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About The Solid South. (Conyers, Ga.) 1883-1892 | View Entire Issue (June 20, 1891)
THE ‘ tILVER I QUESTION. ‘ n! :13:an JONES. Iran: The Atlanta. Constitution. I. The Importance of the Issue~0ur Gold an «saver Money up to 1813. The gravity of the silver question canned well beover-estimeted. Coined silver is money; ‘ money is a tool at trade; trade is the process of ~exchange by which the ever varying and con ~|tuntly increasing necessities and desires of *men ere satisfied-necessities and desires ‘bounded only by the apparently iliimitabie de ‘mefids of an expanding civilization. Without 'money theie would be no trade except barter, and little barter- save that necessitated by the absolute and altogether indispensable re; --quitements of mankind. Any question, there iore, which involves the denial or impairment M)! the right of either of the great money metals to discharge its full duty as money. is --one of prime importance, not to be dwarfed by xcomparison with any other issue, since its de‘ termination afiects every person in the com munity—not incidental] y and occasionally, Ibut directly and at all times. It is only within a few years that this ques tion has been of practical importance to the people of the United States; ~?ertiy because of the absence»up to 1873—of partly egisiation hostile to either metal specie and owinz to the suspension of payments at the time of, as well as before and after such, nnactments. with subsequent As investigation and and argument of us are to grow out vsuch legislation, it is the natural order to in quire what was the legal status of silver before and at the time of such legislation; what was the purpose of the lawmakers and what evils. ii any. they intended to remedy. During the colonial period we used both gold :end silver as money, as they had always been used, as far back in the history of the world as Great there is any record. Though subjects of Britain. it was not so much the 1 dol Eli§iish er, which pound the colonists as the preferred. Spanish milled Of all ‘ coins now in existence, this siiver dollar is the «one of either metal most familiar to mankind. Long been coined before in it came to Europe us from Spain it had central as the “thaier,” and it was recognized by congress during the revolutionary war as 'the unit of value. This “was the status at the time of the ratification of the constitution, in which power was given «congress “to coin money, regulate the value thereof, and of foreign coin," and states were forbidden to “coin money” or “make any 'thing but gold and silver coin, a tender in pay ment of debts.” In the performance of its plain duty; the second congress passed a hill entitled, “An act establishing a mint and meguiating the coins of the United States,” which became a law Apri 2, 1792, having been approved ilton, by Washington. At this time Ham the federalist, was secretary of the treas-r my, and J efferson, the democrat, secretary of state. The former, in his report to congress, ‘upon which this legislation was based. recom mended the double standard, and said: “To mnnul the use of either of the metals as money is to abridge the quantity oi circulating .medium, an is liable to ail the objections which arise from a comparison of the benefits «it a. mu with the evils of a scanty circuiatiou,” and Jefferson, after reading: the same, wrote to llauiiitou, saying: “I return you the report on the mint. 1 emmur with you that the unit must stand on both xnetais." “31:2 'ninth section of this coinage act de- , ,fiw. v.--v_‘-- v- -u... v4...ubv mu- “0- 1 «named: That. there shall he, (roux time to time. Struck 1nd cnlued m. the anus “fink, (mums 0! gold. snver and copper 0f tin: hvuuwuug denolnihmuuns, 7th“)?! Ind dnaurhruunn, er. 1 E:\ghoa-(such tu he of the value 0! 3H) or units. and mu coutahx 2475( grnuv‘ u" yum). 0t 2'10 gnu“: of auuuuu‘d go‘d. [Then lnuuw pnwh-unua (or mu: oag\eu and ‘ Details of legismtion tiresome. and they will not be aye Into than is gone more necessary to a correqt understandin Joim of the process of demonetizatwn. Sepator Sher man, of Ohio, introduced a bill m 1868 to establish a. in}; single standard of it. [niche “exclusively of gold,” but 90mm came next congress, Apnl 28, 1870, Mr Sherman mtroduced a D111 “revxsmg the laws relating to the mints, assay offices and ‘ coinage from ecretary of the United of the Treasury States,” and Boutwell, offered in a. which letter it waspmted that there had been no revision of the of comageilaws film hm (offered since 1837, by and Sherman) that the paasa%e ‘ ‘ wuu d | ‘ “cumiuce hupurmm, to branch the emcicncy 01‘ the public and economy servicc.” of This this a ‘ . mu,wich Some angm; amendments, passed the senate.went couuniuee co the house, was referred to the coxuufie anxun xnunts. too late and to reported be acted back, upon, with by other [\11‘. K3152? 3:131:23?.‘Yfiéfiflk‘ié"?i‘.3‘.