Newspaper Page Text
yinuc-JviUc tiMte.
PUBLISHED BY
j. C. Me MICHAEL.
BARNESYILLE* GEORGIA.
THURSDAY, - - FEB. 21, 1878.
Coinage of Silver Dollars.
Senator Hill delivered the follow
ing speech before the Senate on the
Bth insfc. :
Now. Mr. President, I shall deal with
this question as I endeavor to deal with
all questions that come before me. I shall
-i <.t convictions, and shall
speak them as plainly as a ...■... T
shall certainly question no other gentle
man's patriotism and arraign no other gen
tleman's love of truth and fidelity to right
I take my position with those who earn.,
cstly and sincerely desire the restoration
of the silver dollar to the coinage. I be
lieve that the silver dollar ought to be re
coined and remonetized. lam not influ
enced m that opinion in the slightest de
gree by an argument that fell from the
Senator from Maine (Mr. Blaine) yester
day- That Senator certainly entertained
us with a most charming and beautiful
speech, in much of which I agree, but he
made a constitutional argument in the be
ginning, to the point that Congress had no
power to demonetize silver and he called
to liis aid the celebrated dictum of a very
celebrated constitutional lawyer, Mr. Web
ster. The Senator says :
No power was conferred on Congress to declare
t’eit either metal should not he money. Congress
lias tii re to ra. in my Judgment, no power to de
monetize silver any more than gold; no power
to demonetize either anymore than both. In
this statement 1 am hut repeating the weighty
dl.'t uni of the first constitutional lawyers. “I am
cm i atnlv of opinion,” said Mr. Webster, “that
gold and sliver, at rates lived by Congress, con
s' ii nte the legal standard of value In this coun
t • . andthat neither Congress nor any state has
adthorlty to establish any other standard or dis
place tills standard.”
Now, sir, what was Mr. Webster as
kd-ting in that ? Only that the constitu
tional money of this country is metallic,
aud lie intended to assert, and did assert,
what I trust every man in this country
will weigh, that there is ro power in Con
gress to establish any other money than
mt.'ilic money. Congress cannot, under
the power to coin money and regulate its
value, make a money of paper or of any
promise to pay The Senator’s logic is
as faulty as his opinion of the constitution
and of Mr. Webster’s view of it, of which
lie also says:
congress lias therefore, in my judgment, no
PO'.n er to demonetize silver any more than to de
monetize gold; no power to demonetize cither
any more than to demonetize both.
Therefore the Senator concludes that
Congress is compelled to monetize both
nn 1 has no power to refuse to monetize
either. I regret that the Senator is not
in his seat. How would his logic work?
Congress has no more right to refuse to
demonetize one ounce of silver than an
other ounce of silver. Therefore Con-
gress is compelled to monetize every
ounce of silver! Congress has no more
power to demonetize one ounce of gold
than another ounce of gold. Therefore
Congress is compelled by the Constitu
tion to monetize every ounce of gold!
An ! the conclusion to be derived from
the Senator’s logic would be that every
ounce of silver and every ounce of gold
iu ih.s country would have actually be
coined into money and that Congress
wo. ild not l)o performing its constitu-
tional duty unless it did. Why, sir,
Congress has the power to com money, l
and this power must be construed, as
every other power, to be exercised wise*
ly and according to the wants and needs
ot the country. It cannot make money
of paper, It can alone make money of
metal—"-old, silver, or copper—some
thing of that kind, and it must make
just as much money of th it kind as the
wants and conditions of the country
shall demand. Congress has power to
declare war; but does that mean that
Congress is under constitutional obliga
tion always to keep the country in a
state of war." 1 If that be the constitu
tional obligation of Congress for ten
years it has been discharging its duty
very faithfully.
Mr- Blaine. Do I understand the
Senator from Georgia then to maintain
that Congress has the right to declare
that neither gold nor silver shall be
money.
Mi. Hill. I certaiuiy think Congress
has the power not to demonetize either
gold or silver.
B. Has the power not to do it?
11. It is the same thing.
I>. I think Congress has the power
not to do a great many things. Does
the gent! man desire his proposition to
be put in that form, that Congres has
the form not to do it?
D- iue beuator can put ii in any form
lie desires.
No, I desire the Senator to put
liis proposition in his own form. I un
derstand the Senator now to rest liis
logic ou this that Congress has tl;e pow
er not to do a certain thing, Is that it?.
11. 1 es, sir; 1 did say so.
Ij. I imderst >od the Senator to say so.
As he referred to me, I shall be glad to
have him state his position.
H- I say this: Congress in coining
money lias the power to coin gold, or
silver, or copper, lither oue, or all, or
two of them.
B. There is no issue on that.
11. Very well; and it has a right to
drop either from the coinage and not
make it money.
B. And it has the right then to drop
all?.
B. Bit is wise and proper to do so,
it has.
I>. i hen I understand the Senator to
say that under the Constitution of the
L nifl??T States,' in his judgement, Con
gri > ; has the right to declare that ueith
er gold nor silver shall be money in
this country?
11. Mr. President, 1 do not believe
myself it would be wise or anything but
au abuse of power.
