The Sun

If the Gold Were Driven Out.
To THE EDITOR OF THE SUN-Sir: I have not seen the statement made in your paper of a fact that, it seems to me, should have very great weight in connection with the money question.
The avowed object of the followers of silver is to increase the circulating medium of the country. It has been frequently stated that this will drive all the gold from the country and reduce the circulating medium by the amount of gold now in circulation. In making this statement it seems to me that enough emphasis has not been laid on the fact that in addition to this loss of gold there will be a loss of nearly one-half the value of the present silver currency from its depreciation. In attempting to increase the amount of circulating medium in the country the Popocratic party will in fact, if they succeed in carrying the election, reduce it by nearly two thirds.
If the above train of thought has been already presented to the consideration of the public, I hope you will excuse me for suggesting it, but the matter is of such vital importance to the community that I offer that as my excuse.
ALFRED F. STEVENS.
Newark, N. J., Aug. 29.
We have already, several times, explained that no great amount of gold is in circulation in this country, and that, therefore, it is idle to discuss the effect of driving it out of circulation. Our correspondent is right, however, in saying that under the reign of silver it will require a larger volume of circulating medium-that is, a larger number of dollars-to do the same amount of business than is now required under the reign of gold. Prices being doubled, purchases and sales would be computed accordingly. Still, the deficiency would soon be made up by the influx of silver, and the impediment to business would not long continue.