Year: 1877

The Stanley Matthews resolution declaring


the right OF the Government to pay its bonds


in silver has brought out some good things


the speeches made in opposition to 1t. Mr..


Dawes put in courteous language the true


meaning of the resolution when he described
1t as search for way to discharge the public


lie debt easier than had been contemplated, land
Mr.. Bayard in sharper words exposed the dis
honesty of the proposition when he asked if
the power TO coin and regulate means the
power to coin and falsify? If Congress has
right to make false declaration and stamp it
upon metal that the lie might be better pre-
served? If the Government can use its law
making power to produce an advantage in its
own favor? And answered by saying that no
Government on earth can do these things
without dishonor.


When wedemonetized silver we surrendered
our option, and are now bound in honor and
good faith to pay cur bonds in gold. The pur-
chasers of those bonds and we who sold them
really understood from the very first that they
were to be paid in gold. In gold all our inter
national balances are settled, in gold all great
payments are made. No man would have
thought for moment five or ten years ago
that debt of six hundred million dollars
would be paid in silver. The idea was too
preposterous to be entertained. And in specie
times, in the days Of the dollar of the fathers,
anyone who was required to take silver in
discharge of debt even of twenty dollars
would have felt aggrieved. 1t was understood
between the parties to the contract at the
time the bonds were issued that they were to
be redeemed in gold; and the debtor cannot
honorably disregard that understanding.


From the lower standpoint of policy and
economy the reconciliation of silver would
be eminently unwise. Its effect would be to
depreciate our paper currency until it fell to
the value of silver, ninety cents on dollar
An equal rise in prices would speedily follow
The burden of the consequent arrangement
of values would fall upon the laboring men,
the class least able to bear it. The profit
would be made by the money changers All
the silver that is now held in Europe waiting
for market, would be poured in upon us,
and the great yields of our mines would be
every day adding to our redundant currency,
currency which would soon become from
the nature of the case still further depre-
ciated, for we could not rid ourselves of the
surplus. When we have too much gold we
can send it abroad and exchange it for art-
ces of value, and so lose no wealth. B1t the
purchasing power of silver is limited to
small part of Europe. hdeed, there are
many indications that it will soon cease to
pass current in any part. The Latin none
tary union shortly expires by limitation, and
grave doubts are entertained of its renewal
The probabilities are that the nations en-
braced in it will demonetize silver, In that
case an enormous amount of silver will be
thrown upon our market, and further de-
probation will follow. Our currency will be
as Valueess for all use beyond our limits as
the wampum of the Indians; and as the
first settlers took advantage of the savages
and paid for peltries in clam shells at their
nominal value as currency, so Europe will buy
our products and pay US in silver at the
fictitious value we have placed upon it, Sill
yer has great intrinsic value it is true, but
we propose to grossly over-rate it, to take it
not by weight but by tale. AS we cannot
compel those who trade with us to accept ii
at its generalization, while we bind ourselves
to do so, the loss must in every case fall upon
us. These facts must appeal to all men who
believe in an honest currency. They will
not OF course affect the strongest advocates of
the scheme for silver reconciliation, for
these advocates favor the new currency be
cause it is not honest, because of the facilities
it gives for cheating, But as most men are
honest there is strong reason for hope that
the silver swindle will fail if only its dishon-
esty can be made apparent to the majority.