New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-31
PRACTICAL INSULTS.

Bonds fa'l abroad and gold rises here. The
credit Of the United tates is shaken. although
it is still the general belief that veto will
defeat the Silver Ball. The mere apprehension
Of its passage brings rapid sales OF bonds by
foreign holders, and a fall in the value Of
grecnbachs mt home Stock gamblers have
thought that shrinking Of the greenback
would cause rise in nominal price of stocks.
But tho apprehcnded depreciation in value of
railway securities outweighs the shrinkage Of
the currency, and there is also n considerable
fall in stocks So much for fear Actual pass
age of the Silver Bill would cause much
greater changes of the same nature.
/. Stocks must fall, no one can tell how much,
when capital is alarmed and ohrnks from i'll
vcstments OF every kind not based upon gold.
H. United States bonds must sink III gold
value, as they begin TO sink already. 1t is
plain that if the bonds fail only as much as
the currency in which they are quoted depre-
ciates, little change in nominal price Will
result. but there is every reason to expect
much greater decline. The world has an
opinion OF ITS own about bad faith. We have
promised to pay gold, and if we low decide
to pay silver, the world considers it swindng.
The bonds fall, not only because ito silver
is worth less than gold, but because the note
of confessed swindlcr is not worth "a much
~ the note of an honorable merchant. Foreign
holders do not want promises to pay depreci-
ated silver and bearing interest in that coin,
made by "a Government winch cheats its cred
,tors and knows no honor. As they offer to
sell the price here viii fall in currency as
fast as it falls abroad in gold, and the actual
value of the bond, TO millions Of depo,tors
and other creditors in savings banks and lnstr-
ance and trust companies here, Will depend
upon the disposition O.. foreigners TO sell or to
buy. The solvency of hundreds OF corpora
tons depends upon The public credit. which
the Bland bill destroys.
III. Gold must rise, not only because thou
sands of investors, wanting to draw ont their
money and get it into some secure form. will
try to buy gold, but because it will thence
forward be possible for buyer to pay for it
in silver dollars. Every one will expect the
nominal price of gold to advance as soon rs
silver dollars get into circulation, at least far
enough 20 correspond with the difference In
bullion value between silver and god-that is,
TO about Ill. Shrcwd men will not sell az
lower figures il they can afford to hold, and
realize iIlt pTOnJ III piiCt'
lenders and merchants who now turn their
assets into gold or good contracts 10 pay gold
will not merely secure themselves against loss,
but, in case of the passage of the Silver Bill,
will realize large gains But the demand for
that purpose, from them and from persons
owing them, will serve to push gold still
higher.
". On the other hand, significant news
comes from Europe. France decides, IN view
of possible recommendation here, not to resume
coinage Of silver. The debate in he French
Senate shows that there is Il stroDr nd grow
ing f. cling that, if this country CO ns at the
ratio of 16 to ], France will be obliged to
abandon entirely the coinage of silver IA a
leCal-tcnder. Other nations of the Latin
Union must follow France. These together
have more than $500,000,000 in silver to
sell, which will be pressed upon the market
az soon as they dcmonetize 1t. Nobody can
guess how great fall in the price of silver
bullion may then occur.
Y. It is commonly thought that greater usc
of silver in this country will lift the price.
But speakers and writers wholly overlook the
fact that the grccnbacks, changing III charac-
ter as soon as the bill passes, will exclude
silver from general circulation and from yalu
alton on account of an increased demand for
it's use, just as they now exclude gold AT
once the legal-tCndeI, now n note to pay gold
will become u note to pay silver IL ILLS the
demand completely, except as to duties. For
other dues, it can be used as well as the silver it.
self. The sum which the Government can take
in Tor duties scarcely exceeds tie sum which, if
duties are paid in silver it will be obliged to
pay out for interest and other purposes.
Hence the increased demand for silver will bc
significant-actually less than the amount
used for subsidiary coins in n single year.
Necessarily silver must settle to lis bullion
value, and the depreciation of the paper dollar
must keep pace with the depreciation Of the
silver dollar, though, of the two the former
must have tho lower price, being only prom
Use.
VI. Thus we shall have, if the bill passes,