New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-18

IF the Syndicate has been paid 100000 for
its services the Government has gained that
much directly, and incalculable advantages
indirectly.
The sale completed, what is to follow First,
of course, speedy relief as 10 the gold market
The demand for the purchase of bonds VIII
cease, unless new contracts are made; specie
will then begin to accumulate rapidly OUTSIDE
of the Treasury. Having taken S1O,OO0,OOO
of the bonds for European account, the syn
dictate bankers have large fund against
which to draw whenever it Is necessary IN
order 10 keep exchange below the shipping
point. It will be their interest DUNG the
next three months to prevent excessive exports
of sDccie. and to facilitate the accumulation
of gold by the banks in preparation for re-
s,,mption. II has been reasoned that the with
drawal of so. 900 900 of capital from active
use, coming directly after a similar withdrawal
of $15OOOO,O0O b. sales of bonds returned
from Europe, would produce much stagnation
in business but no such result has appeared
as yet; money is plenty at very low rates,
and there is no adequate demand for the
capital remaining uninyested The price o!
gold has been disturbed less than half OF
per cent since the operations of The Syndicate
began, and even the speculative premium
never rose to | per cent, while 1t is well I'M
derstOOd that, except from speculative infIu-
enccs, the premium is merely nominal. A few
sales of real gold, a moderate addition to the
coin in the market, has sufliced at any time
to break the price. AS the sales of bonds, cx
cept for refundng. are about to cease, and
specie will accumulate daily, the spectators
for an advance in gold will be apt to suffer
again, as severely as they suffered in March
and April.
Many measures are now suggested for the
consideration of Secretary Sherman. Possibly
il may occur to him that some of these sug-
gcstions come from men who declared, not
long ago, that it was impossible for him to do
anything without their aid, or impossible to
do anything 1T ALL or who did their utmost to
prevent his doing anything. He has shown
that he knows very well what he Is about.
Not for his but for public information, some
of these suggestions may be discussed. 1t Is
said that he should now offer to receive cOu-
pOns for customs duties thirty or sixty days
in advance of interest payments. No doubt
il there were especial danger in the gold mar
kct this might serve, but there is now no ap-
parent reason to anticipate difficulty Of that
nature. Except to depress the price of gold,
we cannot see what good this operation would
do. Ii would neither draw lcgal-tcndcrs from
use to make room for coin, nor increase the
use of coin, nor strengthen confidence III the
ability of the Government, nor help in any
permanent sense to fortify the banks 1t is
only one OF the many cXpedients 10y which
Temporary combination to force gold upward
might be quickly crushed.
1t is also said that the Secretary should now
take special measures to facilitate increase OF
circulation by the banks But the banks have
had ample opportunity aud encouragement,
and if they have done very little to help the
Treasury or themselves, 1t has not been for
want Of much advice and fair warning. Score
tary Sherman wisely rcirains from any step
which mag seem to the public an effort to
cxpel legal-tendcTs from use merely for the
advantage of bankers. He knows that all
retirement of legal tenders by the issue of
bank notes involves, not contraction, but an
expansion Of the paper currency, and that the
downward tendency of the premium on gold is
accelerated by withdrawal, not Of legal
tenders alone, but of all paper circulation.
IAttllliE Us INC bNpSliAullOh VI bAdh h'i''
FOR ereenbacks results from the natural de-
mands OF business it IS au obstacle rather
than help to resumption. BY another class
il is urged chat silver should be paid out
freely. The trouble is that nobody seems to
want the silver, except importers, and they
want it only if issued in so large amount as
TO I've purchasablc at less than par IN gold.
The larger thc amOaut issued, as long rs small
notes remain in circulation, the more surely 1t
will flow back in place Of gold by payment OF
duties. This would be no advantage TO the
Government; it would only help the importers,
while creditors to whom silver may be paid
would suffer. Also, public confidence III the
ability Of the Government might be shaken
On the whole, it is fair to trust Mr. Shcr-
man. Without rcsorting to any of the eX-
Incidents already mentioned, he has ample
power to bring about virtual resumption at
any time, and by means which he has fully
explained. He can sell gold, and thus take
in lcgal-tcnders; he can gradually draw in
small notes, and thus make room for some
permanent circulation Of silver coins; be can
temporarily deposit with duly authorized
banks gold enough to make specie abundant
III the market, with the understanding that
these banks shall gradually accumulate legal
tenders; or he can receive lcgal-tcnders for
duties. BY either of these methods, or by
iudcious combination of all of them, he can
so eifectually prepare for resumption that,
long before the day comes there will be no
one Wiling to surrender any part of the paper
outstanding in order to get coin.
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THE NEW REBELLION.
The Democratic majority in the House Of
ID. Is,y. GraIIv fnrcaI tI,ro,,,I,