New-York tribune., 1876-07-26

be impossbe) or the adoption of the plan reported
by the House Committee on Mines and Mining,
which cOntemplates the issue OF silver coin certi-
Gates based on deposits of silver bars, and made
full legal tender at the rate of the coinage value of
those bars in dollars, would undoubtedly create
temporary market for of the surplus silver OF
the world and check the decline in its value, if it
did not actually cause considerable advance IN ltS
price But il is a mistake to suppose that the avail
able metallic currency of the country would
be increased by the whole amount of silver
thus utilized There is law of nature
as old as the use of money, and immut-
able as the heavens, which Congress cannot change
or suspend, that "bad money drives out good
money, but that good money cannot drive out bad
money" In other words, two kinds OF money
having the same nominal and legal value, but differ
cnt market values, cannot circulate side by side in
the same country any more than oil and water can
be made to mix. The money which is worth the
most and which is at a premium viii certainly dis
appear from the circulation fast as it is issue
The disappearance of gold aud silver from the ordi-
nary exchanges of this country at the breaking ont
of the Rebellion and the issue of legal-tender notes
is a familiar illustration Of this law.
The value of a silver dollar, should it be coined,
would be nearly quite 20 per cent below that
of a gold dollar The issue Of silver dollars en-
therefore result in the immediate disappearance Of
gold wherever il is now used in this country, and
the substitution Of silver for it, Dr.. Liudcrman,
Director OF the Mint in his last annual report to
the Secretary Of the Treasury estimates the amount
of gold in this country on the 30th Of june 1879,
M from Si27 100000 to Sl39.OO0O coo, 50 that an
amount Of SILVER equal to this sum would have to be
put into The circulation Of this country before the
volume Of our metallic currency would be increased
by n single dollar The surplus silver annually
thrown on the markets of the world 10y reason oi the
decreased demand for expectation to Iuala ana
the increased production Of the mines Is ahoat
$4,000 600. anu the accumulation from the ir-t Oh
the.e causcs alone Is probably not far from
5000 900 600 or 500 OOO, 600 If we add TO this
the 800 600 900 which Germany still has Tor sale,
we find that there is in the markets Of The world
not less than 500, 100000 or rGOoOou,uoo worth
Of silver for which there is at present no demand
but which the holders are anxious to sill to the
United States in exchange for rs gold or any oihrF
commodities with which wc are wiling 10 part on
their terms. II, then, France and the other mcm-
bers of the Latin Union were 20 seize the opportn-
nifty TO get I'D Of their silver on favorable market
land they are all seriously contemplating the aIop-
ton of the gold Standard We might have t. shoul-
der even greater stock Of silver than that which
have named.
The friend, of the silver bills assert ,2 that the
reconciliation Of silver would give us the means
speedily to resume specie payments. There is only
one way in whch specie payments can ever be- hon
orablv resumed in this country. and that il by cc-
cunulating in the possession of the Government sui
fceut coin 10 enable Il TO redeem IL, notes ia cash
whenever they are presented. To obtain that coin
the United states must either IL out OF MS coin
revenues OF borrow it on Its bonds. Wis, legislation
may hasten the time when specie payments nay ho
resumed but when that time actually arrives the
conditions have named must certainly exist. But
none OF the silver bills proposes an accumulation OF
silver coin in the Treasury, either by the sale Of
bonds or an increase of taxes and four-ths OF The
silver iuiatonists wouli certainly vote against any
proposition which contemplated either. How then
is the issue Of silver dollars TO hasten or facilitate
specie payments'
think it is perfectly plain that after one Of these
bills had become a iaw, and tie deprecated SILVER
had driven out OF the country the aore valuable
gold we should be just as far from specie payments
as We are to-day. The value Of the crrenbachs Is
coyeraed by four things. These are: a. The faith
Of the holder in the ability and disposition of tire
Government to redeem them. l2.D Tie time when
they are to be redeemed. 3D. The character Of the
money in which they are to be redeemed. HJ Ihe
amount m circulation. By the issue of epal-tcudcr
silver dollars we should necessarily change only one
Ofthesc four conditions. Our faith that the Govern
ment would finally pay its notes might remain uuin
paired; the time Of payment is now indefinite and
would remain So, and the amount Of grcenbacEs IN
circulation would not be changed. But the charac-
ter of ,hc money in which they would then Bee re-
dccuablr would not De the same. Now i- d, gold
then it would be silver. But silver is now worth
about 20 per cent less than gold and any note
which, at some future time is 10 be- redeemed m
SILVER, would, therefore No worth about 20 per cent
less than one to be redeemed q. tic same time IN
gold. In other words the l"gal-.eudrr note which,
being based ON gold i, now worth s9l2 cents iu gold
would be worth only GIG cents in gold if il was
based on silver.
Now, applying the law that bad deprecated
money always drives ont of circulation q good or
underyalucd money, we must inevitably arrive 81
the conclusion that the issue OF lcgal-tender silver
dollars would not result III their passing into the
circulation at all Our gr,onhack- would ic deprc-
cated below their present value to the same extent
that the silver was deprecated below gold and still
remaining a cheaper currency, they would drive
the silver ont OF circulation, they cause the
gold to be a stranger n our ordinary exchanges.
The third arcume,a Of tine silver inhauouists in
favor Of their bin is that ly restoring 30 the Gov
ermcn and the debtor class the right to pay their
coin debts in a description Of money which was
full legal tender for them when they were con-
traeted, We may relieve the country Of some Of the
burdens that are now depressing business. No one
can deny that at the time our bonds were issued
and down TO February, 1873, it would have been
lawful to pay the interest upon them in silver dol
lars Indeed, the boudholders would have pre-
ferIed the silver to the gold, for il always at
premium. Gold and silver are both mcutoAed'in
the public credit act Of 1860.
Rnt natinns like inhirilnals do not alWaI. find