The advocate and Topeka tribune. [volume], October 19, 1892, Page 2, Image 2

About The advocate and Topeka tribune. [volume] (Topeka, Kan.) 1892-1894

Image provided by: Kansas State Historical Society; Topeka, KS

                
2
THIS ADVOCATE,
MOffETABT 00MMIS3IUN.
Beport of the United. States Monetary
Commission, Appointed by Act of Con
grew August 15, 1878.
NO. XVIII.
Only a small amount of silver now re
maining in Europe.
It la objected by many that the re
monetlzatlon of silver la the United
States would Induce a further and more
general demonetization of that metal In
Europe, and would make this country a
reservoir Into which would flow a swollen
stream of cheap and cheapening silver.
As It la not alleged that we are exposed
to a dangerous inflow of silver from any
other quarter, it may be useful to inquire
what quantity In coin and bars there
really Is in the different countries of
Europe at this time, and how much of
that quantity la available for sale after
their demands for consumption In the
arta, and to keep their stocks of sub
sldiary coins good against abrasion and
loss, have been supplied, and how much
they will need annually in the future for
these last purposes.
Italy, Austria and Russia, having an
actual currency of legal tender paper,
may be left out of this account. They
have no silver to dispose of.
In respect to Italy, It is stated In the
report (187G) of the British silver com
mission: Italy has been gradually denuded of her diver
currency. Hlnce 1865 large amounts have been
exported; her forced paper currency hai appar
ently expelled the whole of the metallic cur
rency, of which the silver coins amounted at the
beginning or 1800 to about i7.ooo,ooo.
In the tabulation of the same report of
the quantities of silver thrown on the
market during the four years from 1872
to 1875, both inclusive, Italy la put down
as furnishing eight millions sterling, or
as much as was furnished during the
same time by Germany and the Scandi
navian states combined. An Italian
finance minister has estimated the Italian
export of both the metals since 1860 at
$200,000,000.
The facts given in the report made De
cember 20, 1876, by Mr. Compton, of the
British embassy at Rome, seem to justify
his statement that "since 1866, wien pa
per money was introduced in place of
coin, nearly $.10,000,000 worth of silver
has been exported." This Is nearly twice
the estimate of the British sliver com
mission. If it la true that $200,000,000 of
both the metals have been exported
since I860, the estimate of Mr. Compton
Is more probably correct, as the propor
tion of silver to gold was alwava very
large in the Italian circulation so long as
it whs metallic or convertible. Of the
coins Issued prior to 1862, those with
drawn have been In the proportion of
$92,635,000 of silver to $5,415,000 of gold.
In the new coinage since 1862, and down
to 1876, the sliver was 17,505,481 and
the gold 9,446,688. In the public treaa
ury and In all the banks in October last
Mr. Compton states the entire metallic
money at only 7,000,000, divided about
equally between gold and silver. It is
fully shown by all these statements that
within eleven years Italy has thrown an
Immense amount of silver, undoubtedly
approximating $150,000,000, on the mar
kets, and that It can do nothing further
in that direction.
The portentous political aspects In
Europe do not justify the expectation of
an early resumption of coin payments
by either Russia or Austria. The paper
rouble of Russia, which dates with the
Empress Catherine, has had the varying
fortunes of the wars and political events
of a century, alternately appreciating and
depreciating, occasionally subjected to
the process of scaling or partial repudia-
tion, and during one brief period, from
1839 to 1857. redeemed In coin. If the
great struggle threatened with Turkey to $85,000,000, but the excess of such
takes place, monetary reforms will yield
as always, to more urgent national nec
essities. Of Austria It is said that an an
nual treasury deficit has been chronic
since 1789, and the actual needs of mili
tary preparation and observation justify
no present hope of an Improved condi
tion.
Great Britain may be left out of this
account, having demonetized silver two
generations ago.
Germany must be included In the ac
count, as the demonetization of silver
there Is not yet an accomplished fact.
