Year: 1877




the public credit would come, not from the
greenback infationists, but from the advoca-
tes of unlimited reconciliation of silver.
The fact begins to be appreciated. Miny
men thing that silver reconciliation il safe,
because silver coin is hard money, who have
stoutly opposed every effort to initiate the
paper currency, Yet the paper dollar is to
day worth over 81 cents. If silver becomes a
legal tender for the payment Of all debts, pub
lie and private, the paper promise can only
bear the same relation to the silver dollar
which it now bears to the gold dollar. The
promise to pay gold dollars worth 100 cents
now sells for little more than 81 cents. The
promise to pay silver dollars, now worth less
than 90 cents, would probably sell for d little
less than 80 cents. The legal-tender paper
must still continue the currency in common
use its value will determine the value of all
debts for which silver is made legal tender.
But the worth of the promise will inevitably
change with the thing promised.


At this very point appears the error which,
more than any other, entraps reasonably men:
1t is said that full reconciliation OF silver will
make sixteen ounces of that metal fully equal
in value to one ounce of gold. If not, the
Bland bill is palpable mistake. Morevere,a as
has been urged by Mr.. Walker, Mr.. Horton
and NJ Cernuschi, all eminent advocates OF
the double standard, the adoption Of the ratio
by the United States would go far to insure
the abandonment by France and other nations
of the Latin Union of the ratio of Is! to L.
All competent authorities agree that the dif-
ference of nearly three per cent in valuation
would prove fatal to the attempt to maintsin
the double standard. Yet many members OF
Congress make haste to vote for the remone-
tization of silver at that ratio, either because
they know nothing or care nothing for the
consequences or because they believe that the
mere act of remonetization by this country
will make silver worth, all over the world
not only all that their law cOntemplates, but
even more.


On such presumption as this, men are
asked to vote for bill which would affect
the credit of the United States as to every
bond outstanding, and as to every dollar OF
interest payable, What right have we to
stake the honor of the Nation upon any mans
guess as to the value of silver in certain
events? On that guess, however, men are
asked to provide that all customs duties may
hereafter be paid in silver, thus leaving the
Government without any sourceWhateyer from
which it can draw a supply of gold Men
who oppose these views have never asked the
Government TO take SO stupendous risk On
the strength of that belief, it is propose to
make all municipal and corporate debts, all
deposits in savings or other banks, all losses
by insurance companies, and all other forms
of investments, in which the contract does not
specify ssgold" instead of ''coin," payable in
silver now worth less than SO cents-or, since
it is not proposed to retire any OF the legal
tenders, in promises to pay at some indefinite
future time dollars worth less than SO cents.


1t is the theory that German sales alone
have depressed the price of silver, and the
American purchases will more than restore
that price. How many have duly consider
tie fact that the United States cannot posi-
bly coin more than about 500, 900, 900 or $780,
600, 900 of silver in a year? This country
propuces much more each year. All our
mints cannot use up the American product,
and the surplus of Germany will still continue
to press upon the market. For two years we
have been taking from the market over
SIS, ,OOO, 600 each year, for circulation as sub
s;diary coinage No one has claimed that the
price has been thereby affected materially.
What reason is there for supposing that pur-
chase of S5,OO0,OO more each year would
revolutionize thP worlds markets. Germany
would still offer silver for sale by the hundred
millions. Our mines would probably be en-
couraged to greater production. 1t would be
strange if, under the new stimulus, they
should not increase their yield as much as
Is, OO0, 900 yearly. But if so. the mints of
this country, worked to their utmost capacity.
would draw but little more from the markets
of the world than has been drawn for two
wears. in the issue of subsidiary coins. Is it
not rash and wild guess, that this step alone
will make silver worth par gold? But upon
this guess nen are willing to stake the pros
perity and the honor of the country.