New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-21

limited, while the quantity of trade dollars may be
virtually unlimited. The Bland dollars may be
worth small premium in grecnbacks for the reason
that they may be used for the payment of duties,
while the legal-tender notes cannot be so used.
The issue of Bland dollars in limited quantities
will not at present destroy our paper standard OF
value nor prevent transition to gold standard
IL specie payment should be resumed. This view OF
the matter seems to have been adopted in Wall
Street and in London, for tho price of gold has
fallen in New-York and United States bonds have
advanced in Lombard Street since the passage OF the
amended bill. 1t is now seen, The London Times
of the 10th says that the limitation which the Sem
ate has put upon the issue of silver dollars is ana-
mount to making them subsidiary coins, which.may
have effect upon our domestic currency but
can have but little influence OH foreign trade.
EOurthly-It has been said that the silver dollars
fast issued will pass into the hands of brokers,
who will sell them to importers, aBd that they In
turn will use them in the payment Of duties. thus
converting the gold revenues of the Government
into silver revenues. This believe to be mistake.
Unlimited free coinage would undoubtedly result
in this way. But the provisions of the amended
bill are such that gain any advantage by
paying duties in silver coin unless the premium In
gold should materially advance, so as to leave
sufficient margin of profit for the seller OF the silver
coin, the broker and the importer, and TO pay for
the extra trouble. With greenbacks within l or z
per cent of par in gold and with silver dollars at
small premium in greenbacks the profits of paying
duties in silver would be very small.
TV1hly-The silver dollars issued under the restric
tions of the amended bill will not drive the gold
out of the country. The operation of Gresbam's
law that bad money drives out good money" de-
ponds upt u the absolute equality of the two kinds
of money uefore the law If the Resumption Act
is carried into effect the first of next January.
land the Secretary of the Treasury has sworn to
ecute it, gold and greenbacks will be at par, and no
one get silver dollar Of 412l2 grains without
paying gold dollar, its equivalent for it. In the
meantime not enough of the silver will have been
issued to have had any disastrous effect our stock
of gold. That may be indirectly decreased by the
return of United States bonds, but not by being
crowded ont by the silver coins. After January /,
1879 people will pay ont silver dollars gold coins
Orlegal tender notes as may be most convenient.
Neither one on account of the operations of this
bill. will be at discount.
.Sirthly-The amended BILL if it becomes law.
will neither establish double nor a silver standard
of values. 1t will not furnish cheaper currency
than we now have nor deprecated one. 1t will
give to any debtor the option of discharging his
pecuniary obligations in a cheaper medium or ex-
change than is now furnished by gold and legal
tender notes. In short, the modified bill does not
rcnonetize silver to much greater extent than the
legislation of 1915 and 1876 providing for the issue
Of subsidiary coins did.
Srenthly-I do not believe that the Secretary will
silver coin before the LIST of January, 1879, and.
il my reasoning in this letter 10 correct,
it will make very little difference Whether
he pays in gold or silver next year. The Secretary
has always held that due regard for National
honor and the preservation Of the public credit re,
ouires that the interest on the bonds of the United
shall Ina Maid in gold. 30 stlOuEly did he be-
lieye in this doctrine that he wrote letter tn tho
Syndicate last Summer distinctly ayowing II, ana
plcdglng the faith of the Executive Department OF
the Government as far as he was able TO DO so;
that the interest the bonds then being sold
should be paid in gold. He cannot, therefore, hon
public debt IN silver dollars unless expressly com
nanded to do so by Congress- and the Silver Bill.
1t now stands. contains no such mandate.
STILL IT ~ BiD LAW.
There are many reasons why even the modified
Silver Bill ought not to become law. and
they have been very fully set forth in the
debates in the Senate and in the discussions in
the press One Of the strongest of these
is that the present is step in the wrong d
cton apd would not have been agreed to except for
the belief that its effect would be to givet country
cheap money. and to enable debtors to discharge
their obligations without paying honest dollars. IL
allowed to become q law il will be so much the
easier In the future 10 take the remaining steps which
lead 20 reputation. It's passage will njure public
credit A. The London Times the 9th says the fact
that public creditors will not be at cheated does
not alter the fact that the political factions in
America have been PLAYING fast aud loose with the
general credit, or that the passage of this bill IS
distinct breach of faith III intention.
The reasons why the President cannot sign this
bill. and why any honest Representative who has
not been mised by the s0phstrcs OF the silver men
or blinded by popular clamor cannot vote for It,
overwhelming, although the disasters that will fol-
low its passage not be as immediate or great
as many have feared. Z.L.w.