of the
two metals in any European country.


believe then il Germany were TO ram monetize sil-
yer and the kingdoms and states OF the Latin union
were to reopen their mints silver would at once
sumo its former relations with gold. The European
countries when driven to full remon etization, as
believe they Twill be, must of necessity adopt their
old ratio OF fifteen and half of silver to ons of
gold, and we shall then be compelled to alopt the
same ratio ,instead Of our former sixteen to one
For il fail to do this We shall as before lose ou
silver, which, like all things else, seeks the highest
market; and il fifteen and half pounds of silver
will buy much gold in Europe as sixteen will buy
America, the silver, of course will go to Europe.
But our line of policy In joint vsment with
other nations to remonetize is very simple and very
direct. The difficult problem is what we shall do
when we aim to re-establish silver without the CO.
operation OF European powers, and really as an adj
vance movement to coerce them there into the anne
policy Evidently the first dictate of prudence is to
coin such dollar, will not only do justice among
our citizens at home, but will prove protection-an
absolute barrieadeagainst the gold monome tallists
OF Europe, who, whenever the opportunity offers
will quickly draw from us the hundred and forty
millions Of gold coin still in midst. And if we coin
silver dollar offull legal tender, obviously below
the current value of thesgo dollar we are opening
wide doors and inviting Europe to take our gold
And with gold flowing out from us we are forced
to the single standard aud our relations with the
leading commercial countries of the world are at
once embarrassed and crippled.


Third. The question before Congress then
sharply defined 10 the pending House bill-is, wheth-
crit is now safe aud expedent tooe free coinage to
the silver dollar of 4l2 geans with the miuts of the
Latin union closed and Germany not permitting sill
yer to bs coiuei as money. At current rates of
silver the free coinage of dollar containing 4i2i
grains, worth in gold about ninety-two cents gives
an illegitimate profit to the owner of the bullion,
enabling him to take ninety-two cents worth of it
to the mint and get it stamped coin and force his
neighbor to take it for full dollar. This is an
due and unfair advantage which the Government
has no right to give to the owner of silver bullion,
and which defrauds the man who is forced to take
the dollar. And assuredly follows that if we give
free coinage to this dollar of inferior value and put it
in circulation, do at the expense Of better
coinage in gold; and unless we expect the uniform
and invariabe experience Of other nations to be in
some mysterious way suspended for our peculiar
benefit we inevitably lose gold coin. 1t will flow
out from with the certainty and resistess force OF
the tides. Gold has indeed remained with in con-
siderable amount during the circulation of the infe-
rior currency Of the legal tender; but that was be-
cause there two great uses reserved by law for
gold: the collection of customs and the payment of
interest on the public debt. But if the inferior silver
coin is also to be used for these two reserved pur-
poses, then gold has no tie to bind it to u.s. What
gain, therefore, would we make for the circulating
medium II on opening the gate for silver to flow in,
we open still larger gate for gold to flow oute


Fourth. Consider further what injustice would
be done to every holder Of legal tender national
bank note. That vast volume of paper money-over
7O0,O0oooo Of dolars-is now worth between ninety
eight and ninety-nine cents on the dollar in gold
coin. The holders of it, who are indeed our entire
popuation from the poorest to the wealthiest have
been promised from the hour of its issue that the
paper money would one day be as good as gold To
pay silver for the greenback is full compliance with
this promise and this obligio provided the silver
is made as it always has been hitherto, good as
gold. To make our silver coin even three per cent.
less valuable than gold nacts at once loss of more
than twenty millions of dollars the holders of our
paper money. To make silver dollar worth but





of wel-ngh sixty millions of dollars For whatever
the value OF the silver dollar is the whole paper issue
of the country will sink to its standard when its
coinage is authorized and its circulation becomes
general in the channels Of trade Soma one in conyer
sation with Commodore Vanderbilt during one of the
many freight competitions of The trunk lines said
way the Canadian road has not a sufficient carry
ing capacity to compete with your great lne "rhat
is true, replied the Commo lore, "but they can fix
arate and force us down to it," Were Congress to
pass law to-day declaring that every legal tender
note and every national bank note shall hereafter
pass for only nnety-slx nnety-ssven cents the
dollar thereis not constituency ia the United
States that would re-elect man that would support
it, and in many districts the Representative would
be lucky u he escaped withimerey minority vote.


AMI yet it is almost mathematically demonstrable
that the same effect will inevitably follow from the
coinage of an inferior silyec dollar. Assurances
from empires aud scientists n finance that remone-
tizaton OF the former dollar will at once and per-
manently advance its value to par with gold must 20