Year: 1878

10 raise II TO practical equality With gold; but that
condition will only last until the amount needfdl for
customs shall fill the channels Of Its useJ and the
overflow going into general circulation win rapidly
settle to Its normal and actual value and then the
discount will come on the volume Of the paper cur
reDcy which will sink par passu with the silver dol
lar In which 1t Is made redeemable. That remonsti-
ration will have considerable effect In advancing
the value Of the dollar Is beyond doubt, but not
enough to overcome the difference now exstinr-a
difference resulting from causes quite independent OF
our control on this continent.


FIFTH. The responsibility OF re-establishng silver
In its ancient and honorable place as money In
Europe and America devolves really on the Congress
Of the United States. If we act here with prudence
wisdom and firmness, we will not only successfully
remonetize silver and bring it into general use a.
money in our own country, but the influence Of our
example will be potential among all European na-
tions, with the possible exception Of England. In
deed our annual Indictment to Europe is so great
that il we have the right to pay 1t in silver We nec
essary coerce those nations by the strongest OF all
forces, seinteres to aid US in uphol lding the value
ofsver as money. But il we attempt the remone-
tizaton on basis which is obviously and notorious
ly below the fair standard of value as it now exists
we incur all the evil consequences Of failure at hom
and the positive certainty Of successful opposition
abroad. We are and will be the greatest producers
OF silver in the world and have larger stake in
Its complete monetization than any other country.
The difference to the United States between tho
general acceptance sof silver money in the COM
mercial world and its destruction as money, will
possibly equal within the next halt century the en-
tire bonded debt of the nation But to gain this ad
vantage we must make 1t actual money-the ac-
cepted equal OF gold: in the markets Of the world.
RECOMMENDATION here, followed by general remoneti-
1afia In, lin
the most stable basis for its currency that we have
ever enjoyed, and will efectualy aid in solving all
the problems by which financial situation is sur
rounded.


Sirth. On the much vexed and long-mooted
question Of bimetallic monometalc standard NV
own views sufficiently indicated in the remarks
have made. believe the struggle now going on in
this country and in other countries for single gold
Standard would, if successful produce wide spread
disaster in the end throughout the commercial world
The destruction OF silver as money and establishing
gold as the sole unit Of value must have a ruinous
effect on all forms Of property except those invest
ments which yield fixed return in money. These
would be enormously enhanced in value and vould
gain disproportiOnate aad unfair advantage owe
every other species of property. H. as the most re
liable statistics affirm there seven thousand mill
lions OF coined money in the world, not very un-
equally divided between gold and silver, It Is i'm
possible to strike silver out of existence as money
without results which will prove distressing to mil
lions and utterly disastrous to tens Of thousands
Alexander Hamilton In his abba aud invaluable re-
port in 1871 on the establishment OF mint declared
that "to annul the OF either gold or silver as
money Is to aordge the quantity Of circulating me-
dium, and Is liable to all the objections which arise
from comparison of the benefits of full circulation
with the evils Of scanty circulation" take no
risk in saying that the benefits OF full circulation
and the evils of scanty circulation are both i'm
measurably greater to-day than they were when Mr.
Hamilton uttered these welghty words always pro-
vided that the circulation is Of actual money and
not of deprecated promises to pay.


