PHILOSOPHICAL SOCIETY OP WASHINGTON. 95 



be about as politic and rational as to attempt to persuade or com- 

 pel a commission merchant to mix turnips and potatoes and sell 

 the whole as potatoes. It was the Government which origkiated 

 and sustains the discrimination, and not the banks. It forcibly 

 issued paper redeemable in silver dollars only ; it issued also 

 paper redeemable in gold dollars; the people feel if they do not 

 see the difference ; they act accordingly, and the banks are com- 

 pelled to follow. 



To make the Bland bill operative, then, it is necessary for the 

 Government to take decisive measures to force silver into general 

 circulation. But when such decisive measures are taken, certain 

 consequences must follow, which we must endeavor to forecast. 

 These measures must obviously restrict the right of payees except 

 the Treasury to demand gold at face value, and sustain the right 

 of payers to tender silver to everybody except to the government. 

 But the instant any such action is taken the consequences are 

 obvious — gold will begin to command a premium, and the moment 

 it commands a premium, however small, it ceases to be a stand- 

 ard or common denominator of value. With the lapse of time 

 the premium of gold will thereafter increase, until it has become 

 about equal to the difference between the bullion values of gold 

 and silver in the markets. Thus the enforcement of the circula- 

 tion of silver will gradually reduce the financial fabric of the 

 country to the standard of the silver dollar. 



But whether the silver is speedily forced into circulation or 

 not, the continued operation of the Bland bill as now adminis- 

 tered will have the tendency to bring our money down to the 

 silver denominator in the course of a few years. True, it may fail 

 to do so and we may escape, but there is danger of it sufficiently 

 serious to demand earnest attention. At pi'esent there is a golden 

 tide setting from Europe into this country. The bad crops, the 

 depression of industry in Europe, and its revival in America with 

 splendid harvests, have caused a heavy balance of trade in our 

 favor. That balance is paid in gold because there is a demand 

 for it here and because Europe has nothing better to send. But 

 a favorable balance of trade is only an ephemeral state of affairs. 

 Just as surely as the pendulum now swinging to the right will 

 in a little time swing back to the left, just so surely will the 

 balance of trade turn in the opposite direction and the golden 

 stream will flow back to Europe. In the mean time the Treas- 

 ury is rapidly piling up useless silver in its vaults. Every silver 

 dollar put into its strong box represents an equal bullion value 

 of gold or greenbacks taken out of it. When the balance of trade 

 turns, gold will be wanted for export. No silver, be it observed, 

 but only gold. Debts are not paid with silver in Europe. Green- 

 backs and gold certificates Avill then be presented at the Treasury 

 (or bank notes at the banks, which in the end amounts to the 

 same thing), for redemption in coin ; and gold will be demanded. 

 If the Treasury insists on paying greenbacks in silver, the crisis 



