New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-14

use notes instead of silver; everybody
will be compelled to use notes for some ume'
because the silver cannot be quickly paced III
circulation and yet every legal-tender VIII be
known to be only promise to pay silver, ana
every debt contracted or deposit made Will be
known to be payable in silver or necessity,
the legal-tender though used III nearly al,
transactions. must fall to or below the lever OF
the coin which it promises. FIRST, the premium
on gold will advance, perhaps to III OF IL per
cent: presently silver itself VIII coihhanu "
prcmium in legal-tenders, because IL can NC
used in Custom House payments; III 'he emu
the actual demand for silver being hot ma
terlally increased, the paper promise winch
takes its place will become worth perhaps 9u
cents the SILVER itself perhaps 93 CENTS anu
tae premium on silver will be about ., ana on
,,oId obout 10 cents on the dollar. But will
the purchasing power OF legai-tehueIs' do "
property, decreaseP
Prices will seek to adjust themselves to TINS
new basis. 1t is the theory of advocates Oh
the Silver Bill that prices VIII rise, ana glSah-
tic cancellations are on foot, looking Tor great
advance in nominal values of stocks, lands' ana
other property. But these speculations tenn
IN defeat themselves. Because there are men
who hold 900. 900 or 100000 shares OF stock,
which they expect to sell at profit If the bill
masses. there is n certainty that enormous
quantities viii be speedily offered Tor sale rs
soon as the price advances. Because there are
lands and other property amounting 10 many
millions i'm value, now held in the hope that TINS
bill NAV cause an advance IN price, enormous
offers to sell Will instantly follow any advance.
Because there are debts, perhaps exceeding
81, OOO, OOO, 900 in amount, which debtors nope
to nav in deprecated currency, the rush to get
currency with which to discharge these debts
will affect its market value, or purchasing
power, with respect to all property. The offer
ing of stocks and property for sale, and the
demand for currency with which to pay debts,
will tend to decrease the market value OF prop
erty. perhaps more powerfully than the depre-
citation of currency with respect to gold Will
tend to decrease its purchasing power as to
property.
In short, it is very possible that the specu-
lotors may be beaten by their own device.
The great operators cannot unload their stocks
without depressing prices. Vast quantities oil
land and other property cannot be forced upon
the market for speedy realization without de-
pressing prices. In gold, values may probably
sink rapidly, because of great sales to realize,
and TO get rid of debts. This will have It's
effect upon all products which depend upon
a foreign market. At the same time, another
and very powerful influence will be felt. Men
who have held bonds or other property IN the
faith that the United States would be
honest. will also begin to sell. Bonds OF all
sorts. Government, municipal and railway, will
come back from Europe. Savings banks and
trust and insurance companies will try to pro-
tect themselves from threatened bankruptcy.
Loans of large amount will be called in. Is 1t
at all clear that this state Of things will help
impecunous debtors9 Will it not close many
banks, depriving thousands of poor people of
their savings7 VIII 1t not close many mills
and mines, and render many railway and
other corporations bankrupt These are ques-
tons which those should consider who hope
to gain season of temporary prosperity by
an act of National dishonesty. If they con
slider well, they will certainly see that honesty
i tbo host nnIiev