£‘::3§;‘3““;533‘ey‘w 38 cg rs l’ténnsyh]tuna"t racism?“ o'_ the next (on. vsee nd »_ the r hi“ without: alucnquufut [‘b‘x‘th'_rep‘.“"’cd ~r°inh u cumunu.un. unnamed mm“. mm \ *u “‘ 79“““Wae :_ muuuury du mrmueu: uud. in alxgwéfluu .. ”Ml“ the ‘ - 'atkaun N, ponéé:h§£d‘§‘gé: THE ‘ SILVER l QUESTION. By Henry Jones. IIL—The Conspiracy Against Silver. The original conspiracy against silver began in Europe, but in its inception the metal at tacked was gold. not silver. The occasion of the onslaught was the discovery of gold in California and Australia. For more than three centuries prior to this time the annual yield of silver had been more valuable than that of gold, but the marvelous output of these new mines completely reversed the pro- ‘ portion. so that the decade ended with 1850 1 showed a. product of near1y$2.000.000 more 1 gold the»: siiver. and the difference was in- ‘ creasing with each year's mining. ‘ This sudden and very considerable addition to the steak of money excited and alarmed the money dealers of Europe. Opinions of the probable future yield 0! Australian and Cali fornian gald mines varied, one calculation being that the annual output would soon be $350,000,000. These apprehensions were ex pressed by M. Chevalier in his “Fall of Gold, 1856—57,” who said: "The quantity of gold annually thrown on the general market ap proaches, in round numbers. a miilard of francs ($200,000,000). These 'two countries must yet, for a long series of years, produce gold in such quantities and on such con ditions as to render a. market decline in its value inevitable. It is absolutely certain that so vast a production should be accom panied with a great reduction in value. In no direction can a new outlet be seen sufficiently large to absorb the extraordinary production of gold which we are now witnessing, so as to prevent a fall in its value. Unless, then. we possess a very robust faith in the immobility of human affairs, we must regard the fall in gold as an event for which we should prepare without loss of time.” Here we have the keynote to the whole scheme of demonetization, end in accordance with it Austria and Germany actually did de monetize gold. Now Chevalier, Who after wards became as hostile to silver as he was then inimical to gold, had no prejudices for or against either metal. His complaint was that money was getting too abundant, and he attacked gold because at that time it promised to be the more plenti ful for the future and money could be made scarce): remembered by demonetizing gold than silver. Let it be that this attempt at demone~ tization, whether aimed at gold or silver, had precisely the of same metallic object—the reduction 01 the amount money in order to en hance the value of that which should be left, by lowering prices. Paris Said J M. Victor Economists: Bonnet, later on in The oumal des “The world is now saturated with the precious metals, and if there is any danger against which it is necessary to guard, it is that this saturation shall become greater. " ' " II ‘ the annual production of gold is now re L duced to 500,000,000 francs, let us ‘ thank heaVen for it, and let us wish ‘that wherhy too metallic Med Said great it Chambers Jacob may we money abundance should not Behren, which of be Commerce, be and is too embarrassed. member to not be rapidly apprehended.” the to of the the scarcity increased, It British associ- is the of 3 \ royal coinage: now if fl11(1g01d _Goid the the would silver commission had very “I standard believe otherwise not poorest been of that abroad be country 1868 generally very England had on lunch in international been introduced. the would kept reduced world, up be 1“ poured Value. Into and‘we hnuimid. should have had all the gold 2313;223 All the debts owiu'r to {he ?:‘chStheunnpaid iyohz‘)lgégiifigecrgé?:§rsggégeiggs in the deprecizrted Vvornh, the mint, who, in his testimony before the United States monetary commission of 1876, said: “Within thirty days after the policy of Germany had been determined upon, of course everybody saw and everybody knew, that to carry out that policy, Germany must get rid of two—thirds of her silver and put an equal amount of gold in stock. That would make an t immediate draft on gold stocks in the market, and tfi br kers commenced to charge a difference and decline of silver commenced immed iateiy.” decline (in gold) assis That respect to was ted and accelerated by the demonetizers or this country. The foolish Wayfaring man may sometimes err, but he knows well enough that the object and the soie purpose of the demone tizers on both sides of the Atlantic was to drive out one money metal in order to enhance the value of every coined piece of the other in the civilized world. IV. A: between dollars of gold and silver, the su ver dollar essentially the honest dollar. The advocates of the single gold standard, in such consideration as they give the question, indiscriminately mix abuse