Year: 1877

whatever Nor does there seem to me to bo
any need 10 make ono nn,'na Dank notes con-
them They might continue to be convert
bic INTO Tressnry legal tender tend Notes which would
other few spots might be selected for the deposit OF
the reserve As gold - really only needed Tor inter
traed, and not dispersed over great many local and
minor banks


THE FUTURE AMERICAN DOLLAR
Finally, regards tho future American dollar !
nearly but not entirely, with Professor Francis
Bowen. Excepting IN few MINOR points believe his
report be and wise from beginning end, and
trust that his recommendations will Tor the part
be adopted. He proposes that the dollar shall contain
- grams OF gold, that the i've dollar piece may
the exact equivalent OF the pound sterling The choice
nve fraoc piece ana those who do not yet quite de-
spair OF international currency would prefer the Litter
In this the dollar would % 40 grains OF
pure gold and the American nvo dollar ece contain
ing about gram less gold than sovereign, would
be preserved IN this way from being melted wherever
II into competition with tho sovereign. IL
is law Of currency that the lighter coin lives
and the heavier one goes TO the melting pot. In
tins way the American five dollar piece would proba
bly, become the predominant gold coin until such
time as the English people would see the wisdom OF
reducing Their sovereign by two pence and thus es
tabisbing simple ratio between the Latin, American
aud English currencics


But TINS Is u matter only OF detail. My principal
purpose IS accomplished II have adequately ex-
pressed the strength OF my conviction that trying
TO establish bi-meallic money the AmerIcln nation
would be setting themselves assnst irresistible natu.
raj tendencies to insure defeat For tue OF
richer whO already would
be loading themselves with heavy metal winch, It
Is TO be abundant mad Detter be left 10 other


those eastern nations who are Too poor and
to employ gold 1t is the general rule In commerce
take OF ''number one, }" bnt IN bi-notac money
the rule is reversed, aud 'number one" Is asked 10
carry silver COIN in order to benefit ''number two"
and number three"


PAPER OF b. " NouRsE.


Professor B. +. Noursc then read very extended
and exhaustive paper upon the bi-meallic question
He said the modern range OF the question which of
the roative value and utility OF silver and gold
standard coin pressed with orce upon the
sideraon oil all by events, begin
ming In 1871, and in this lorm:-


Is 1t better that the coin standard or unit OF money
value shall be Vi gold, or oi silver, or vi the two
metais associated A. liked relation OF value, and
wnicn Is the better Tor all commercial nations?
He then proceeded to give history OF the metallic
question IN Europe and America during tue present
century, showing tho action OF the nations
the effect upon The prosperity the respective States
and upon International commerce. following TINS by
recng the arguments for ana against the bi
metallic system.


COUNTRY


Our opening question, he SAID, oil the better
Standard lor all Nations Now, wnat Is expsdient Tor
our own country


By the existing law 1t is the duty Of the Secretary
OF the Treasury to make provision OF money where
with redeem all United States Treasury noes tnat
shall be presented Tor redemption and after Janu
ary l, 1879. 10 certain extent and by operation
upon the obligations OF contracts. this law makes
pledge OF the public aith that II shall be executed Its
execution viii restore specie payments AS the CON-
age laws now stand the money redemption must bc
gold. An effort VIII I've made at the Approaching
session Of Congress to secure the enactment of
law TO re-esta0lish the bl-metaic coinage
as 1t nomlnaly was prior to the coinage act o 1878


Should this be done all debtors, Including the gov
crnment, IN the absence OF SPECIFIC promise in the
contract, Will have choice o the legal tender dollars
gold, silver or greenback with which they will pay
their debts Paper dollars Will then worth the
same as the coiu dollars with which they Will be
deemaoie which then Will oe OF SILVER. Tnon the
levu vaiu nj dand uoIa han in
o. TO IL, undervaluation OF gold by to per
compared with present bullion values IN Europe and
supposing bullion values 10 remain now, q premium
OF over per cent vii DC offered Tor the export Of god,
and our whole currency VIII consist OF SILVER and notes
redeemable IN SILVER. There 10 not time now obtain
International adoption OF b metallic money before
Resumption must take effect Tho alternative is
redemption win gold, as the law stands, with
silver which the restoration OF the old bi-meallc law
would give u.s.


