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

ard Countries leave the question wholiy "
practical and intelligent men OF france Vi
other countries Dhich still use SILVER as
standard of value and the verdict WIZ w ~,
nearly unanimous, that the United states WI,
disgrace itself, and damage its credit Deyono
nossiblc repair, if it enacts that bonds oc-
| licvcd bv the purchasers to be payable pilh-
cinol and interest, in gold, shall hereafter
bo novoble. principal and interest, in silver,
worth g per cent less. No ingenious argument
,,iu hrool, tbc force of the fact. No sophistry
will wine out the dishonoT which such an ACT,
in the opinion of intelligent business men Vi
every civilized country, will fasten upon the
United States. For proof, we have only TO con-
slider the sales of bonds. The bankers who arc
dealing in United States securities are Keen,
practical, and emncntly selfish III their calcu-
lations. as negotiators must be, and they would
be very glad TO make their per cent on sales,
caring nothing whether the purchasers were
believers in gold or silver. The sole question
with them is, whether they can sell the bonds.
A bond to pay 81 900 in gold, with $40 yearly
interest in gold, they can sell. A bond to pay
81 900 in silver with $40 in silver payable
yearly, they cannot sell at par, because, In or
der to issue such bond, in view of the laws
which have governed the policy of the United
States this country must appear to all cred
itors to repudlate its obligations.
The talk IN some Western papers OF funding
the debt by the sale of per cent bonds, interest
and principal payable in silver is simply child
ish 1t shows strange want OF information
in respect to the grayest question That can
affect the public honor and credit. WITH dlil-
Guilty the credit Of this country has been made
so good that per cent gold bond could
he sold at par in gold With no change IN
credit. q silver bond might barely sell at par
in silver. But no man intelligent enough 10
speak to a small meeting i'll country school
house can be ignorant that the recall OF gold
bonds, and their forced payment n silver,
would greatly damage the public credit. Such
shock would render it impossible to sell gold
bonds for par in gold or silver bonds fol par
in silver. and, therefore, would render the
selling of any bonds impossible.
"But why wait for foreign buyers ?" some
saw. "Let us offer a silver bond to our
Gown people" Are they, then, more stupid
than foreign dealers, who have more unem-
ployed capital to spare, and are hunting Tor
sound investments As a matter OF fact, the
unemployed capital in this country II 1t could
be all drawn into per cent bonds would not
suffice to meet the necessities of refundlng
three months, nor woud it meet at all the re-
ouirements of the Treasury in preparation for
RESUMPTION. But if it would, what result would
follow We should withdraw from support OF
industry in our mines mills, factories ana
stores, many millions of capital in order to
discharge with disgrace debt due to for
eigners which they would not now want paid
at all if this country were honorable. 1t would
be TO say, in effect, to German, French and
English lenders, " TO cheat you now, we give
"silver where you reasonably expected gold.
We take the money from our own INDUS
tries. which already languish for want of ac-
tive capital Truly, this is startling states
manship.
What do we care whether legal plea can
be made in defence of this fraud The world
will hold it an Infamous cheat. The cost will
come back to us; we shall save at the spigot
bv paving silver instead of gold, but waste at
the bung by killing our credit abroad Foreign
capital is absolutely necessary to the health
and growth of our industries. When we sud-
denly call III, by any act deemed reputation,
American bonds now held abroad, we shall
quickly find banks, insurance and trust COM
panies, and railways, going into bankruptcy by
the score Is this good time to try the eX-
perimentl We may think and declare that we
have the right to pay silver, instead of gold.
Foreign holders think the contrary. To try
the experiment is to invite general bank
ruDtcy