New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-12-05

The curtain rises. Preparations for Iesump-
ton are complete, aud Secretary sherman
now begins 10 employ with effect the vast
powers lntrustcd to him. A brief order to
Assistant Treasurer HIllhouse on Tuesday, 10
ISSUE no more gold certificates, III itself
changes the whole situation. TIC Treasury
refuses TO act any longer as ware
house for gold rs merchandise; here
after, those who deal with the Treasury
will be compelled to treat gold rs money.
The coin certificates now outstanding Will be
gradually absorbed in the payment OF duties
or retained for convenience in the permanent
reserves OF BANKS and other financial m>titu-
tons but the fact that no more OF these Get
tifcatcs will he issued is omlnou, for those
who have undertaken TO carry large amounts
Of gold until next year. In January ire
Treasury viii pay out S2OO39,523 l.
interest on per cent bonds, $1,000
on per cents, and $1,775,O00 on per
cents; in all, $2i, S2l,O23. This large sum
bondholdcrs will he compelled to take either
in actual gold coin or in lcgal-tonder notes,
for no gold certificates will be issued checks
of the Treasurer, if passed through Clear
ING House, will be paid in baukablo funds, and
if presented at the Treasury will be paid IN
solid coin or lcga-tcnders What can the
bondhOldcrs do with the coin, If they collect
IT. The banks will receive 1t only as
monCy-thc equivalent of lugal-tendcrs. There
will be no way IN which the receiver OF in-
tercst can keep his gold as such, unless he
locks it M and keeps il idle IN his owl safe
or the vaults of some institution Wmch re-
ceives special deposits OF yIluables. In the
meantime, the mines are yielding ut the rate
of over $3,0O0,OO0 per month, and foreign
exchange is at such point as To forbid cx-
ports. In these circumstances, the attempt to
keep gold as merchandise, and to prevent ITS
passing into use as money, Will involve II
very large capital, with large loss as the GER
tain result.
The action of the Philadelphia banks,
though not very courageous or candid, never
theless involves them III the necessity of co.
operation with the banks Of New-York and
Boston. They decide to make exchanges and
pay balances in gold or legal-tenders in
discriminatory; the consequence is that they
will DO compelled to harbOr gold no longer
as merchandise, and to require silver, if to
any large extent deposited at all, to be
placed on special deposit payable IN kind.
With these rules prevailing at the three chief
cities of the East, and on the Pacific coast,
gold must cease to be merchandise. and sill
yer fail TO become money, for commercial
purposes. The silver coins will remain sub
sidlary and harmless, under existing laws, and
the gold coin must be added to the currency
employed by individuals, or as a free reserve
by the banks.
The danger Of mischievous legislation at
Washington this Winter diminishes as mem
bers become better acquainted with the
monetary situation. Many of the most active
and Jealous opponents of resumption are now
protesting that they will do nothing to pre-
vent fair trial of the Act of 1875,
and it is plain that Mr.. Sherman's re-
port has made them understand at last
the enormous strength of his position. The
country will condemn as Observation-Disclosures any
Congressman who try TO thwart his plans,
since it appears that resumption is already
virtually fact accomplished. All industrial
and commercial interests will be arrayed in
hostility to any man or set of men by whom
an attempt is made to deny fair trial to the
measures of the Administration. The Rcpub-
hcan party, at last, stands almost as united
and solid in defence of the Act Of 1875 AS il
was when that Act was passed aud if any
mischieVOus measure should 90 TO the Prcsi-
dent, "a veto would compel It's supporters to
drop it or to put themselves squarely on the
record as enemies of resumption and the pub
lie faith. In truth, the signs are brighter
than they have been at any time since the
Nation first marched into the mOrass Of ire
dccmablo currency The day of resumption
will be the dawn Of prosperity.