B. Oh. no. Ido not care about wis
dvuf. i hat is not the point. We want
te know what is the power. Expedien
cy we will settle ourselves. I want the
Senator to define hts constitutional view
of the power of Congress.
H. I have defined my constitutiona
view of the power of Congress, and I)
regret it docs not satisfy the Senator
from Maine.
B. I wanted to satisfy the Senator
from Georgia.
11. That it is impossible foi the Sena
tor to do with his ideas of constitutional
1 aw.
B. I want the Senator from Georgia
to satisfy himself.
11. If the Senator will take his seat I
will endeavor to do that.
B. I still want before I take my seat,
if the Senator will permit me
H. I do not permit the gentleman
13. Will not permit what?
11. ZL U V .... .. . ...
, . -”otmning on this
subject.
B. All right.
H. I have simply said, what I repeat,
that this power to coin money is like
every other power in the Constitution
v sted in Congress, to be wisely exer
cised according to the wants and needs
of the country; and if Congress shall
conclude in its wisdom that the coin of
ono metal will furnish a sufficient stan
dard of value for the country, Congress
has the right to coin but one. If Con
gress believes that it should coin both
metals and that tho condition of the
country needs both metals, Congress lias
the right to coin both metals.
B. And the right to coin neither?
11. Certainiy, if the needs and condi
tions of the country require that it
should coin neither; but I cannot an
swer an argument constitutional in its
pretentions, which is absurd in its char
acter. I assume that Congress will be
wise; I assume that it will exercise an
admitted power wisely—that is all; and
the Senator’s questioning has nothing
to do with this view. I did not mean to
criticise the Senator except to enter my
protest against the idea that becanse
Congress has the power to do a thing,
therefore it is compelled to do it. Con
gress must exercise its power wisely ac
cording to the wants aud needs ot the
country; and the act of Congress which
strikes silver from the coinage or de
monetiz ‘s silver, or any act of Congress
which should demonetize either metal,
must be admitted by every lawyer to
be a constitutional act, Congress is
responsible to the people for the wise
manner in which it exercises its powers.
That is aIT
Now another thing. The Senator
from Maine gave us a most beautiful
peroration. I must say that I have
rarely heard anything in any assembly
on any occasion more beautiful aud
interresting, and 1 assure the
Senator I am not doing this
now for the purpose of replying to his
argument, which he seems to misun -
derstand, but for the purpose of em
pha.-ialng some Doints in which be him
self would agree. The Senator said :
The two metals have existed side bv side In
harmonious, honorable companionship as money
ever since intelligent trade was known among
men.
What I wish to say is that there has
always been a condition of that com-,
paniousliip between the two metals.
Xeyer in any history of the world, in
any country, pagan or Christian,despot
ic or republican, either while revolution
was raging or subsiding, while islands
were rising or sinking, while empires
were prospering or crumbling, did sil
ver and gold ever keep company with
each other except upon the inflexible
rule of equality in value. The moment
one metal becomes depreciated the oth
er metal flies away, and the moment a
depreciated paper currency comes in
sight both metals hurry to their hiding
places. The American Congress has
done what thegentleman seems to think
is so absurd, it has actually made a
money of paper and given that money a
legal tender which practically for fifteen
years demonetized both gold and silver.
But, sir, they had a reason for that, and
I make no point on it.
I favor the remonetization of silver,
Mr. President, not because, therefore, of
the constitutional point made by the
Senator from Maine, but because I
think its remonetization would be wise
and proper in the present condition of
the country. I believe in the first place
the people desire it, and as there is no
constitutional difficulty in the way, I
think the desires of the people ought to
receive the respectful consideration of
Congress. I think in the second place
that a wise and proper remonetization
of silver would add to the now too limi
ted amouut of metallic money in the
country, and I think that we greatly
need a proper addition to our metalic
money.
I think too that as silver is a product
of our own country, that as we make as
much silver as the rest of the world com
bined, it is proper that we should do
whatever is well calculated to encourage
its production and increase demand for
it.
Then, again, I state to the Senate
what was so much better said by the
distinguished Senator from Alabama
(Mr. Morgan) that in the country where
I live there is population, the negro
population, who liaye a peculiar attach*,
ment to silver money. Naturally un
thrifty, naturally disposed not to take
care of their money, they ought to be
encouraged to be frugal, and, therefore,
I believe that to give them silver money
will create the passion for hoarding it,
and as a necessary consequence to econ
omise. I think for these and many
other reasons that silver ought to be re
in? netized and the silver dollar ought to
he recoined.
But, Mr. President, I canuot support
the bill before the Seuate in the shape
it came to us from the House. At this
time I ask the Senate te give me its at
tention while I undertake to state the
reasons why I cannot support that bill-
I believe that if the bill shall pass un
amended, it will enrich a few individ
uals ; it will confuse values, proloug
the present painlul uncertainty of bus
incss, increase the want of confidence
which is contracting the circulation of
money, will necessitate early additional
legislation, and will take its place iu his
tory as the pickpocket bill of American
legislation. On the other hand I be
lieve a few amendments to this bill will
avert all these evils, will secure an ad
dition to the limited currency of the
country’, and will restore confidence and
aid in the work of resumption. But in
no event, whether amended or unamen
ded, will it bring a tithe of the blessings
the people are encouraged to expect,
and it will not make one failure less in
the catalogue of bankruptcies, 1 oppose
this bill because I favor all its professed
objects and oppose all its real effects, as
I believe those effects will be found on
experience to be.
