New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-07-21
NIL YER.

There IS slight reaction III lhc pIlCc VI
silver. Since this country is the chief producer
of that metal, it is natural that every change
Of price should attract especial attention here.
Those who believe that the existing dcprccla-
ton must be temporary, and that silver must
presently recover its usual value as compared
with cold, welcome the slight change of price
as an evidence that the turning point has been
reached ard that silver will hcnceiOrth grad
ually increase. Others, who attribute the de-
probation to causes of a permanent character,
believe thatsthe downward no ement Of price
has only been temporarily checked. The lead
ing editorial in The London Economist of July s
throws much light upon this question and is OF
especial interest in this country 1t refers particu-
larry to the great loss which results to the Indian
Government from the depreciation Of silver, III
which that Government receives the whole OF
its revenue, and to British merchants who
have large remitanceS to make from that
country, and discusses the remedies proposed.
These are the adoption Of a double standard
for India and the demonctization of silver
there. II shows that the double standard
would not help the Government or indiyid-
uals; that debtors would pay in the cheaper
legal tender ana the bad money would drive
out the good. The attempt TO demonetize sill
yer, The Economist says, would involve enor-
nous losses to it's subjects or to the Indian
Government. "The only way in which
- such an operation can be effected is
that which the German Government
"has lately adopted. That Government bought
and found the gold which was to form the
new currency, and, in so far as the operation
d" is complete. has exchanged 1t for the old one.
But no one could now propose this to the In
dian Government as Il means OF relieving itself
''from financial difficulty, for the cost which it
would entail would be enormous. Even with
" all their resources they would have great diff
ficalty in getting the immense sum required
in gold, and they would hardly be able to
sell the silver at any price,
This article, it must be remembered, appears
in a journal which has been most Jealous
advocate of the gold standard Yet it aclnow-
edges the practical impossibility of demcnctiz-
ing silver in India, and urges that " the tall
:" in silver will be greatly lrsscned if we allow
"the ordinary action of trade to spread ii
through the world so that the depreciation
may be everywhere alike, and affect prices
everywhere where silver is the currency;
"tend to keep silver in this market, to enhance
Z" its depreciation here, and to prevent its dit
fusion, winch is the only cure If these
views are correct, is it not plain that dcmone-
tization of silver, not in India only, but in
all other countries in which it is used
as currency, will be found absolutely
impossible 1t is a question, indeed,
whether Germany may not be compelled
to abandon as impIacticable the task of partial
decentralization whIch it has undertaken.
Already the attempt of that country to sell
great quantity Of silver has deranged the price
throughout the civilized world, and very large
sums still remain to be disposed of. 1t is evil
dent that if France, or any other country
using a large amount of silver had undertaken
to escape the disaster resulting from fall in
price by "A speedy decentralization, the attempt
of both Governments to sell would have failed.
But the difficulty becomes manifest impOss-
bility when it Is proposed TO effect this change
in a country using such an enormous sum as
India.
The civilized world cannot get rid of silver
if it tries In the effort it can only
infiict terrible losses upon one country
after another in succession. The conviction that
this is true must soon have its effect upon
those countries which, like France and Switzer-
land, are hesitating in respect TO their coinage.
In due time the conviction that silver cannot
be driven out of circulation will have its effect
upon the price. Meanwhile, the fall in price
tends to cure itself by checking production.
Many mines have ceased to produce since the
year began. The astonishing decline in The
price of "bonanza stocks is doubtless due in
part to the same cause. Consolidated Virginia,
which sold for over 500 per share in January,
has fallen to less than $4S, and the yield of