Year: 1876

Now that both houses of Congress have
adopted the report of the conference commit.
tee on the silver bill it is to be fervently
hoped that the subject will be dropped. The
bill relieves the scarcity of small change, does
not deal with the silver dollar question, and
makes no change respecting the legal tender
qualities of the subsidiary coin. 1t authoriz-
es the issue of such token coin as may at any
time be in the Treasury in the same manner
as other currency is issued, instead of requlr-
ing the Secretary to wait until fractional cur
rency is presented for redemption. 1t also
authorizes the use of $20,000,000 of any
money in the Treasury for the purchase of
silver bullion to be fashioned into coin. The
total amount of subsidiary coin to be issued,
including the $10,0O0,000 before authorized,
is limited to $50,000,00O. Here is good
place to stop and let the silver question vigor-
ously alone, at least for the present. The
bill might have been improved by providing for
the destruction of all greenbacks taken into
the Treasury in exchange for silver, but so
wise step as that in the direction of con-
traction is not to be expected from this Con-
gress. We should be thankful for the pas
sage of a bill which has no power for harm,
and be content if Congressman will now let
the matter drop.


The discussion on the bill is of interest as
showing the peculiar position of the infation-
lists. As long as silver preserved lis relative
value to gold they bitterly opposed coinage.
But as soon as the silver dollar fell below the
value even of the paper dollar they saw their
opportunity to cheat the creditors of the goY-
ernment and pay off their own debts at dis
count, and at once became the ardent
champions of silver resumption. Landers,
Holman, Kelley, and their kind raised the
cry for a silver standard, sometimes disguised
as plea for the old double standard. To
their aid came the bonanza men of the Pacific
coast, who realize that if the decline in silver
continues the mining of that metal will cease
to be profitable, and who perceive that if the
silver dollar should again be made legal
lender in payment of all debts it would not
only dsplaee gold but also government notes,
it being worth less than these last. Thus a
great demand for silver,would be created, and
it would appreciate in value. The object OF
both these classes of silver advocates were
fully exposed in the course Of the debates.


The opinion of DIR. Linderman, the Direc-
tor of the Mint on the silver question is of
interest in this connection. Speaking of its
recent rapid decline he says that ii has now
reached the point where France::and her mon
etary allies-viz., Belgium, Switzerland
dard-must either shoulder the German sur.
plus of silver or prepare to abandon the
double standard and adopt pure
ly gold currency. The reason of this is that
silver is more valuable in those countries
where it is used as currency than in those
where it has been demonetized; and it will
certainly and irresistibly flow to those coun-
tries where it will command the highest
price. Should the United States at this time
return to double standard, it would be
placed in the same embarrassing position
which France now holds. DR.. Linderman
continued by saying that If thenatons which
still maintain double standard continue to
adhere to it, the gold which they have now
in circulation will disappear, and be thrown
in large quantities upon the English and 9th
er markets, including the United States.
This would tend strongly to restore the equi-
librium between The two metals throughout
Europe. From these facts it will be seen that
if the United States adheres to it present pol
icy, the great decline in the value of silver
may, by causing an accumulation of gold in
England and in this country, make it easier
than it otherwise would have been for the
United States to resume specie payments OIL
the 1st of January, 1879, or at some subse
quent date not very far in the future.