Year: 1875

AS this country is pledged to return 10
specie payments in 1870 it becomes a ques.
tion of moment what standard of value we
shall ultimately adopt. OF late the tendency
in all European countries has been toward
the adoption of gold. Russia still clings to
the antiquated silver standard, but Austria,
the only other European upholder of silver as
the sole legal tender, has begun to coin gold
horin pieces answering in value to the French
napoleons. in France, Italy, Belgium and
Spain, the double standard is theoretically
held, though in effect it is abandoned, and the
composite legal tender of England adopted in
It's place. Germany has chosen a gold stand
ard and is demonetizng silver. The Scandi-
navian kingdoms are following her example,
and Holland is looking the same way. In
England gold is now the principal measure OF
value, though for long time English econo-
mists, following in the footsteps of Locke, ar
gued for silver. Outside of Europe silver has
the preference. 1t is the standard in all Asia,
Except Japan, which has of late taken TO
coming gold piece little less in value than
our dollar) and in most of the South Ameri-
can states. In this country the double stand
ard of value prevailed in practice up to 1858,
the silver dollar being standard coin of un-
restricted legal tender concurrently with the
gold eagle and its fractions. But the legal
ratio OF gold to silver tended to drive the sill
yer from the country, and to remedy this the
government in 1868 reduced the dollar frac-
tlons to the condition of token coins, and
practically suppressed the coinage of the sill
yer dollar. The coinage act OF 1873, of little
moment in view of our vicious currency, con-
stituted the gold one-dollar piece the unit Of
value, aud restricted the legal tender of the
silver trade dollar aid the half-dollar and its
divisions to an amount not exceeding i've dol.
lars.


The approach of specie payments affords
us an opportunity to choose between the four
systems now in use. We may ordain that all
contracts expressed in money of the country
shall, in the absence of express provision to
the contrary, be taken 10 mean money oi
silver, while other coin shall be left to circu-
late at varying market rates as compared with
this principal kind of coinage. We may ordain
the same regarding gold. We may adopt the
double standard and emit coins of gold and
silver, enacting that money contracts may be
discharged in one or other kind indiferently,
We may maintain gold as the principal legal
tender in which all large money contracts
must be fulfilled, and order that silver shall
be received in limited quantities as equivalent
to the principal coin.


The silver standard has, with the excep.
ton of Henry A. Wise, no advocate of note
in this country. 1t has some recommends
tions, as the German demonetzation of silver
is driving the metal abroad and lowering Its
value, thus rendering specie payments easier
to be brought about by us. But it is scarcely
worth while to make change which will fail
to bring us in accord with the prevailing mon
etary systems of the world. The gold stan
dard is as yet an experiment, and certainly
has not worked remarkably well in Germany.
We Inay be excused from attempting it. The
double standard we have once tried and re-
Jected, and there seems to be no good reason
for taking it up again when its warmest ad
vocates are on the point of discardjng it.
The composite legal tender system, with gold
as the measure of value and with silver re.
ceivable in limited quantities, now legally
adopted in this country, and working so sat
isfactorily in England, seems to be the better
one for Us. Apparently there is no need of q
change However, if a change is thought
desirable it probably can be accomplished bet
ter now than at any other time. The subject
is certainly deserving of careful consideration