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

THE EFFECT OF THE LAW.
ITS POWER TO HARM GREATLY LEssENED BY THE
srNATE-A NEW VIEW OF TIE PROBABILITIES
AS TO GOLD AND PAPER.
[FRoM THE REGULAR CORRESPONDENT or THE rEIBUSE.l
WASHINGTON, Feb. 20.-The modified Silver Bill
will undoubtedly become n law The Senate amend
ments though unsatisfactory TO the more extreme
silver natonists, will, believe, after little de-
lay, be accepted by the House. General Ewing and
his followers will fume and fret for WHILE and
will make great show of their opposition to the
limited coinage of silver dollars on Government ac-
count but they will be i'll q hopeless minority ana
will finally fall in and vote to concur in the Senate
amendments and oven if they do not, it will make
very little difference. The moderate silver
men-those who bulldozed into the sup
port of the Bland bill by public clamcr, but
never really believed in 1t, and who. If anything,
have become conservative than before
during the past few weeks, are glad of the oppor-
tunity their consciences by assisting to put
limitations upon that sweeping measure; and
Joined as they will be by the minority who OPP
posed TO any legislation the silver question: they
will constitute n majority of the House. The convc-
ton that no bill moro radical than that to which the
Senate has agreed can command the support of the
two-thrds of both houses necessary to pass ii over
the Presidents veto will also many silver men
TO vote for it in its present shape on the theory that
half n LOAF is better than no bread.
Judging from the present temper Of Representa-
tives should think the bill would be discussed two
or three days before the voting the Senate amend
ments begins. The desire for an opportunity to de-
bate the bill is almost universal. The opponents OF
il have constantly complained of the manner in
which they were forced to take q snap Judgment
without having an opportunity to speak in explana-
ton of their votes when the Bland bill was first
passed and the supporters of the measure are now
equally anxious to explain their positions
Accepting the final passage OF the amended bill
over the Presidents veto foregone conclusion.
il becomes not only interesting but important, to
ascertain in advance what the practical effect of its
execution will be. The new silver dollar OF 4l2i2
grains will be token coin limited in volume, and
issued by the Government only for its full nominal
value 1t will be q subsidiary coin in every respect
except one-its unlimited legal property-and
even that will not for a long time to come greatly
affect its position in and influence on the National
currency.
PRICES OF BuLIoS-INFIATfoN.
This being the general character of the proposed
new con First, there il reason to believe that the
enactment of the Senate bill will greatly affect the
price of silver bullion in the London market Tie
average price per English standard ounce OF silver
in 1870 was 5G3, pence. During the Twenty-Five
months ending in November last, there was ex-
ported to the East from London and San Francisco
about Sli35OO,OO0 worth of silver ian unprecc-
dented amount and there consumed by The
minis of the United States for subsidiary coinage,
about $500. 900 worth In spite Of this heavy
drain upon the market, silver has fallen
since 1873 more than two pence per ounce,
or 4lo per cent the average price durng the past
few mouths having been about 81 pence 1t is hard
w possible that the Eastern demand can continue
as great a. it has been; and rs our MINIS, If they
work to their full capacity in tho coinage of silver
dollars can turn ont only between thirty and forty
millions a year. there is no reason to SUPPOSE that
the operation of the modified Silver Bill, If 1t be-
comes a law will cause the market price Of silver
materially to advance. 1t may possibly indirectly
cause the price to decline. by leading France and
its monetary allies TO abandon silver.
Secondlv-The passage Of the bill now before the
House Will not necessarily cause an imitation OF the
currency. The new law hardly go into effect
before the LIST of April, at the earliest. During tho
remaining nine months of the present year the
amount of silver dollars coined would not be over
from twenty-five to thirty millions. If the Secre-
tary of the Treasury PAYS these dollars out fast
as they are made, they will probably drive out OF
circulation and cause the retirement OF an eqnai
amount Of National bank notes which are already
redundant for they may 90 into the banks as a
part of their specie reserve. IL the Secretary re-
tans them III the Treasury part of his 10 Temp
ton fund.- as he will have a right to do he may,
after the 1st of next January, use them to redeem
Treasury notes.
While there is some question in Mr.. shermaRs
mind whether the Resumption Act requires the can
collation. of Hcenbacks redeemed after the amount
outstanding has been reduced TO T300.OOO.oOo,
there is no question ab0ut what he shall do with AL
notes in excess Of that sum wnich he may pay on
The amount of lega-tcnder5 outstanding February
l. WAS S}I9 1924. If the silver dollars coliieu
before the first of January 1879 should be retained
i'm the Treasury until that date, they might all thci
DO used 10 reduce the volume of outstanding green
backs without adding a single dollar to the bulk Oh
the circulation. - 1;
In any event unless the demand for currency Is
greater during the next few months than III mas otch
for the past two years. the issue OF thirty or fofy
millions of silver dollars under the conditions lli-
posei by the Senate BILL will not result III percep
tible increase in the amount of money III aciuai
circulation
GOOD USES OF RESTRICTING COINAGE.
Thirdiy-The 4l2i2 grain dollars If put INTO circu-
atlon under the restrictions OF the amended Diii'
will be at par with lega-tender notes, aud may DO
worth a very small premium. They Will be at par
with greenbacks for the reason that iractioha
silver coins are now at par IN ordinary ekchahRe'
while trade dollars. intrinsicaly worth consul
erably more are at q discount, because no ono can
got one of them without giving ooi-
lar or its equivalent for it (whlie trade
dollars- can be obtained for the actuai
value of the bullion they contain plus the