Year: 1876




Congress in acting upon the Silver ques-
ton should keep certain facts clearly
fixed in mind, namely: (D That prior to
1873 all debts contracted to be paid in
coin were legally and equitably payable
either in gold or silver; (2) that it is just rs
immoral to change the obligation of contracts
in the interest of the creditor as 10 change the
obligation of contracts in the interest of the
debtor; (3) that the unexpected fall In the
price of silver in no way affects obligations
legally and equitably payable. according to the
terms of the contract, either i'll gold or IN
silver coin; (4D that the question whether the
single or the double standard should he adopted,
with respect TO future transactions, should tie
pend solely upon the general public interest,
and in no degree upon the private interest OF
individuals as owners OF gold mines or oil silver
mines, as debtors or as creditors.


1t is not necessary to dwell upon the state
ment that gold and silver were equally legal
tender prior to 1873. The fact is not denied
nor is il of the least consequence that there
had been for some years 10 silver dollars IN
circulation Under the law it was wholly
within the power of the Government to coin
silver to any amount and at any time; under
the law debts payable in "gold OF silver coin"
could mt any time have been discharged by
the payment of either; and every creditor un-
der such contract made it with perfect
understanding that either silver OF gold might
be paid. In fact, prior to 1873, the presump-
ton was that the United States would coin
silver largely, whenever it should become the
less valuable metal, because an important part
of its own Indebtedness was payable III gold
or silver coin.


1t is a cheat to impair the legal obligations
of a contract for the benefit of either party.
Morally speaking, Congress has no right to
help debtor or creditor. There stands the con-
tract, be it what it may. Let it be enforced
according to it, terms. IL a man agrees to
deliver thirty tons of iron on "a certain day,
and the price Of iron meanwhile falls, that
does not impair his right to full discharge
upon delivery of the iron. If he agrees to de-
liver a certain quantity of Winter or Spring
wheat, and, the Winter wheat becoming pecu-
liarly scarce or the Spring wheat peculiarly
abundant the relative value unexpectedly
changes, that does not impair his right TO full
discharge upon delivery Of either. Congress
has no more right to change the terms of such
a contract than either individual concerned.
If it says gold shall be paid, when gold or
silver is specified, it wrongs the debtor who
has in law and equity the right to pay in
either, and as between individuals such an in
reference with contract would be void


Suppose that, instead Of silver, gold had just
now met such a remarkable decline in price
as has more than once occurred, would not
honorable aud sensible men agree that il
would be fraud to require payment in silver
alOnef For years after the discoveries in Cal
ifornia and Australia, gold was abundant and
silver scarce. Had Government then required
debtors to pay in silver, it would have
wrOngcd them had it then insisted upon pay
ing public obligations in silver, it would have
robbed the people Of the United States. What
difference does it make, legally or morally
whether one metal or the other has declined
in value


Senator Jones has weakened the position OF
advocates of the double standard by resorting
to some positions that are very untenable, not
to say absurd. He says, for example, that
! demOnetization of silver would practically dou-
bic all debts, because the amount of silver and
of gold in use is approximately equal. We
must presume that Mr.. Jones has read enough
of political economy to know that currency
and various forms of credits used as currency
affect prices quite as much as coin itself, and
that an insignificant proportion of modern
transactions in civilized countries are settled
by payments Of money. In London the
use OF money is as one TO twenty com.
, pared to the use Of commercial credits. and
nearly the same proportion prevails In
New York. Ii the demOnetization of silver should