In the report from which have already quoted
Mr.. Hamilton argues at length in favor Of q double
standard, and all the subsequent experience OF WELL
nigh ninety years has brought out no clearer state
ment of the whole case nor developed a more COM
plee comprehension Of this subtle and difficult sub
ject. son the WHOLE" says Mr.. Hamilton, 'it seems
most advisable not to attach the unit exclusively to
either OF the metals because this cannot be done ef-
fsctuay without destroying the office and character
OF one OF them as money and reducing 1t to the stua
tion Of mere merchandise" And then Mr.. Hamil-
ton wisely concludes that this reduction Of either
the metals to mere merchandise Il again quote his
exact words) 'wouldiprobably be greater evil than
occasional variations in the unit from the fluctuations
in the relative value Of the metals especially If care
be taken to regulate the proportion between them
with an eye to their average commercial value"
do not think that tlis country, holding so vast q
proportion OF the worlds supply Of silver in its noun
tains and its mines, afford to reduce the metal to
the "situation Of mere merchandise" II silver
ceases to be used as money in Europe and America
the rnctFz utov. xrux NJ. s,.,sst
and dead. Mining enterprises OF the gigantic scale
existing in this country cannot be carried on to pro-
vide backs for looking-glasses and to manufacture
cream pitchers and sugar-bowls. vast source OF
wealth to this ,entre country is destroyed the mo-
ment silver is permanently disused as money It's
for as to check that tendency and bring the cont-
nent of Europe back to full recognition OF the
metal as medium OF exchange


Seventh. The question OF beginning anew the
coinage of silver dollars has aroused much discus
sion as to its effect on the public credits and the SEN
ator from Ohio tMr. Matthews) placed this phase OF
the subject in the very forefront of tho debate-n
sisting, prematurely and illogicaly, think, on a
sort ofjudlcial construction in advance by csncur-
rent resolution, of a certain law in case that law
should happen to be passed by Congress. MY own
view Of this question can be stated very briefly I
believe the public creditor afford to be paid in
anyslver dollar that the United States can aerd to
coin and circulate We have forty thousand millions
ofproperty in this country, and wise self-interest
will not permit us to overturn its relations by seek
ing for inferior dollar wherewith to settle the dues
and dem1nds Of any creditor. The question might
be different from merely selfish standpoint IT, on
paying the dollar to the public creditor it would dis
appear after performing that function. But tbs
trouble Is that the interior dollar you pay the public
creditor remains in circulation, to the exclusion OF
the better dollar. That which you pay at home will
Stav there. hat pvhfc vou aaud
back The interest of the public creditor is indisso-
luby bound up with the interest of the whole people,
Whatever affects him affects US all; aud the evil
that we might indict upon him by paying inferior
dollar would recoil upon with a vengeance as
manifold as :the aggregate wealth of the Republic
traascends the comparatively small limits OF our
bonded debt. An1 remember that our aggregate
wealth is always increasing, aud our bonded debt
steadily wing less! II paid in good silver dollar
the bondholder has nothing to complain Of II paid In
an inferior silver dollar, he has the same grievance
that VIII be uttered still more pIaintively by the
holier OF tho legaltender note and OF the natl nal
bank bill, by the day-laborer and by the countless
host OF the door, whom we have with US always and
on whom the most distressing effect ofinferior money
will be ultimately:precipitated.


But must say, Mr.. President that the specific de-
mand for the payment Of our bonds in gold coin and





quarters. European criticism Is leveled against us
and hard names hurled at across the ocean for
simply daring to state that the letter Of our law de-
clares the bonds to be payable in standard coin OF
July IA, 1870; expressly and explicitly declared So
and declared in the interest of the public creditor
and the declaration inserted in the very body OF the
eight hundred million Of bonds that have been issued
since that date, Payment at that time would have
been as acceptable and undisputed in silver as in
gold dollars, fos both were equally valuable In the
European as well as in the American market.
Seveneighhs Of all our out Of the coun-
try, are held in Germany and in Holland, and Ger
many has demonetized silver, and Holland ha, been
forced thereby to suspend its coinage since the sub
jects OF both powers purchased securities. The
German Emo the very year after We madeour spe-
cfc declaration for paying bonds in con passed


law destroying so far lay in their power the value
Of silver as money do not say that it was special
ly aimed at this country but it passed regard
less Of its effects upon US, and followed, Accord
ing to public and undenied statement, by large in
yestment on the part OF the German Government In
our bonds, with view, it understood, of holding
them as a coin reserve for drawing gold from us 10