and argument. They seem to derive much; pleasure in de nouncing silver as “cheap money" and “de ‘ ‘ based currency," and they are fond of speaking i of the silver dollar as the “short-legged dol lar,” or the “72-cent dollar.” The 0311 for the recent gold standard meeting in New York spoke of tree coinage as “debasing our cur rency." The chairman gracefully and delicately compared these congressmen in favor of free coinage to “a defiant criminal under sentence of death." who insisted that not he, but the world was tobe hanged. The democratic ex president wrote of “the dangerous, the wreck less experiment of free, unlimited and inde pendent silver coinage.” Another gentleman spoke of the silver “craze." Ex—Comptroiier Trenhoim called it a “noisome thing,“ and likened it to the efforts of monarchs to “de base their coinages;” and a college professor said it was a. “huge deceit,” and had been “fed on ‘boodle’ exercised in the lobby of congress.” In the face of this avalanche of abuse, di~ rected against a majority of the people of this country, let us have the hardihood to inquire what dark and desperate crime was sought to i he committed by the people’s representatives 1 in congress. At that very meeting Mr. E. ‘ Ellery Anderson. its chairman, began his speech as follows: The silver bill now fiending in congreaa provides that from and after t e date 01 its passage “the unit of value in the United States shall be the dollar, and the same may be coined grains o! 412% of standard grains of standard silver, or of 25.8 gold, and the said coins shall be a. legal tender or an debts, public or private.” The act bullion also provides deposit that any the owner of With silver or gold mint 1n the nay U ted be same formed any standard dollars States, to into or bars for his benefit and without charge. This is the wicked legislation against which these complaints are directed—a bill which passed the United States senate at each session of the last congress, and which contained the law as it was from 1792 to 1873, except that from 1792 to 1837 there were 3; more grains of al loy in the silver dollar, and there was no provis ion 10!: the gold dollar until 1849. As honest, as patriotic, as judicious. as sensible, as well-in formed a class of citizens as this country now holds or ever contained, are denounced and stigmatized as cheats and swindlers ! because they seek the passage of a law which puts the silver dollar just where Washington, and Jefl'erson, and Hamilton, and the second congress placed it, in the identical position it occupied from 1792 until 1873, when it was thrust from our coinage by a. law, the purport 01 which was not understood by a dozen men ch “sad it. One may THE SILVER QUESFION. By Henry Jones. 7. The variation in the price of gold and sit vor bullion since 1873 due solely to leyislat'ion hostiie to silver. The promoters of the scheme to force the single gold standard upon the United States, after having depreciated silver bullion in comparison with gold bullion, through legis lation designed to accomplish that very pur. pose, now oppose the remonetization of silver because it is depreciated. Argument of this character is entitled to as much consideration as the reasoning, for instance, of a. master mason who, having tied the hands of a journeyman behind. his back, refuses to set him to work because he is not able to hold a trowel. Pertinent advice in these cases would seem to be, to the mason, to cutthe cords which bind his workman and give him oppor tunity to show whether or not he could lay btick as well as he did before he was tied up; and to the gold men, to ‘ repeal the legislation which. since 1873, has 1 deprived silver bullion of its right of free 1 coinage into dollars. and then see if silver bullion would not be worth as much in 1891 as it was in 1873 under the same tree coinage laws. But these gold worshipers, who are in that condition of grief and despondency on account of the depreciation of silver bullion, as the employer in the case supposed would proba— bly be in consequence of the crippled condition of the bricklayer, refuse to admit that legisla tion is in any degree responsible for such de preciation. 0n the contrary, they persist in the assertion that the gold price of silver bullion is lower, because. and only because, of the increased output of silver from the mines. Upon this proposition the friends of the free coinage of both metals join issue squarely, and, though the burden of proof rests with the gold men to show that increased production of sil ver bullion has influenced its price, the onus probandi is waived and they stand been ready to prove that the output of silver has a very unimportant factor, if factor at all, in deter~ mining the price of si1ver bullion. If during any series of years the price of silver bullion has fallen on account and in conse quence of an increased silver product, then an increased output of gold