The Felding Star. Published Daily. WEDNESDAY, AUGUST 16, 1893. THE SILVER QUESTION.

Feilding Star, Volume XV, Issue 40, 16 August 1893, Page 2

The Felding Star. Published Daily. WEDNESDAY, AUGUST 16, 1893. THE SILVER QUESTION.

The difficulty which now exists in connection with the silver market is entirely owing to indiscreet legislative interference with tho natural commercial law of supply and demand. Sometime before 1886, the agitation in England on tbo subject of bimetallism was very considerable*, and tbo Government was urged to consult the chief commercial nations as to their readiness to join in a conference for the re-establishment of an international bi-motallic system. In consequence of this pressure, an International Monetary Congress was held in Paris in 1889. The result was — a blank report. In the summer of 1890 the United States Congress passed an Act empowering the Treasury to increase its purchases of silver to 4,500,000 ounces of silver per month, instead of a minimum of 4,000,000 dollars worth as uuder the Bland Act. The payments undor tho new Act wero made in silver certificates which were legal tenders for nil debts. The highest prico tho Treasury was allowod to give was 59d por ounce. Tho result of this silly legislation was, as a mattor of courso, a sharp rise in silver ; ia a fow months it bounded up from 44d to 55d per ounco. Ultimately, through the increased output from tho miues, especially iu Australia, combined with the sudden appoarauce of old hoards of tho metal, tho value of stiver fell even more rapidly than it had risen, aud reachod a lower point than it had over before touched. Yet this point was artificially maintained by the American Treasury purchases. The gravity of the situation became apparent when it was shown that to keep the vast mass of silver certificates in circulation, increasing as they did by 4,500,000 dollars every month, the Treasury had only 15,000,000 dollars in gold available. Undor these circumstances it appeared inevitable that the purchases under the Act must soon coase. Iu tho moantime the English Government had much pressure brought to bear on them from India, where tho low rate of the rupee was causing great financial embarrassment. An Indian Curroucy Association was formed; which urged that the time had come to fix a gold standard for India, at tho same time retaining a silver currency of unUmit&J legal t«.«<l« r . MonoTrbilo tho rupee had fallon to Is 2-Jd, and the crisis became acute. The English Government iu acknowledging a memorial from India on tho curroncy question, stated that tho assumption of tho same standard of valuo by England and India would facilitate international trade, atimuiute production in both countries, and give India a great advantage as compared with China in tho production of tea and other commodities. Iu America a Free Silver Coinage Bill was passed by the Senate. It repealed the bullion purchase law of 1890, instructed tho Secretary of the Treasury to coin all tho bullion iu tho Treasury that had beou purchased with silver certificates, aud authorised any owuor of silver bullion to havo it coined in any mint, into standard silver dollars, which should bo legal tender. This Bill was, very properly thrown out by Congress. Our readers are aware by the telegrams we publish daily on tho subject, that the difficulty is still as far off a settlement as it was boforo tho first conforenco. Now, had tho American legislature not boon nllowed to become a tool in tho hands of speculators, the trouble could never have arisen. Suppose for example tho Sonato and Congress had gone a little farther and passed an enactment creating a standard value for wheat, wool, iron, and coal, the Treasury to issue certificates which were legal tenders for each under its separate heading, the result would have been the saute iu each case— a

rush from every country in the world, which was able to export these articles, to catch such a splendid market. The consequence to America would — in a very few years, or even months — be , national bankruptcy. Of course, a ! certain restraint might be put on the ! traffic by a protective duty, but it would be a new thing in commercial 1 ethics to put a prohibitive tax on a | legal tender seeking to enter the coun- , try. The absurdity of this proves the j folly of the American silver laws.