Mr. Allison. The House bill?
H. The bill as it came from the House
amendments I wouiu .—. t(
will be naturally suggested by the ob
jections 1 shall state. There arc some
amendments already pending which will
cover most of my objections, if adopted
Iu the first place I object to the free
coinage feature. We do not allow the
free coinage of the present fractional
silver coin. Will some Senator tell me
why the silver dollar should be admitted
to free coinage aud the fractional silver
not ? We are told by the director of the
mint that during the year 1877 the bull
ion purchased for coining fractional sil
ver cost $34,118,173.72 ; that produced
a coinage in fractional silver of $39,685-
688, and gave a seigniorage to the Gov
ernment of $5,556,714.74. Now to say
that you will place the coinage of the
silver dollar upon a different footing
from the coinage of fractional silver,
make one free and the other not, is to
throw upon Government all the expense
of coining silver and give the silver bul
lion bolder ali the profits of its coinage.
It is said that this is the case with gold;
that there is a free coinage of gold. That
is true. Why ? Is it right to give llie
silver dollar free coinane because gold
has free coinage ? It is right if the
condition of the two metals is precisely
alike, but if the condition of the two
metals is different, then it is wrong.
Now, what is the condition of gold?
It is at a premium ; it is not iu circula
tion ; it does riot seek circulation ; it is
in demand for exportation as bullion.
But the Government needs gold, and
it is very important to encourage its
coinage ; and the Government to en
courage the coinage of gold may well
allow in free coinage in the present
condition of that metal. But do any
of these reasons apply to silver? Sil
ver bullion is not at a premium. Sil
ver bullion is at a very great discount.
Silver bullion is ten per cent, below
par ’ silver bullion will rush for coin
age as scon as you make the law, be
cause of that fact. It needs no en
couragement from the Government
to be coined. There will be a tenden
cy in the rush of silver to displace the
coinage of gold aud absorb the power
of your Mint. The holder of gold bull
ion does not derive the profit from the
free coinage of gold that the holder of
silver bullion would derive from the
free coinage of silver. Now when
gentlemen tell me that silver ought
to be put upon the same eon Ii tion of
coinage with gold, then I say you
must first put silver upon the same
condition of value or position before
the country. Otherwise the argument
fails.
Then, again, the expense of coining
silver is four times as great as the ex
pense of coining gold. So we arein
formed by the Director of the Mint;
and he tells us indeed that it costs
no more labor or expense to coin a
twenty-dollar gold piece than to coin
one dollar of silver.
So you perceive that the metals do
not stand in the same condition or in
the same relation of value in any re
pect; and what might be wise to en
courage the coinage of gold is not
needed or wise to encourage the coin
age of silver, and I beg ray friends to
consider that there can be no excuse
for this Government, under the pre
tense of relieving the people, to adopt
a system of coinage that will put mill •
ions of dollars iuto the pockets of a
few private individuals, silver-bullion
holders. It is the skill and labor and
the cost of the United .States which
convert this bullion into coin. There
is no reason why the holder of bullion
should get ail the benefit of this skill
and labor and expense employed by
the Government. There is no reason
why he should have any more than
the market value of his bullion. Such
a remarkable provision has never
been made in any country that I know
of under like circumstances.
The next amendment which I think
ought to be adopted to this bill is to
limit the coinage of silver—the amount
to be coined. The bill, as it comes
from the House, is without limit.
Now-, I wish to call the attention of
the Senate to the statistics of the Mint
The Director of the Mint says.
With our present minting capacity we could,
wit a a mil working force, coin silver-dollar
pieces at the rate of #2,000,000 per month, and at
same lime manufacture the necessary gild
trade, and fractional sliver coinage.
Now, if you open your mints to the
unlimited coinage of the silver dollar
free coinage, while you give to frac
tional currency not free coinage, you
sec at once you would have no silver
going to your mints except for coin
age into silver dollars, and the whole
capacity of the mints would be em
ployed in coining the silver. What is
the result ? The coinage of gold is
stopped. You cannot coin gold with
the present capacity of your mints, if
admit silver without limit to the coin
age and with the privilege of free
coinage. Every Senator can see that.
Then you have to do one of two
things, if you admit unlimited free
coinage of silver: You have either to
appropriate money’ and multiply your
mints and increase your labor and ex-
Ponses immensely, or you have to stop 1
the coinage of gold and fractional sil*.
ver. Oue of these two results is ine- 1
vitable; but will you increase your
mints, and will you increase your la- j
bor and expense to relieve a suffering
people in order to increase the amount
of silver coinage for the benefit of sil
ver bullion holders? The country is in
no condition at present, in my judge
ment, for large appropriations to in
crease the minting power. u
Then, again, we are told if you cm
ploy the whole capacity of the mints
as they now stand to coin silver dol
lars, the extent of that capacity is to
coin $50,000,000 per annum, while at
the present coining of gold aud silver
we can coin from eighty to one hun
dred millions. You will lessen the
amount of metalic money by driving
off’gold in order to coin unlimited sil
ver. That is not the the way to re
lieve the people.
