The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-01-11
The Possible DangsEs OF the

The decline in the price Of gold TO 1927
shows that The opinion that the Bland
silver Bin, OF any bill making 4l2i
grain silver dollars an unlimited legal
tender, will not become u Law, Is gaining.
strepgthin Wall street. If It could be
aesepied a a certainty that the sttempts
70 remonetizs silver mIa full legal tende,
will fail, the Disappearance oil the gold
premium In The early future might rea.
sonahly be expected; Tor, except; ior NE
return Of United States bonds @
Europe on account Of the fear that they
viii Be made silver bonds, foreign ex:
change Wonld rule so much In favor oil
his country that gold would be i'm.
norted, or at least q gold product
would be kept in this country and
be available for resumption purposes,
Confidence would be so restored among
those who have money TO lend that capt.
tai would be available for new enter
prises. and with such notifications in b
tariff as are expected dropping industries
would become active and prosperous.
The effect Of resumption on the currency
would be to largely increase its volume,
that il to say, the paper Of the Govern
ment-United States legal.tender notes
would be at par with gold, national bank
notes being convertible into them would
also be at par with gold, and in addition
The whole stock Of gold in the country
would be added to the currency. IL then
there was not currency enough to supply
the Gwants Of trade We should be IN q
position to draw from other countries all
that we needed. In short with the silver
Bill defeated the country would take =
new start and We should enter on q new
era Of prosperity.
Onthe other hand, II the Bland bill or
any other bill which provides Tor making
4l5i grain silver dollars q full legal ten,
der shall become q Law, the par Of limited
States bonds would be the gold value Of
the 4l2} grain silver dollar, and In all
probability the foreign holders Of these
bonds would return them 10 this country
rapidly enough and in sufficient volume
to overcome our large exports oil domes.
tic products, and in afew weeks turn The
exchanges against US 80 that We should
be obliged TO part with the gold that We
have. All that would check the return Of
honda would be an advanced the price Of
gold sufficiently rapid to keep the gold
price OF bonds lower here than'in the Eu-
ropean markets.
81 course resumption in 1879 would be
out Of the question, Tor 1t would be ply
sically impossible for the minis oil the
United States to coin enough silver dol.
lars by 1879 to put the Treasury In a.
good q position for silver payments as 1t
e even Today for gold payments.
The United States legal.tender notes
are to-day regarded as geld obligations,
and are at a discountof only q per cent
They would, with silver 4 fall legal ten
der. Immediately become silver obliga.
tions, and would fall as much below the
par value Of silyer-to day about 80
cents-asi Il would be more difficult for
the Treasury TO pay in silver January !,
1879, than il Is for IL now TO pay in gold.
The most liberal estimate is that II the
mints should be put to work 10 get out
silver dollars by the first day Of March,
not more than $40,000,000 silver could be
coined by January !, 1879; that this
would find its way into the Treasury for
customs Is conceded, for so long Us even
a half one per cent could be saved by
paving customs in silverit is . sale cal
culation that silver rather than gold
would be used.
In the meantime how would the vol
ume Of uriency be Effected? It must be
remembered that only \ small part Of
the currency consists OF lawful money
itself; by far the greater part being cred
its Of banks, firms and individuals.
Against the expansion Of such credits
and in favor Of their contraction would
be the first general fact that il is not an
incentive TO lend, but is rather 4 restric-
ton on lending, to know that the loan
will be paid in something having less
value than that which is lent. So far as
the banks are concerned they would have
10 look 10 their reserves; and they would
be endangered by the Withdrawal or loss
Of the gold part OF these many months
before they could hope to .hAyethe gold
replaced by silver. The tendency OF the
Silver bill would therefore be TO contract
rather than expand the currency during
the year 1878.
That, taking the country a whole,
the enactment Of the Silver till wouldin.
jute its standing as q borrower in the
markets Of the world, and that the sec
tions-like the South and the West
would be most injured because being
most in need Of loans, is IS clear as any
thing can be that has not been actually
demonstrated by events.
On :the q ,6and, therefore, it Is seen
that the material interests Of the country
can be promoted BY pursuing the path
that Is creditable; and on the other that
the slow improvement that has set in will
be retarded II not wholly checked by de.
waiting from that path.