should have been followed by alower price for gold bullion, or What is-thesame thing relatively, bearing in mind the fact that the price of gold builion is fixed by act of parliament, a higher certain price fact for ‘ silver bullion—that is to say, if a. in respect to the production of silver results necessarily in a lower price for silver bullion, then a lower price for gold bullion should be the necessary resultant of this same fact when connected with the production of gold. But if it can be shown that a much greater increase (than that relied upon; in the case of silver) in the output of gold did not change the price of gold bullion, in respect to silver bullion, at all, then it is clear that the reduction of the price of silver bullion must be due to some other cause than its increased from production—and record. this is exactly what appears the From 1545 for more than 300 years the an nual yield of silver was greater than the an nual yield of gold, and from the discovery of ' America up to 1848, Chevalier estimates ‘ the production of gold and silver as £01- 3 lows: Gold. $2,626,000,000;si1ver, $5,705,000, ‘ 000. In 1848, the average price of silver bul ‘ lion an ounce in London was 592; pence. From 1 1849 t01b‘72, inclusive, the output of the re spective metals was as foilows: Gold, 32.2526,— 000,000; silver, $1.0}5,600,000. In 187:5 the average price of silver was 55)} had pence. During these twenty-tour years there been nearly three times as nxuch gold as silver nxined, t nlor'e gold in the quarter of a century than (or the .350 ears before; the stock of nzoney since ‘ u 0 silver and Sublic ebts must reputation be settled that they with insist the “best that money,” the most,” that is iest “the money repudiation which is worth the taint ot' should linger somewhere about the public gar ments. They were never known to complain of the money of payment when, in consequence of its scarcity, a dollar was increasing in vaiue every day; but when they think they see a prospect that the debtor may have a lawful choice between two kinds of money, they clamor for legislation though to compel it be him to pay in the dearer coin, more than he ought to pay, or had any Idea that he would be called upon to pay When he made his con tract. Naturally enough these people say that all indebtedness of the government must be paid in goid only. morally The United bound States are all legallytequitably their obiigations and to pay strictly in accordance with the .terms of the contract, but not otherwise. It is no part 0: the duty of the government calls to for pay either one by penny more than the contract pay ments in more dollars, or in anpreciated obligation. gold The coin when silver satisfies the rights of the people, who pay, are every whit as sacred as those of the creditors who receive, and it is not the business of public officers. the servants of the people, to dexraud either party. It is their it duty, that moreover, public and their plain is duty pani to see to no more money out on account of public obligations than is absolutely necessary to satisfy them according 3 to law. 1 Twenty~fi ve years ago the great bulk of the ‘ bonded indebtedness of the government was in the form of what were known as “five twen ties.” They hmi been negotiated at afiiscount, and were payable in “lawful money,” that money being treasury notes, or ”greenbacks.” which.by the act authorizingithem, were a legal tender for all public and private debts. except public customs dues and interest on the debt. In March 1869, after all these bonds had been sold by the government and had become private property, the congress was induced to pass a law called, “An act to strengthen the public credit.” making these bonds payable in coin, the sole object or which, intended and effected, was to materially in crease the value of these obligations in the of hands of their owners, at the expense, course, of the taxpayers. It is reasonable to suppose that these bond holders would have been satisfied with this gratuity, amounting to at least 30 per cent 0! their holdings, tendered them by a free handed and liberal congress, but the ease with which they changed a contract payable in law ful money to one to be satisfied With coin stim ulated them to a further alteration and viola tion of the contract, so that all government obligations must be paid but in gold only. of Noth- the ingdstauds in their way the law Ian . The act of March 18th, 1869, ”to obligationsloi strengthen the public credit.” declared all the government payable in expressly coin or its provided equiva‘ lent unless where it was that pay ments might be made "in lawful money or other currency than gold or silver." The next legislation on the subjeut was the act of July 14th, 1870, “to authorize the refund ing of the national ‘public debt.” which “in provided coin ot the to: payment of obligations present standard value," that is of the stand- gold ard value of J uly 14th, 1870, which dollar was a 412.6 dollar of 25.8 grains, or a silver of grains. The act of January 20th, 1871, amended this act in a few nomimportant particulars. There demonetizing was no further legislation Februar prior to 1873. the silver act of adyemonetized 12th, While the silver dollar was in and suspended condition, that is between February 12. 