Without these amendments which
are covered by the amendment of the*
Finance Committee of the Senate, you
drive us to the neccessity of stopping
the coinage of gold without any refer
ence now to the question of value be
*- --*•> Hie two metals ; you drive us to
that necessity as a of physical
capacity of the mints or you drive tr
to the necessity of increasing the
mint- by large appropriations in order
to enable bullion-holders to have free
coinage of silver dollars and make in
dividual fortunes. I trust, therefore*
that these two amendments will be
adopted. They are embraced in the
one reported by the Finance Commit
tee of the Senate and if adopted, I say
will greatly improve this bill.
Now, Mr. President, I come to the
main question that I think is invovl
ed under this bill, and I shall discuss
it as briefly as I can.
I object, in the third place, to the
unlimited tender power which it is
proposed by this bill to give to the sil
ver dollar* On the subject of the
power of the Geneal Government to
make anything a legal tender, if it
were an original question I have my
views. I think the power “to coin
and regulate the value thereof” does
not include the power to make a legal
tender, and I do not believe that Con*
gress in fact has the power to make a
legal tender of anything, except gold
and silver. Money is a legal tender,and
Congress has power to make money;
but money becomes a legal tender not
because Congress says so but because
it is the law of the contract. When a
man gives bis obligation to pay dol
lars, bis promise is to pay the stamp
ed coin of the ‘Goverdment; and be
cause dollars are the stamped coin of
the Government and because the con
tract promised to pay dollars, there
fore he tenders what under his con
tract be promised to pay, and for that
reason it is a legal tender. But the le
gal tender power, strictly speaking, is
a different power. What is that ? It
is the law which prescribes the evi
dence which shall establish a tender
and the evidence to establish a refusal
aud the effect on tlie contract of the
tender and refusal.
Now the evidence necessary to prove
a tender, the evidence necessary to
prove a refusal, and the effect of the
tender and the refusal upon the con
tract arc questions for each State to
determine for itself, not for this Gov
ernment. If I give a mau m3’ note t>3’
which I promise to pay him five
bushels of wheat, it is a legal tender.
Whj* 7 Not because Congress has
a legal tender,, but because it is the
obligation of my contract. But the
terms upon which the tender shall be
made and the evidence by which the
refusal shall be proven and the reasons
for refusal and the effect of refusal and
of the tender are all questions which
must be regulated by (he statutes of
the State, aud each State /or itself;
and that is what we mean I>y the law
of legal tender.
But I pass that, because I see it has
been the custom of the Government to
give this legal-tender power to gold
and silver and even to minor coins,
therefore I will assume,Jin deference to
theprecedents of the past that the pow
er to make silver a*legal tender does ex
ifcf.; and il the power to make silver or
gold legal tender does exist in Con*-
gress, then of course it follows that
Congress has power to qualify that
tender in any way it sees proper.
Here comes the main point of differ
ence between me and my frtemls here.
I take it, from all the discussions I
have heard in this body-, that every
man on this floor desires a silver dollar
that shall be equal to the gold dollar ;
I mean in commercial value. I do
not believe any Senator will stand up
here and say to the country that he
desires to coin a depreciated dollar,
worth less than oue hundred cents
The Government’ has issued paper
money which has circulated at less
than par value : but the Governeu
meut never intended that should be
so. It has issued all its greenback
currency, and what is it? A promise
to pay so many dollars. Here is the
bill : “I promise to pay $5.” The
Government never .intended that that
should be worth less than $3. Com.
merce makes it worth less ; but when
the Government comes to redeem it it
must redeem it with $.3. A very* dif
ferent thing is tliis of the Government
putting its stamp on a coin and saying
•‘Thisisa dollar,” when in point of
fact the Government knows it is but
ninety cents. In that case tiie Gov
ernment coins a falsehood, and does it
knowingly. Now, then, I say I do
not believe there is a .Senator in my
hearing who will get up before this
country and say that he desires to
coin a silver dollar which is really
worth but ninety cents and make it
pass for sl. In other words you do
not desire to coin debased money. We
all agree upon this proposition, that
41-i grains of silver, which formerly
made a dollar in silver, now only
make ninety or ninety-two cents.
There is no dispute here as to that
proposition. Four hundred ami twelve
and oue-haif grains of silver are worth
ninety- cents. Why do you propose to
coin it and call it a dollar? lam go
ing to treat mv friends fairly because I
know they are patriotic and honest.
Mr. Cockrell. \\ ill the .Venator al
low me to interrupt him ?
H. Yes, sir.
C. I desire to state distinctly that I
made no such admission as he has
stated. Wo Jo not admit grains
of silver coined by law with legal-tender
power are worth only ninety cents to
the dollar. 0 i tuo contrary, we say
that two silver half dollars containing
only 355.8 grains sell to-day in the New
York market for 95,58 cents in gold.
