PHILOSOPHICAL SOCIETY OF WASHINGTON. 93 



the profits of it, the whole financial fabric of the country would 

 within a year or so drop from a gold to a silver basis mvolving 

 alike all public and private credits. Obligations contracted m 

 gold or equivalent greenbacks would be corapulsonly paid m 

 silver inflicting great damage and loss upon everybody, espe- 

 cially upon the poorer and less fortunate classes, and openuig 

 chances to shrewd speculators to realize handsome profits out ot 

 the disturbances in nominal values. The men of capital and the 

 banks would be able to take care of themselves in the main 

 though sure to suffer some loss. It is their business to look out 

 for such disturbances, and being duly warned, would be we 1 

 advised as to the means of breaking the force of the blow, though 

 not avoiding it altogether. But for poor people who earn daily 

 wa'^es, for the dependent classes in general, and for all people who 

 do ^not know how or who cannot provide against such changes, 

 there would be no escape. Fortunately the proposition was 

 modified by limiting the coinage to not less than tv/o millions 

 nor more than four millions per month, and closing the mints to 

 coinage on private account. This was a saving clause of great 

 value. It had the efi"ect of postponing the evil day, and it was 

 hoped that before the egg would have time to hatch people would 

 take a sober second tho'ught and reverse the plan. 



As the Bland bill finallv passed, the effects of its provisions 

 would require time to develop themselves in consequence of these 

 limitations. Before it can have any serious effect two conditions 

 must be fulfilled. ^ 4. e 



1st. A quantity of silver must be coined large enough to torm 

 an important factor in the total volume of currency. 



2d It must be forced into general circulation. _ 



The quantity of silver required to make the measure effective 

 is unknown. Much must depend upon the general state of trade 

 and the demand for money, especially metallic money. At one 

 period seventy - five or even fifty millions might make it of 

 serious account, at another two hundred millions might be re- 

 quired. In general from a hundred to one hundred and htty 

 millions might be on the average sufficient to render it a potent 



factor. ^. ,, ., 



In order that the Bland bill may become operative the silver 

 must be forced into circulation. At present only a slightand 

 inefficient pressure is exerted in that direction, and the circu- 

 lation is merely nominal. Small amounts are paid out, but they 

 come back by the shortest route to the treasury. The explana- 

 tion is very instructive and curious. It is customary to state a 

 certain law of money in the well-worn adage that "an inferior 

 currency will if permitted expel a superior one from circulation." 

 This is because persons prefer to pay their debts in the cheaper 

 currency, provided they are perfectly free to do so. The state- 

 ment presupposes that it is optional with the debtor which of the 

 two he will pay, and not with the creditor which of the two he 



