New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-02
SOME cURRENcy ZIG URES.

July have been especially instructive and IN
teresting because they have been unimportant
in amount There was some reason to antlcl-
pate that, after Congress had enacted that re-
tirement of legal-tenders should cease, the de-
crease in bank circulation would also cease,
and on this theory the inflationists urged most
strongly the adoption of that measure. As
usual, their financial performances, like
Rory O'MOOre's Dreams ego by conthraries,"
for the bank circulation has been reduced
1907, 725 during the month. Although some
banks have obtained new circulation amount
ing to $S44,910, others have surrendered
notes amounting to $16,950, and cir
culation amounting to $1,435,6S5 has
been retired by deposit of legal-tenders.
Moreover, the amount Of legal-tenders de-
posted for that purpose during the month
was $S53,200 so that in either point OF view
the indications are that currency will de-
crease rather than increase, Notwithstanding
the passage of the act arresting the retire
ment of greenbacks. 1t is possible that
contrary tendency may prevail for time
during the Fall, when the demand for cur
rency is usually largest, but this would be-
neither an inconvenience nor an omen of evil.
4
seems likely to be.
The efforts of the Treasury to get silver
into circulation have brought results which
Secretary Sherman may well consider atten-
lively. 1t is plain that they have not tended
to lift the value of the greenback, excepting
as they have enabled the Treasury to increase
its currency balance, and thus virtually to with
draw some notes from circulation. About 1851
600 silver dollars have been paid out within
three weeks, but over 81, 100000 has already
returned to the Treasury, mainly in payment
for per cent bonds. In this operation the
Treasury virtually sells these bonds for cur
rency, while it will be compelled to pay
gold for the 6 per cent bonds called.
Only about $4,000 of the standard silver
dollars have been added to the amount IN cir
culatOn. Is it not obvious that the Treasury
gains nothing by paying out silver instead of
goldP Yet it loses all the effect which free
payments of gold instead of legal-tenders
would have upon the market, and upon the
public estimate of the value of its notes.
The sales of per cent bonds have been
extraordinarily large during July, considering
that no syndicate of bankers has been en-
gagged in placing them. After selling $4,97S,-
$50 in April, the Treasury increased its sales
to 81, 53O,500 in May, and $S,052, 100 in
June, but in July the amount more than
doubled, rising to 1922, POO, and during
the latter part of the month reported
sales have been nearly $1,000,000 per
day. There is no reason to suppose that the
amount of per cents taken will not continue
as large in the future. But if such transac-
tons are to amount to $2O,O00,OO0 in
month, they will have very important effect
in several respects 1t would be very desira-
BILE of course, that the difference of 2 per
cent yearly should be saved on bonds to the
amount of S24O,000,O00; virtually it would
add 81, 100000 TO the surplus revenue. 1t is
also true that the amount of per cent bonds
now held abroad is not large, so that the
rapid exchange Of for 6 per cents does
not involve a large difference in foreign ex-
changes But the Treasury has also to con-
slider the effect of such sales upon the pre-
MUM on gold, and upon the necessary prepa-
rations for resumption. IL we are TO have as
much as $4,000, 900 in gold taken from the
market each month on account of bond pur-
chases, while the corresponding payments for
6 per cents and release of gold Will not take
place until sixty days later, the market may
be affected for a time in a manner quite UNI
favorable to the plans Of the Treasury.
The remedy is not hard to find. If the
Secretary will pay ont freely for ordinary ex-
penses of the Government, gold instead of
ereenbacks, or instead of the silver coins
which he has been trying so vainly to force
into circulation, the difficulty will be met at
every point. Silver will not go out as cur
rency, to come back as gold at loss to the
Treasury without helping the value of the
Iegal-tenders. Gold will go ont freely, but
only to make sure that gold will not go out
at all after resumption. Currency will
gather in the Treasury, but only to
advance the purchasing power Of cur
rency in use. Everybody will be helped,
except the silver ring, and especially the Ma
ton viii be helped its credit will be stronger,
and it will be prepared for resumption long
before the day named in the Act of 1875.
Would it not be well for Secretary Sherman to
consider these points He has fully tried the
experiment of issuing silver. 1t does not stay
in circulation; the people will not use it, ex-
cept for buying bonds or paying duties and
it costs the Treasury something for every dol
lar paid out. Is it not probable. then. that
free payments of gold would involve no
more of loss, but would bring resumption
within month 7
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