11. If my friend will just wait, lie
will be astonished to see how unneces
sary his statement was. lam not stat
ing what the silver dollar will be worth
after it is coined, for 1 know his opin
ion on that; but lie starts out with the
fact that is not proven. 1 say that
proposition is that 4121 grains of silver
nine-tenths fine, is to-day, in commer
cial value, worth ninety cents. That is
what I said.
C. Asa bullion.
11.1 said distinctly 4124 grains, which
represented a dollar, which not a dollar
now ; but we are talking about making
it a dollar. As it now atanJ# we agree
that in commerce it is worth ninety
cents, or ninety-two cents. Very well.
Now, here is the difference. The Sena
tors who support this bill as it stands,
without amendment, insist that, if sil
ver shall be remonetized and given this
legal-tender power, then the 4124 grain,
which in bullion is worth a dollar
That is your position. Do I not state
it fairly ? Precisely ; and If you will
just wait patiently you will find that I
state everything with perfect fairness.
1 do not believe that the remonetization
of silver M ith unlimited legal-tender
power will make it worth a dollar. If I
believed it I would vote with you. Coin
ing a silver dollar equal to a gold dollar
cannot harm anybody That is what
my friend wants, and wliat we all want.
We will all vote for a silver dollar that
is equal to a gold dollar. What are we
quarreling about, when all agree that
nobody can be harmed by that ?
Why do you say that in your judg
ment the remonetization of silver by
the passage of this bill will make nine
ty-two cents of silver worth a dollar?
I stale your argument fairly. You
say that the demonetization of silver
is the cause of the depreciation of that
money, and this singular logic lias
gone all over the country. You can
II ud it in a thousand newspapers to
day. Every time that we say that
412| grains of silver are not worth a
dollar wo are met with the reply,
“ that is because the Government of
the United States demonetized it; the
United States lias disowned its money
therefore it lias depreciated in value.”
Even the venerable Senator from O
hio uses that argument, and uses it
with a great deal of earnestness. Now
gentlemen, if your premise be true, if
it be true that the simple demonetiza
tion of silver or its being stricken from
the coinage of the United States is the
cause of its present depreciation, then
your conclusion is correct, and its res
toration to the coinage and remoneti
zation would increase its value and
carry it back; because if you remove
the cause you remove the effect. But
in order to removeau effect you must
remove all the cause that produced it.
Do you not perceive that your position
that the demonetization of silver by
the United States is the cause of its
depreciation, is itself an assumption?
You do not prove that you assume it.
The newspapers of the country are
tilled with it and the whole country,
therefore, hold us up as intentionally
keeping silver depreciated by refus
ing to repeal an act which caused sil
ver to be depreciated. You hold the
Government up as responsible for its
depreciation.
Is there any necessity for us to de
ceive ourselves upon the subject ? I
think none in the world. In the first
place it seems to me illogical to say
that the act of 1873 was the cause of
the depreciation in silver as money,
because silver at that time was not
money, it was not in circulation. The
act of 1873 did not destroy silver as a
circulating medium in this country.
Depreciated paper did that work.
Mr. Saulsbury. Will the Senator
from Georgia permit me to ask him a
question just there?
11. Certainly.
S. I ask the Senator whether the
position that he takes, that to remone
tize silver will not appreciate its val
ue, is not itself a mere assumption
and in connection with that I ask him
the question whether before our act
of demonetization there had been a
depreciation in silver bullion.
H. If my friend will just wait h >
will be perfectly astonished to ste how
unnecessary his question is.
S. Answer me.
H What was your first question ?
S. My lirst question was whether
it is not mere assumption;
11. I remember now*. Yes, it is;
but I do not let it rest there as you do.
I intend to prove my assumption and
you do not prove yours. That is tin
difference between us- I admit as far
as I have gone it is a mere assump
tion to say reinonetizatiuu will not re
store its value; but wait and hear my
reason for it.
Wallace. Will the senator permit a
question.
H. Yes sir, if it is necessary I will,
but there are so many uuneceseary
questions put to me that I am almost
afraid to yield.
W. The power given is “to coin
money and regulate the value there
of.” The question I Want to ask the
Senator is whether he will take a piece
of silver of 4121 grains, not coined as
money and regulate its value, or
whether he will coin the money and
regulate the value between the money
silver at.d the money gold.
ll* I will come to my remedies and
tell the Senator when I get to that
point. lam now discussing the ques
tion what produced the depreciation
in silver, and I will be exceedingly
obliged if gentlemen will let me go
on and discuss the question lam dis
cussing.
Then why do you say that the act
of 1873 produced a depreciation in sil- ,
veras money when silver was not in
fact money. How long after its pas
sage before that act ought to have had
such an effect. But. Senators, was the
United States the only country that
demonetized silver? I have collated
the facts on this subject and I invite
the attention of the Senate to them,
the United States struck the Silver
dollar from the coinage as we all know
in 1873. We have heard a great deal
to the effect that Germany also adopt
ed the single gold Standard in 1873.
