New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-30
BCSTyESS. and TIE SILVER BILL.

BUSINESS AND TIE SILVER BILL.
The passage of the Matthews resolution by
| more than a two-thirds vote in the House,
brings the country to serious thinking. The
| blind optimists, who have said that the Bland
bill "could not pass" because they knew it
ought not to pass, may stand back. Careful
men, who counted confidently upon the defeat
of the bill by the votes of certain Senators,
find that they were not right. Two OF the
votes cast against the resolution were sup
posed. and are yet claimed, TO be sure for the
BILL If either of them is given for it, without
counterbalancng gain not now expected, the
Bland bill will pass over veto. 1t is time to
consider very seriously the results, first as to
business. and second rs to the political future.
Gold goes up already one per cent, ana Sill
yer goes down. Why' because the bill, as
passed by tho House, will drive gold out OF
the country but will insure decentralization Oh
silver by the Latin Union without adding ma
tcrially To its use here. Paper will become
promise to pay silver, and will exclude silver
from use. The silver will fall, and the
paper will sink below it in value, as the prom
Use surely falls behind the thing promised.
These are necessary results of the Bland Dill,
IA il stands. To expect its amendment, III
apy essential respect, is idle. large MAJOR
ity in both houses evidently demands the bill
~ il came from the House. Hopes OF amend
ment arc held out to delay effective opposition
until il is too late. If changed at all, the bill
would not probably be so changed rs to re-
move its worst features, which arc precisely
those which make the majority III both houses
eager for the bill itself.
business men, then, must look forward 10
change as probable which would deprive them
of one-tenth of tho value of goods sold on time,
OF money loaned. a wholesale dealer. who now
has or il taking in stock worth Sl,OOO,OOo,
which he has expected TO sell ut three or four
months time, must face the prospect OF get
ting ONLY 100000 in real value for his
notes. Does anybody think the Spring trade
can be good with that prospectf Are
not many bankruptcies inevitable, If mcr-
chants cannot protect themselves Fifty NIL
lions of dividends are being paid, and about
5000. 600 900 of loans are maturing nj TINS
season the money ought to be IcinveSted, II
business is not To be utterly Frustrated. But
who wants 10 loan s 900, with the prospect
that he will get back $500 as full payment
by act of Congrcssi Savings banks hold
Nl,ZV
tors let their money lie. Congress may take
S12O .OOO, 900 from it. Insurance and trust
compapies hold, as banks and savings banks
do. many hundred millions in Government
bonds. Congress has deed that it is not,
bad faith to take one-tenth from the value OF
these securities.
Ii must be plain, to every man who knows
how business is done and where active capital
1
il found 10 conduct it, that the pending bill, II
passed, will cause a time OF iughiul disaster,
unless business men protect themselves. Thous-
apds of merchants, now deemed solvent, will
90 down. aud will drag down banks which
now blink owIishly into the future, Indifferent
because unable to see. Thousands OF deposit
ors will get at their money II they can. before
law can rob them of pant OF IT, But these re-
sul's do not wait. Fear of them Will change
thing. at once, and FROM this time forward,
many men will stop lending, stop selling on
time. stop investing or trusting thea funds
| whore law can reach them. Indeed. the fear
is seen even now, and tho failures for January
arc like the leaking Of water through drain
that may break at any moment. What are
business men doing to defend themselves 7
Every man who refuses to lend money or to
NOT only save himself from loss, he will gain
largely, if the Bland bill passes. But if it Is
| defeated. by efforts not yet made or foreshad
owed, he can loso nothing. The buyer who
wants goods, il he il IN honest man, will not
object to promise to pay just what the goods
are worth to-day. The borrower, who wants
money. if an honest man, will gladly promise
to pay what the money is worth when he Dor
rows. If either is not an honest man, it is a
good time to stop lending to him, or selling
| him goods on time. The business man who
makes il an memorable law that he will take
nothing in payment but the cash to-day or
| it, gold value if any payment is deferred, will
very soon be in position not to lose any money,
even if Congress does try to rob him. That
way lies safety.
| But do the banks owe nothing to the bust
ness men who kept them alive by fOrbearancc
in 1878 Can they q on without end, suffer-
Ing a nation of procucers, merchants and
manufacturers TO be lobbed, without an effort
TO stop the plumber? That Is for them to say.
Some make light of dancer. When disaster
comes to such banks, others will make light
of their losses. Some sit stupidity waiting, I'M
able to fix upon methods OF protection. TIE
law Of Commerce, as OF Nature, Is Survival
"of tho Gttcst," and tho banker who las not
the sense to protect either him5,if or his GUS
toners will find the fact remembered here
after. Some want to have part i'll the plum
der No honest man will he sorry when they
take part in the loss. It is the duty of the
banks to guard the business community
against the great danger which is near. They
can, if they will. TO devise methods is easy.
There ought TO be consultation upon the
methods at once. If it comes to pass that the
hanks suffer the business men of this country