caused the depreciation was the prospect of an indefinite increase of the greenback promises to pay and the uncertainty as to the ability of the Government to meet its obligations. What caused the subsequent rise of the greenbacks to par with gold was the limiting of the greenback issues to a manageable quantity, the preparation made by the Government for redemption and the returned public confidence that the Government was able as well as willing to redeem its promises.
What is now the status of the silver dollar in this respect? The greenback dollar is an evidence of indebtedness on the part of the Government to the amount of just $1.00—the bit of paper out of which the greenback is made being worth nothing. Under the pledge of the Government to keep the silver dollar to all intents and purposes on a parity with the gold dollar, the silver dollar is virtually an evidence of indebtedness on the part of the United States to an amount equal to the difference between the mercantile value of the metal in the silver dollar and in the gold dollar, that is to say, to the amount of 50 cents if the metal in the silver dollar can be bought at 50 cents. Notwithstanding this difference, the silver dollar will, like the greenback, pass in mercantile transactions as the equivalent of the gold dollar as long as there is public confidence in the ability and willingness of the Government to fulfil its pledge to “maintain the two metals at a parity.” To fulfil this pledge it is necessary so to limit the circulation of silver dollars and of paper representing silver, for which the Government is responsible, and to keep so large a reserve of gold on hand, as to leave no reasonable doubt of the ability of the Government to meet its obligations.
We know from experience that when, as in 1893, such doubt arose, gold was withdrawn from the Treasury in large quantities, and the gold dollar was on the point