That is true. Then, further Denmark
Norway and Sweden demonetized sil
ver in 1872-’73 beginning the work in
1872 and completing it in 1873. Hol
land commenced the demonetization
of silver in 1872 and completed its
work in 1875. So here are live coun
tries besides the United States which
between 1872 and 1875 demonetized
silver. That is not all. Fiance, Bel
gium Switzerland. Italy and Greece,
embracing the Latin monetary union
restricted the coinage of silver, and fi
lially suspended that coin in 1874.
They aid not destroy the legal-tender
power of silver already coined. They
did not establish nominally a single
gold straudard, but they stopped the
coinage of silver, just as our act of 1873
did. Here then are ten nations be
sides the United States, 5. reat cominer
cial nations, embracing the greatest
commercial nations of the earth, that
demonetized silver about the same
time tiie united States demonetized
it.
I ask my friends what right have
you to say that the action of the uni
ted States alone out of eleven nations
produced a given result. If all of these
states lmd an agency in producing
this result, I ask you what right you
have to say the reversion of its action
by the United States alone will restore
the result and remedy the evil. You
cannot say that . You cannot say that
result which is produced by the action
of eleven nations will be remedied by
the change in its action o!' one of them
That is unreasonable*
But in my judgement —and I am
giving my opinion and no other mans
—it was not thc’deinonctlzation of sil
ver either by the United States or the
other ten nations that alone produced
the depreciation in silver, 011 the
contrary, it is my opinion that the
wisdom of the statesmen of those
countries discei ned coming events and
they determined for oti -r causes to
demonetize silver, and now to those
causes I invite the attention of the Sen
ate. First, let us look at the produc
tion of silver. 1 wish Senators to di
rect their attention to till - question as
it effects entirely the depreciation of
the metal. In 1801 we are told that
the American product of silver was
$2,000,000; by 1804 it increased to sll,-
000,000, in 1870 it increased to $16,000,-
000; in 1875 it increased to $32,000,000;
and in 1877 it increased to about $40,-
000,000. Mark you. Up to the time
of the depreciation of silver the in
crease in the product of silver since
1801 iu the United States had been
1,500 per cent, by tlie statistics. The
production of the world up to 1801 had
reached $40,000,000 per year. In 1875
it had reached $80,000,000, an increase
of 100 per ceut. That is the increase
of the production, and tiffs wonderful
increase in its production seems to
have culminated to its high point
about the time silver commenced to
depreciate, l>t us look to the de
mand in tiie mean time. T will take
only one cojutry for asp icimen. Dur
ing the four years of the American
war American cotton wa cut off from
Europe and tiie world. India cotton
therefore cmne to a great demand and
rose to a high price and increased large
ly in production. What was the re
sult During the four years of the war
the exportation of silver to India alone
amounted to $67,000,000 per annum.
B. From where?
11. From Fiance ami England.
One year Franco iise f exported £65
000,000. There foie the groat de
mand for silver. It took £67,000,000
on an average dining the four years
of ilie war. During ihe four years
succeeding the war, win :i our south-*
era cotton was coming In k into de
mand thereby lessening the value
aiul product of India cotton, and
therefore lessening the power of
India to take silver, the demand of
India alone fell to £35,000,000 a
year. This demad fell in 18G8,
so Dr. Liuderman tells is, to £8,003-
000; in 1870-’7l, in t\v Ive months
there, it fed to $5,000,000. In the
four years after 1871, including 1875
the average exportation of silver to
India was §10,000,000. So that dur
ing this very period, when silver com
inenced declining, its product had
risen since 1761 1,500 jor cent, in
the United States and luO percent,
in the world, and its demand in one
great silver country alone had de
creased 85 pi r cent! !?o was this
decrease in the demand . ml it's effect
up m silver, that notwithstanding, in
eonsi quenee of the famine the de
mand for India and Cli na great : y
increased again in 1876 it had not
the effect of restoring silver to its
foimer value.
Now, 1 put it to your candor,
when the production of s Ivei had -o
greatly indented, when the demand
for silver had so greatly declined,
both from tiie failure and inability
to get it in the cou titt ies of the east,
and when eleven counti es had dis
carded it as money or stepped its
coinage, why is it, in,the face of these
great facts, that you insist upon say
ing that the depreciation of silver
was caused by the d< mnuciization act
of 1873. Is it fair to make that
statement? Eleven nat oils durihg
this very period havedi-carded si.ver
from their coinage- Fifteen hundred
per cent, increase in its production
by the United States, 100 per emit,
increase in the product on in the
world, and 85 per cent and crease in >ts
demand. Yet gentlemen tell me
there is one cause for tlm deprecia
tion of si.ver. Looking ;.L tois qu s
t.ion fairiy with a pemeetly impaTtal
mind, I must come to the conclusi n
taut the cause of the deprec ation in
sdver is to be iou ;d nn m the act
of any one nation, but in the acts of
eleven nations and in the fact of its
greatly increased production aud the
great decline in the demand for it
1 believe I am reasonable in the state
ment, and if I come to that conclu
sion are you justilied or is any one
justified in saying tiiat but one part
of the cause produced the hole ef
fect.
Air. Bailey. Will the Senator per
mit me to ask him a question just in
that connection?
