Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-09-12

slaughter of regulators by the very
weapons which they fashioned for the de-
feat of resumption.
We have repeatedly expressed the be-
lief that still better mode OF reaching
the same end would be to pay out gold d.
rectly in place Of legal tenders. But Sec
rotary Sherman is charged with the re-
sponsibility of selecting the methods by
which the "Sherman's Sham" OF demo-
cratic journals in 1875 can be made most
effective for resumption in 1879. and he
deserves the full confidence and support
of all who really desire restoration OF spe-
Gle payments aud maintenance OF the pup
lie credit. Assuredly the method he has
chosen to adopt promises to be an exceed
ingly effective one. If, as many have ln-
sisted legal tenders TO the amount oil SOU
600 600 must be withdrawn before The re-
mainder can circulate at par. the plan Of
Mr.. Sherman provides for the withdrawal
OF AN amount at least equal to the Gus
toms duties TO be paid prior To January /.
which will be nearly $40 200. COO, leav-
ing an insignificant sun to be redeemed
after formal resumption takes place.
Events wi probably prove that the with
drawal OF IA much sma Ter amount will sui
flee. Meanwhile the Secretary stu has
power to pay out either gold, legal tenders
or silver, Tor the ordinary expenses oi the
Government, as the circumstances may
require.
| BY some persons who, though profess
| ing to desire resumption. have bitterly
opposed every practical step to that end,
TINS measure is criticised on the plea that
silver dollars will presently get into cir
culatiou to large amount, and will then
sink to their bullion value. Experience will
show, within few days, how much rea-
son there is tor this objection. Ii has
been found utterly impossible 10 get the
silver dollars into circulation in place OF
legal-tenters, except for the payment OF
duties. Practically no other demand ex-
lists for them; Tor that purpose, the de-
mand cannot exceed the amount OF duties
to be paid. The Treasury can now pay
out 81, 600, 900 in silver. and within u
month that amount may be returned to
its vaults. Beyond about that amount.
there is no reason to suppose that silver
will be demanded in exchange Tor notes.
In any case, it must remain essentially a
token coinage, confined TO this country
because more valuable here rs a repre-
sentative OF gold than elsewhere rs bull
lion. Ii can be obtained only by pay
ment OF its par value in promises OF the
United States to pay gold January L. 1t
can be obtained .n.y in limited quantity.
as long as any premium ON gold remains,
and alter that disappears, no one Will
want it even for payment OF duties.
For three months, the premium on gold
has been less than per cent. For day
or two, early in June, lOl was the nomi
nal price, but before that month closed
gold fell TO 100 s, d has never risen
above 100 "a since July l. The expec-
tation of free issues of silver dropped the
premium on gold to 1908 on Saturday,
and it does not appear probable that any
premium whatever Will be maintained
many days. There will be no use for
gold, because legal tenders will become
virtually payable for duties. Foreign
balances are heavily in favor of this coun-
try, and doubtless will so remain during
the rest OF the year. As long as men hold
gold as merchandise, on the chance that
it may rise, it is costly stuff to carry. Nor
can it be probably exported. as long as
payments to this country greatly exceed
payments by this country. The supply
in the market will be swelled by the yield
from the mines and by payments of inter-
est from the Treasury, and. meanwhile,
nobody can find use for the stock on
hand. Under the circumstances, it will
not be surprising il gold sinks t. par very
quickly. The fiat money lunatics will
probably have to write a new set of
speeches before the elections in October.
---New York Tribune.
The fever scourge at the South has
called into exercise the sympathies of all