The estimates of the silver still to be
called In and sold by that country are
widely variant
The known facta in the case are: the
total amount of silver colna which had
been struck down to the date when de
monetization was determined upon, the
amount taken In by the government to
February 28, 1877, the amount sold by
the government to September 30, 1870,
and the amount used to February 28,
1877, In the manufacture of the new sub
sidiary coinage. What Is unknown, and
In respect to which there is an extreme
variance of opinion, Is the proportion of
the coins heretofore struck which has
been lost, melted, or exported. The
figures are:
Total amount of the old silver coinage
WUUfiU.UUU
Withdrawn to February 28,1877 182,561,217
Used In subsidiary coinage to Febru-
ary28, 1877 97,150,G35
Actually sold to September 30. 187C. . . 39.847.coo
Converted Into bars for sale, but not
sold, September so, iktg a.s&o.L-uu
If the sum of 10 marks, equaling
about $2 50 per head, which in the pro
visional per capita limit of the subsidiary
coinage, be made permanent, there will
be needed to carry the coinage up to that
limit, about $8,000,000. If the limit be
increased to 15 marks, about $60,000,000
Instead of $8,000,000 will be required.
The exports of silver from Germany to
England were much greater In the latter
than in the earlier part of 1876. During
January and February of this year they
were 1,317,880 or $6,391,718. During
the same months of last year they were
only 196,738 or $954,180. Upon the
whole, It may be concluded that nearly
the entire difference, which Is $85,410,
582, between the amount withdrawn and
the amount used in subsidiary coinage
to the end of February, 1877, has been
sold.
Of the old silver coinage, $50,000,000
were In florins of gulden currency, all
Issued since 1837. The remainder con
sisted of the thaler coinages, some of
them dating back to 1750. The gulden
currency haa been demonetized, and only
68 per cent of It was presented within
the time limited for redemption. It Is
argued that the proportion of loss must
be much greater in the thaler coinages
which have been subjected so much
longer to the various causes of loss. The
probable proportion of the loss of those
coinages ia fixed by some authorities as
high aa three-fifths, but against this view
It Is urged that the gulden currency was
better adapted to export and better
adapted to melting down, because con
talnlng more gold. The controversy will
be settled when the coinage la all called
in, and not before. The British silver
commission, after groping about as best
they could where so much was uncertain
and obscure, conclude that the German
government might at the date of their
report, July 5, 1S7C, still have had from
$10,000,000 to $100,000,000 of silver to
sell. The latter evidence seems to point
rather towards the higher than the lower
estimate. The computation of the British
commission included only the sales of
$30,000,000 then reported and known.
The sales to this time amount probably
sales above $30,000,000 Is certainly more
than $40,000,000, the minimum estimate
of the amount remaining at the date of
the British report. Since November last
all the old sliver coins have been de
monetized, except the thaler piece and
the sixth of a thaler piece, but the cur
rent reports are that the amount of the
outstanding thaler pieces la still consider
able. The result will be largely affected by
the conclusion finally reached as to the
amount required for subsidiary coinage.
The executive government has proposed
to enlarge it one half, or to 25 marks per
capita, but the proposition lies over for
the present, some legislative opposition
having manifested itself. If carried, the
enlargement will require about $52,000,
000 in silver.
The London Economist of February 3,
1877, states that the German coinage pro
gram for the present year is to complete
the subsidiary coinage up to the present
legal limit, which will call for $8,000,000
in silver, and to coin 40,000 pounds in
weight of gold (about $12,125,000) for the
account of the government The mints
are always open, of course, for such gold
coinage aa Individuals may require. If
this is really the present program of the
German authorities, it implies either
that they are not inclined to press the
withdrawal of silver to an immediate
conclusion, or that the quantity still to
be withdrawn Is not large.
In the appendix (page 1) to the report
of the British commission la a careful
estimate, which puts the amount of sub
sidiary silver in Great Britian, Decem
ber 1, 1872, at 19,536,000. Taking the
population of Great Britain at 32,000,000
and the English shilling as the equiva
lent of the German mark, It would be
about 12 marks per capita of the popula
tion.
The British commission say:
It seems certain that more subsidiary coinage
will be used In Germany than in England, owing
to the smaller use of checks, and to the habit of
dally payment for all family expenses, In the
place of the English system of weekly or monthly
bills.
It seems probable, therefore, that the
increase of the German subsidiary coin
age of 15 marks per capita will finally be
carried, and that even a greater Increase
may be fouLd necessary.