Mr. H. Yes, sir.
Mr. B. I understand the Senator
to say that the position taken by
the advocates of tiie silver bid on the
Hour of the Senate lias been that the
whole cause of the depreciated value
of silver is to he found in its demon
etization by the Government of the
United States, Do 1 understand him
to state that.
Mr. 11. I have understood that to
be the position of half a dozen Sena
tors on this floor, and 1 have seen it
in a thousand newspapers almost.
Mr. B. I speak of the discussion on
the fl'ior of the Senate.
Air- H. Oh, Ido not say that all
of you have said it.
Air. B. I do not say so.
Mr. 11. Then you admit what I say,
that the demonetization of silver by
the United States did not alone pro
duce its depreciation. I put you on
one liurn of the dilemma or the other.
Do you admit that the demonetiza
tion by the United States alone did
not produce tiie depreciation of sil
ver? If you admit that, then I a.-k
what right have you to say that the
p suige of this bill remonetizing sil
ver wiil cure the depreciation and re
store it to its former value? You
have no right to say it. You must
find oat the cause of the depreciation
and remove the whole cause if you
would remove t e whole effect. I
will state fairly that I believe the re
monetization of silver by the United
States will have some effect in restor
ing its value. Ido not know how
much, and therefore, as you will find
directly, I am unwilling to adopt a
measuie which proposes simply to in
crease the weight of silver, because
we cannot tell now exactly how much
effect remonetization will have in re
storing its value. But that it will
have the full effect of restoring its
value I cannot believe. It may have
a temporary effect, more apparent
than real, and not by any means
permanent. It may seemingly restore
it for a little while, but it ;annot
last.
Then I put this to Senators: As
you do not wish to coin a depreciated
money, as all the causes which we
may reasonably say have united in
producing its depreciation cannot be
removed by 11s, as we can only re
move one, as we will in all probabili
ty fail to restore by the act of one
nation the value of silver in equal
value to that of the gold dallar, you
ste the hazard at once of passing this
bi:l without any* limitation upon it.
If you do produce a dollar tint is
not worth a gold dollar yon see you
der mge the currency, you confuse
aii values, and you inflict very gieat
mischief upon the country. You
admit that you ought to avoid that.
Will it not be b tier, then, instead of
risking this terrible evil upon the
country at tins particular juncture to
avoid it if we po.-sibly can?
Mr. Muxey. Will the Senator per
mit me to ask him a question?
11. YtS, sir.
M. If silver wi re at premium of 3
p r ei nt. in 1873 when it was demons
et zed, is it necessary to bring it
back to that late in order to justify
the i eeoinage of it?
il, 1 uust sjy to my friend from
i e\a- that that is a vety unnecessary
question. 1 have said fifty times in
la .gunge as strong as 1 can use, that
1 would have a silver dollar equal to
the gold dollar.
ol- It wifi bo more than equal
when remonetized.
11. 1 do not want either metal of
superior value to the other. All 1
want is equality. That is the con
dition of the companionship of the
two metals, as I said to the Senator
from Maine, llow may you avoid
these disastrous consequences and vet
give the people a silver dollar? You
can doit in my opinion in either one
of three ways. You can do it by in
creasing the weight. I prefer not to
adopt that method. I say to my
eloquent friend from Connecticut
(Mr. Eaton) and the Senator from
Michigan(Mi. Christiancy) and the
Senator from Maine,(Mr. Blane,)
who have already offered amendments
to increase the weight of the silver
dollar, that is a wise measure, it is a
proper remedy, but in iny opinion it
is not the b.st, and 1 give this reason
for it, that you cannot tell now at
what weight you should fix the silver
dollar- If you were to fix a weight
to morrow that would be equal to
gold, the next day it might not be
and the evil would occur. We must
adopt some system, if we can, bv
which wc can keep the silver equal to
the gold dollar in purehrsing power
and in commercial value.
I'he whole difficulty of the double
standard springs up when you under
take to equalize the dollar by weight.
1 hat is a very gieat difliculiy in the
pcsent condition of the country, when
;i majority iff the comnietcial nations
of the earth are discarding the double
standard. lam not going into the
question of the sing e and double
Siandard. I only say that out of
thirty-three nations, not counting
the United States, fifteen have ah
ready adopted the single silver stand
ard, and only eight have the double
standard of gold an” silver; so that
the tendency of the world is cleaily
to establish the tingle gold stand
ard. At this time 1 do not propose to
di cu.-s the single gold standard for
tins country, but for the leason
given I prefer not to increase the
weight of the silver dollar. Then I
p: opose to retain grains of sil
ver n.netenths fine as the silver dollar,
llow then will you prevent its de
preciation? One way is to limit the
coinage, and 1 at is not the best way, j
but that is a way, and y< u may have
to come to that. Whenever you j
limit the supply of an article you
necessarily increase the value of that |
article- 11 you will 1-nut the coinage (
of your silver when you
per limitation upon LJ* 1 Pn
flllthe „nturd P
then of course you t m
value. The fact stated ,A
td from Ohio thatthe ra, n tlie C
is only 151 of silver u l
yet it is equal to gold in
as money is true, but
France absolutely prohi bi ea K
crease of those dollars the iff
A. How many hud they’
I • 1 do not remember 1 m
you know. 1
A. Between S3OO o<i,iaa,
$400,000,000. *
and Very well; Still France
ped the coinage and she k e ,
at par She closes down £
and why does she keen ? N
closed? Because, as my
admit, the French peonletT
if they do what you
this bill, reopen the mi niß !° ,J b
the uulumtcd fiee coinage If
her silver would godowni n >
four hours am] it would an
other me: ai, gold, away
same thing. Whei*&’‘S
ate one metal you drive the o P 4
way. That is an
France stopped the coinage T
to prevent that effect and J ' 1
gold, ** “to
1 am willing for you to have b3.
