Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-03-15
SENATOR WINDOW.
He Has a,a Interrie.c to Delight the Wosld
With That He DON'T Knoac 4b0Mt Fisan-

Dl1N II LULU Nv l4NDVlus
He Has an Inteyvie.c to Delight the World
With That He DON'T K,ioac 4boat Fisan-
ceS,
Washington Cor. Chicago Tribune.
Senator Window, Of Minnesota, was long
considered one of the doubtful Senators on
the silver question. He apparently has no
doubts now. In an interview which he has
accorded to the correspondent of the Tribune,
he very clearly sets forth his opinion upon
the most important question now before the
Senate the proposed repeal of the resump-
ton act. Mr.. Window takes strong ground
against the repeal, claiming that it would
certainly tend to nullify the effects of the
silver legislation. An expression of his
opinions in detail follows: eff the resump-
ton act is to be repealed, how can paper be
kept at a perfect level with coin silver2"
SIN that event it will, think, be quite
IMPOSSIBLE TO KEEP GREENBACKs AT PAR
WITH SILVER COIN,
and for the following, among other reasons:
l. Such repeal, at time when gold is at
premium of only u per cent, and when
we have substantially reached specie-pay-
ment, will be justly regarded as an indefinite
postponement of resumption, with the intent
to force upon the country a permanently
irredeemable currency. This of itself will
be sufficient to largely depreciate greenbacks.
lrredeemable notes, thus stamped with bad
faith, and having no intrinsic value, cannot
possibly be kept at par with coin currency,
the intrinsic value Of which is about equal
to its money value. 2. The fact that gold
and silver coin are receivable for customs
and other public dues, and are legal tender
in payment of interest on the public debt,
while greenbacks have no such elements of
value, will necessarily prevent the green
backs from reaching or maintaining par
value with the coin currency
elf it cannot be kept at such equal value,
will silver then circulate any more than gold
has done?"
"It will not. A superior currency will
never circulate in the presence of debased
or inferior currency. No argument is re-
CURED to sustain this position; for, if the
universal experience of the world were not
enough, our own would be sufficient With
the slight difference of less than per cent.
which now prevails between gold and paper
money, everybody knows that gold does not
| circulate
'Would not, under such circumstances
the repeal of the resumption act nuliify the
| IenO1lGL1ZaIlO0S,
Sin my opinion,
| 1T WOULD WHOLLY NULLIFY IT.
elbow, in short, will the silver circulate as
money among the people, reinforce the paper
currency, and put an end to falling markets
it the resumption act is to be repealed?''
Il have already given my reason for be-
lieving that it will not circulate at all if the
resumption act is repealed"
"ls 1t not true that greenbacks are now
high chiefly because they are redeemable in
gold ten and a half months hence2''
II think this is unquestionably so.''
"Would gold circulate freely any more
than it does now if the premium should fall
even to d of per cent?"
| "My opinion is that gold would be seen
more frequently in the currency than now if
there were a premium of only II per cent;
but don't believe it would circulate freely
with only that small recognized difference in
value"
"Would not the slightest cause send up
the premium, such as any extra demand for
foreign remittances, or for duties, or any
thing that would give the gold brokers a
pretext to charge premium?''
"Unquestionably; and herein would be
found one of the serious difficulties and dan
gers in attempting to float an irredeemable
paper currency in connection with gold and
silver coin. Even if they could be started
upon an equality, which I do not believe, the
causes you have named, and many others,
would send up the coin, and there
fore retire it from circulation, and thereby
produce sudden and violent
CONTRADICTIONS, PANICs, AND BUSINESS D1sAs-
| TERs.''
IF, after the reconciliation of silver
silver and gold coin are exactly of equal size
would either circulate with irredeemable Da.
PERI"
81 think not.''
slf the resumption act is repealed, is it not
folly to say that silver dollars and irredeem.
able notes can circulate together?'
s'Clearly so, in my Judgment
us not the choice really between $500
GOO, 900 of forced irredeemable notes and any
coin or all the silver Congress will order
coined; and as many notes as the govern
ment can keep afoat at par with silver by
redemption demand?''
81 regard the repeal of the resumption act
as measure for contraction rather than ex.
pansion. The proposition to repeal it pre-.
sents to us the alternatives you suggest
-Four hundred millions is the limit to which
we can go with good faith in the issue Of
greenbacks The number now outstanding
is about 364,0OO,O0O. On the other hand
we may, by such repeal, drive all the GOLD
and silver out of the country, or at least pre-.
vent them entering into circulation, and have
currency composed only of this limited
huber of deprecated greenbacks: OF, on the
other hand, we may, by resumption, bring
all these greenbacks to par. When they
would be at once reinforced by the amount
of all the gold in the country, and all the
silver that we can coin. This would pro.
duce
| HEALTHY EXPANSION OF GOOD DOLLARS,
and would tend more than anything else tc
restore confidence, inspire enterprise, give
employment to labor, and put an end tc
falling markets.
Suppose that, by some unknown physical
law, or other cause, greenbacks should keer
up at par with silver until $4,000. 900 o.
$100,0OO,O0O of the latter had been coined
ana put into circulation, and then, for any
reason, silver rose to a premium of cent OF
TWO, would not the country experience the
contraction shock caused by the sudden dis
appearance from circulation of the $780,
100000 silver comp
II think there is no doubt but that it
would. Your question illustrates the mex
pediency of attempting to maintain ire
deemable paper currency. If it should hap
pen, from any cause, that remonetized silver
should reach the premium it had attained at
the time of its characterization. that result
would Immediately follow
WOuld not coin vanish as suddenly as IL
ald on the trst appearance of our irredeem-
aoie forced notes. seventeen years ago?''