The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-23
Specie Payments and Double
Standard or Value.



the civil war, equally with gold al unlim-
tied tender for the payment OF debts.
Senator Sherman, to whose depart
ment this subject more Immediately
belongs, was not present at the banquet, and
had it been convenient for him to attend he
might have hesitated to commit himself
more explicitly than Mr.. Evarts did on
question with which he will have to deal
officially and responsibility when Congress
meets. The vague but significant intima-
tons OF Mr.. Evarts were probably thrown
out as feeler to public opinion. and neither
the administration nor the Secretary OF the
Treasury will be bound by them if the drift
of financial opinion should prove to
be adverse. The remarks of Mr. Evarts
show that the administration regards the
double standard as an open question and
that it has at least leaning toward lis re-
establishment We learn from trustworthy
private sources that Secretary Sherman is
bestowing much careful thought upon this
question and inclines at present to favor the
re-establishment Of silver as full legal ten
der except for paying the interest and princi-
pal OF our national bonds. 1t the experiment
is to be tried this is wise reservation,
for if silver and gold can be maintained at
an equal value it will be no more burden
some to the government to pay in one metal
than in the other, while fear that silver
might deprcciate would obstruct the sale OF
the new bonds, into which it is the obvious
interest OF the country to refund the public
debt we approve Of this exception, and
think that the rehabilitation of silver
as a legal tender for other purposes
is fair question for discussion, al
though we would not wish to see it
decided without thorough sitting OF the
arguments pro and con. In the present as
pect OF the question we think there is
great deal to be said in favor OF the policy
toward which the administration is under.
stood to lean; and regarding the noteworthy
passage in the speech Of Mr.. Evarts as o
feeler to draw out an expression OF public
opinion, we are willing to state the favor
able view, reserving our ultimate judgment
until the question shall have been more
fully discussed.
So fur as the question of specie payments
is concerned we have no doubt at all that
the reconciliation Of silver would promote
that much to be desired contamination. Prep
aration for specie payments implies large
reserve of coin tor redeeming the greenbacks
as they are presented. 1t is self-evident
that this indispensable reserve can be accu-
INFLATED with less trouble and expense with
two metals than with one. Ii we should at
tempt to resume on gold alone we should
disturb all the money markets of Europe in
accommodating the necessary reserve, and
those markets would have strong motives
for attempting to thwart US. But if we re-
deem in silver as well as gold we shall meet
no similar obstruction in accommodating re-
serve of silver. With bi-metallic cur
rency we should have the great advantage Of
drawing upon two sources of supply in
stead Of one and in drawing on the silver
source we should encounter no oppo-
sition, because our policy would not
affect the money market Of Europe. It
is self-evident that we cannot resume
without o large coin reserve, and equally
self-evident that we can acquire this neces-
sary reserve with more ease and facility
if we restore silver to the place it occupied
before wewent into the experiment of ire
deemable paper. The reconciliation of sill
yer would put us precisely where we stood
sixteen years ago, before the paper legal
tender was tried not an ideally perfect sit
dation, perhaps, but one great deal better
than an inconvertible paper currency. There
can be no doubt in any sane mind that we
could resume specie payments more easily
| alone. There would be less expense OF
time and trouble in accommodating the neces-
sary reserves, and we should be more secure
against drain of our coin 10 Europe if it
consisted in part of metal for which the
nations of Western Europe have but a mod
crate demand. SO far us the experiment OF
specie payments is liable to be INSTRUCTED
by foreign drain of coin we should be
altogether more secure with the double stan
dard than with gold alone.
Ii may be plausibly objected that our do
mestic currency would be liable to fuctua-
tons in value if we should restore silver to
the old position which it held previous to
the war; Even if We were TO admit that this
objection has all the force claimed by those
who urge it it would still remain incontesta-
bly, true that the fluctuations in the value o.
our currency would be limited to the fuc-
| tuations in the value Of silver. paper
currency redeemable in silver would b,
always worth its face value in silvel
dollars. and would be great dea
more stable than the irredeemabl,
greenbacks. Silver, even in the unsettled
and abnormal condition of the silver mar
ket for the last two years, has not varied il
value so much as the money of countrie
| which are afflicted with an irredeemable pa