lam a silve- man. I pr f:
and now against the coLm. 91
peated arguments on this L/V*
thote of us who cannot sun, J 11
bill want to destroy all
the country. We want to r r 4
silver so as to keep it equal H
and thus keep both m the jj l
Tnat is all I want, and then
have as muehol it as yon
example of I ranee proves to m u
it is possiole to have silver
large amount of silver even *?
than 412 T grains less than y"
audit willjjkeep at par, but it J.
by a limitation upon the coij
1 here can be no other reason U
Here you propose an unlimited •
coinage.
A* No.
H. You do not. I mean the-'
vocates of the bill as it camelry
House.
But I believe the most effectives
and the permanent way to keep
purchasing power of the silver doll,
equal to the purchasing power of u.
gold dollar is to pre-cube for tilt.'
an appropriate and fitting place inlh
field of currency which will tikei;
out of competition with gold, p"
mean to make it alone in this cot;:*
a subsidiary coin. lam willing 3
compromise and get togetherV:
have accord on this subject, and r j
silver more than a subsidiary c...
but I would limit its legal-ten,;
power. Why? For the very reasai
the example you have before vet
The Senator from Alissouri hastlron
it in our faces that two of the prats;
half dollars are of less weight :x
41:H grams and yet they pa.-saip.
Why? Is it because tne value afife
silver in them is equal to 25,6 gna
of gold? No, sir; but because of 1
limit in legal-tender power and h
cause theie is no other currency Til
which it. comes in competition, ft
the very same reason yiur n. ?
coins pass at par. ThenicklefKs
at par and so the copper cent p *
They are not equal in comnena
value to gold or silver, butwkp'
that we all take a copper cents
the nickle threo-cent piece and a
nickle five-cent piece? Becaiue -
perlorm ‘lie function of change.*
function of a money which there s',
otlicr money to perform.
Soil) England. Look at he:u
England you say has demene
silver; hut yet England tuaiesc
ed silver a subsidirary coin My
gives the silver money higher ie
tender power than wc hue;?
with our fractional currency. -
makes il a legal tender foraik>u:i
Wliat is the result? England
dilates from eighty toab-- :
millions of silver and it is not r.
in value to our silver dollar. |
buys the silver bullion at 53 P- l
coins it :.nd puts it in circulate I
66, thereby making 13 pence. l
per cent, nearly.
llow dees she doit? By -'!"]
limiting the legal-teuder p r
simply giving silver a lieiuif v
it does not come into cam!/-:'!
with gold. What should ' I
here? Limit the legal-tea- i I
er of the silver dollar, auil|" v ' . I
pie silver to supply the I
people. lam wilting '0 a *‘:; / I
any reasonable amount. •P 1 [
opinion is tnat if yvu mak ■ I
ver dollar a legal tender - 01 / ' n and 1
people will have it for ail tuff a |
the* need or desire, and i* / - J
just as much into circuiatu
you were to make it an ;n : vV |
gal tender, and it wiU |
liable to tire people at - ■ ■ f
drive out the gold fr ?ult “ n
or from the country. , sjlverl
In that event, 1
dollar of 4121 gr r ainsv.ov\W ( ,|
much purchasing i x,wel •\\ 1
dollar/ That is mV f m(^ id ,J
not do if if we van t u - nd v ; |
confuMon and l pcol .le \
gratify the peop.e- 1 C j o | la r>|
maud of you ttic
they do not demand o . , ■
th a,all *<-&•
from the country. J- 0 .* (! c : ■
you in what way tog 1 ' 1 : 5
silver dollar; they leave y , I
wisdom, and they ex P/. I
it in a manner that v •* oi
that will secure eqalnj ■
silver dollar and the gold do& 1
Senator l't om Ohio said, ‘ '<jl
1 - iVkAlli > ... ■
UlltUl aim o . n .11(1/ ■
Senator fiorn Ohio sunk ‘ /jl
said, that the silver ] 1
money of the common ff-'T 1
is true, and will the e,ia
hazard of throwing out te y.,
try a money that is to ie
the common people "diu.
less valuable than the
used by the rich people- O
he justice to the iabortuS y y
that be justice to the p oul J, )lie a--
gentlemen, when you g°
tell ttie people that you /pep
a bill which gives them/* -
lar, and they find out/ 1 /
given them a silver della 1 1
ue than the gold dclDb v / u
want to know why you
tCoaUuuect oa inirJ