1873, and February 28, 1878, con gress passed the act of January 14, 1875, "to provide for the resumption of specie pay ments," which declared that on and after January 1, 1879, the secretary of the treasury shall redeem the outstanding greenbaoks “in ‘ coin," and provide rodozizptton may a fund by selling any of the bonds authorized by the act coin." of July Nothing 14-, 1870, at not this less than )uu‘, "gold" "1n is said in act; uhout. or "silver " or "gold coin." or "ullver coin." States were open freely to the holders of gold bullion and silver bullion. Dollars 01' silver and multlples tender of dollars in gold were alike legal The debtor for all debts. public and private. might law fully tender If either coin to him most conven— ient. for any reason, or no reason at all, the one kind of money was scarce or boarded, the other stood ready to take its place and do its part in maintainin g equities between debtor and creditor. prices and commodities. After more than eighty years of this perfect equa‘dty, there came the act of 1873. to not only disturb. , but completely sunder this long—existing and close and relationship. What was this law, and why how was it passed? 11. "How silver was demanetized by the act of 1873 and the revLs’ion of 1374. The silver dollar was demonetized by the act of congress of February 13, 1873, am; the revision of the statutes or J une 22. 1874. The country had recently passed through an exhaustive and costly war. The volume of indebtedness—Jedeml, state, county, municipal and private~was enormous, and vastly greater than ever before. Specie pay ments had been suspended for mere than ten years, the only money in circulation being green backs, national bank notes and fracti onal cur rency. Resumption was intended and expected, but no preparations had been made or date fixed. Our mints were open to gold and silver dollars Mike. and coinage was going on. but gold was at a. considerable premium compared with paper, and silver was slightly higher than gold. This country, also, more than any other nation, was a producer of both gold and silver bullion. Bearing this situation in mmd, is it to be assumed, or does it comport with the intelligence and business sense of lawmakers to believe, that congress would intentionally and deliberately de monetize silver, of which this country was the chief producer, and thereby add a. very let go amount to the heavy burden of an enormous pub lic and private indebtedness? 0f the leg islation and the effect 0t it. there is, unfortunately. no doubt. but there is no evidence of a concurring deliberation and intention on the part of congress. On the con trary, there is no lack of testimony to prove that the obnoxious legislation was a. part of a consplr cluding eey involvingother foreign countries than ours,and m— as well as native talent. No tune for tumpermg with the comage laws could have been more propitious. Whether we favored, by policy and statute, bimetallism or i monometallism.tbe singie or double standard, free ' or restricted coinage, was of no importance. The gold and silver coined did not circulate, so people were not interested in, nor did they concern themselves about Haa coinage laws then practically l inoperative. it riot our specie been in circulation, as woulg was to suspension and is now, the act of 1873 not have been voted upon without the closest scrutiny. nor would it have passed after 1 having tion; ut, been under subjected the peculiar to a thorough circumstances, examina- the 1 ‘ conspirators plish their object against without silver enlightening were able to accom- ‘ the public, and without invitation from congress or an any quartet to d9 30. , , , ' 7 SUPPLEMENT. , The foiiowihg ietters on the SILVER QUESTION were prepared by Mr. Henry Jones, who has made a special study of National finances, and who is prohahly the best informed man on this particular subject in the South. The letters were prepared for tho fiTLANTA CONSHTUTICW in response to a number of inquiries received by that paper for an explanation of the Silver Question. Mr. Jones’ letters give a clear insight Into the history of silver legislation in this country. The consmracy against Silver, resulting in fits demonetization in i373, and the resuit thereof, forms a very readable chapter, which is particuiarly interesting at this time, when the whole country is clamoring for financiai reform, and relief from the burdens resulting from iegislation discriminating against 1he great mass of the people. The ietters should he read, studied and kept for reference.