The subsidiary coinage of France is
limited to 6 francs, or about 4 marks,
per capita of the population. A much
greater amount per capita would doubt
less be required were It not for the fact
that the necessity for it is lessened by
the existence of the full tender silver 5
franc piece, just as it la lessened In this
country by the $1 and $2 legal tender
and bank notes. But If the full tender
5 franc pieces were called in, as they
would be should silver be demonetized,
France would require at least as much
subsidiary coin, per capita of the popula
tion, aa Germany.
In the event of a remonetlzatlon of sil
ver in the United States, and of its gen
eral demonetization in Europe, this
country could not be flooded with silver
from Italy, Austria or Russia, which have
none to dispose of, nor from Great Brit
ain, which haa none except what is fixed
in subsidiary coins, nor from Germany
beyond the small amount not yet with
drawn from its circulatton. It is France
which haa nearly all the silver which Is
left In Europe, liable to be thrown on the
markets of the world. The amount of
this French stock, disposable In the
event of demonetization, la as variously
estimated as the amount of the German
stock. The total number of 5 franc
pieces coined, from the commencement
of the coinage in 1795 to its suspension
in 1876, was 1,008,159,946, amounting In
value to $947,500,000. The 5 frano piece
is the only full tender silver coin In cir
culation In France. The silver coins
under that denomination are below the
French standard of fineness, and are
tender for only small sums. The British
silver commission print a paper, stated
by the chairman to have been furnished
by "a high authority in France," whose
name, however, Is not given, In which
the amount of full legal tender silver in
France Is estimated at 2.200,000,000 francs,
or $413,500,000. The bases of this esti
mate are, that in 1863 the authorities
generally concurred in estimating it at
1,500,000,000 francs, to which had been
added 500,000,000 by subsequent coinage
at the French mint, and 2CO.OCO.000 by
the Importation of the 5 frano pieces of
the other states of the Latin Union. Be
tween 1857 and 1868 there was no silver
coined at the French mints, except de
based pieces for subsidiary purposes.
M. Cernuschi gives it aa the general
judgment of French authorities that the
total metallic money of France, gold and
silver, is $1,000,000,000. The proportion
of gold to silver in the reserves of the
bank cf France ia as five to two, but
may be less outside of that Institution.
Paul Leroy Beaulleu (Journal des De
bats, March 3, 1876), estimates the whole
quantity of silver remaining at only
1,200,000,000 franca, one-half of which is
in the bank of France. Victor Bonnet
makes estimates equally low. Ernest
Seyd combats these estimates aa being
too low, and as being made by advocates
of the gold standard for the pnrpose of
underrating the difficulties cf demon
etizing silver, but he does not himself
reckon the quantity at above 70,COO,000
sterling, or $350,000,000.
The proportion of silver in the total
amount cf specie paid to and deposited
In the bank of France is diminishing.
Thla fact la considered by French author
ities as indicating that there Is no ple
thora or excess of silver in the circula
tion. Upon the whole, we may take $413,
500,000 as a maximum estimate of the
full tender Bllver in France. It ia prob
ably less. Whatever the amount may be,
400,000,000 francs, or $75,000,000 would
be absorbed In the event of the demon
etization of silver in such an addition to
the subsidiary coinage aa would carry it
up to 20 francs per capita, or about the
equivalent of 15 marka per capita in Ger
many. In respect to the Scandinavian states
our minister to Denmark (letter of No
vember 8, 1870, to Secretary Fish) says
the demonetization of silver was com
pleted October 1, 1876, and that the old
silver coins had then entirely disap
peared. The same thing is doubtless
true of Norway and Sweden, as those
countries conducted their movement
toward a gold standard In concert with
Denmark, and pursuant to treaty arrange
ments. In respect of Denmark, full ac
counts have been published of the silver
withdrawn, of the amount sold, and of
the amount reminted in subsidiary coins.
The se accounts are as follows:
Withdrawn $il,307,5O0
Sold 6,882,150
Remitted 4,615,360
The annual consumption of silver in
Europe would not be much diminished
by its universal demonetization there.
Its consumption in plate and In the arts
would not be affected at all. Its con
sumption by the loss and abrasion of
coins would be nearly if not quite aa
great as ever. Silver would still be the
material of the coins used In retail trans
actions and by the masses of the people,
and it ia in colna so used that loss and
abrasion chit fly occur. There would be
less silver In the reserves of banks and
public treasuries, but in such reserves
The returns of British Imports and ex-