As was expected from its composition, the Coinage Committee of the United States House of Representatives live reported in favour of Mr. Bland's Bill for the free coinage of silver. In the eyes of the Comunittee, it would appear that one of the recommendations of the Bill is that it is a measure of repudiation. Both they wud Mr, Bland consider that its special merit is, to use the words of its author, "that it contemplates the conversion of all our silver money, silver certificates, and Treasury notes issued in bullion, and gold certificates issued in gold, into coin or notes redeemable in chin, thus converting our paper into hi-metallic paper instead of keeping up the distinction between gold and silver in our paper issues." Now, to take merely instance, not speak of the Government's own' not the United States Treasury have de of gold to the amount of upwards of £36,000,000, against which they have inated certificates, which entitle the holder to demand back the gold if he so desires, These certificates ure held by banks, who in their turn have undertaken to pay in gold if called upon. All these engagements, however, Mr. Bland seeks to override. Having undertaken to pay te Treasury und priv powered to liquidate their debts in silver coin, which is at present worth intrinsically 30 per cent. less than gold. It may be argued, of course, that under free coinage silver will rise to a parity with gold. But can hypothesis of that kind, even if it were sound instead of being demonstrably fallacious, be held to justify breach of contract It ly not difficult to understand why repudiation should be the corner-stone ut the measure, fur without it the hi-metallism which the advocates of free coinage seek to establish would be an impossibility. This point was very strongly insisted upon by Mir. Leech, the Director of the Mat, in his evidence before the Coinage Committee. If the legal tender notes issued by the Government are to remain payable in gold, thea the Treasury would very speedily be drained of the yellow metal, All surplus stocks of silver would be attracted tu the States, and we would be compelled to pay the shippers gold, because they could get legal tender utes, which are practically interconvertible into gold." his view of the matter the Committee, judying from the brief summary of their report that has been telegraphed here, seek to controvert in a half-hearted fashion. Estimating the amount of gold coin in the country at £120,000,000, they contend that to take that amount out of the circulation "immediately and before the vacuum could be supplied by free coinage would necessarily lower prices to such an extent that gold would buy more commodities than now and consequently gold invest ments here would be more remunerative than now. This fact alone would cause gold to be imported instead of ex-orted." But not only is this argument fallacious—it entirely begs the question. No one supposes that the passing of a free coinage Bill would result in the immediate displacement of all the gold in the country. The process would be a protracted one, silver gradually taking the place of gold. It would not be case of filling a vacuum, but of the gradual substitution of silver for gold, until in the end the country was duced, not to a hi-metallic, but a pure diatiow, or, in other Words, a refusal to basis. Obviously, therefore, rej fulfil contracts made to pay-in gold ig the indispensable preliminary to any attempts to establish a hi-metallic system in the States, and of repudiation the advocates of free coinage do not appear to be in the Toast ashamed.
Tu arguing that a fallin the price of eommodities in the States, brought about by a! toe rapid expulsion of gold, would in mediately work its own cure by attracting fresh supplies of the metal, the Cvinage Committee have overlooked the fact that, under their scheme, silver would have as great purchasing power in the States as gold, while elsewhere its purchasing power would be very much less. A parity in the purchasing power of the two metals in the States, whatever may be the ratio between them elsewhere, is indeed the essence of their scheme. And thut being 60, surely it is obvious that under the conditions they postulate, the metal that would flow in to take advantage of any exceptional oppor tunities for investment would be silver and not gold. Further, in attributing as they do the present low price of cotton to the cheapness of silver, they are seeking to impose upon the credulity of the Southern farmers. They maintain that the fall in Iver enables the Indian cotton growers to accept smaller their produce, and in that way he price of the American staple. As a matter of however, the competition here of ian with American cotton is of the test, We consume on an average, from twelve to thirteen times as much Auerican as Indian cotton each year. Our consumption of the Indian staple, moreover, tende rather to diminish thaw to increase, and at present, so far frum the low price of American cotton being due to exceptional competition on the part of India, stimulated by the cheapness of silver, the fact that this year's Indian crop threatens to be a poor one has been one of the steadying and sustaining influences in the market.
That the United States will act upon the recommendation of the Coinage Committee and pass a free coinage Act is the highest degree improbable, and even if it were passed, President Harrison is pledged to veto it. The constant xgitati the question, however, is proving injurious to the States. It frightens away capital, checks enterprise, and paralyses i And now that the Silver party have openly adopted the repudiation of guld. contracts as the chief plank in their platform, its deadening and depressing influence may be expected to become still more pronounced.
Text read from the printed page and cleaned; old type leaves the occasional error.