EFFECT OF GOLD STANDARD.


Let US suppose that the decision shall be to adhere
to the gold standard until the bi-meLailc standarl
snail be adopted oy International agreement, what Will
be the consequences? All oil our currency will be
brought 10 lUld value anu power--goOd abroad as at
home. Private credit will be strengthened Conn-
dence SO long lost impaired, the element essential
to activity and prosperity, will quickly return upon
the resumption OF specie pay ments In gold. Alter
lew mouths IN winch tue per ma nence the rcsump
lion will be tested. the average OF prices lately de-
pressed by the slagnation which Is the effect OF
OF confidence, will probably advance under revival
Of business the proper effect Of resumption; except
that the cost OF living may be cheapened as 1t ought
be- In proportion ~ the prices of labor aud manuac
lures Under gold resumption no question can arse
as to the kind OF dollar To be pad on contracts
OF debt pubic o. private. Alter lold resumption
shall be in position TO adopt Vi mctaliisn IN
concurrence with other nations, without difficulty aud
under most favorable conditlons II then II shall
desirable No ciizen OF the United States, Reasonably
proud OF his country and ol her and
resources, will admit her ipabilit, 10 have main
tain the gold standard. II II snail be Tor our best
teress, even Of those who advocate the Adoption OF
the bi metallic system Independently OF other nations
from conviction that It Is the wisest and best policy


ATTITUDE toF CONTINENTAL EUROPE


Tho present attitude OF the btnetallc nations of
Continental Europe on the silver question sad to
one Of expectancy" They defer the decision OF their
complete demonetza OF silver Tor iurtner
events the chief OF these is looked for from this
country They nave been led TO believe that tho
Bland bill, one like II In eject would become
law OF our land. They count upon American de-
mand for their surplus silver whether load It upon
and effect their escape from Its burden, or
under favor ol Its aid IN restoring value 10 SILVER
resume their own former polcy. is not disclosed.


1t is suspicious when We sec European advocates OF
the gold standard urging upon The United States the
adoption OF the silver standard and suggests the
10 make our country the market Tor what they would
discard.


Let US hope that Congress will not condemn us alone
OF all the Western hatons to the use OF another depre
ciaed currency, though II be 0l silver
oil banlshmen against gold so long as that alone
Is the International money OF the world.


Now what Will be the consequence OF the alternative
the adoption OF the b-metslic coinage practically
silver standard for the United States?


In the absence OF visible effort toward an inter-
national bI-metallc standard assume
tnal European nations having the gold standard
will Keep it that tho drllt OF others will he to-
ward the same as II has been since 1873 the
present surplus OF silver will increase by further
anu increasing production. Useful as
this surplus silver would be, and as its
sum is | the whole standard money oi Europe If
still fully employed as money It becomes idle mer
chandise OF uncertain value Tor which the best
markets must DC sought, SORT OF dead weig Ue
carried when discarded as money Our uolicv ought
to be adapted to the probable condition in Europe; IL
be to avoid loss aud trouble. Gold and saver
dollars as coequsl legal tender must have leg rea.
ton oil value tue one to tue other II proposed tnat
the snail restore the old dollar OF 4l25 grams
col standard silver ana the OLD rato 10 to Al that
ratio or any other which shall undervalue the gold
dollar even one per cent compared the rates OF
value IN the bullion markets Of Europe, u premium
will be offered Tor the export vi gold to Europe
and the same premium Tor proht) Tor the
OF silver Az the current gold price OF silver in
London, say 644d per ounce, the ratio 10 to here
would ohcr ABOUT seven per cent profit the export
OF gold dollars


ADVOCATES OF THE SILVER STANDARD.


There two classes OF advocates OF tho double or
silver standard, both demanding Unlimited tender of