The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-29
How tn. Bland Bill viii Operate.


If the Bland bill becomes law, of which
there is now great danger, some OF its evil
| effects will be immediate and others more
distant; and all the Immediate consequences
will result from foresight of the more re-
mote consequences. The most important
immediate consequence will be a total
arrest of the refunding of the public debt at
low rate of interest. The new bonds
create distant obligation to be discharged
by the government after the lapse Of many
years, when this lunatic experiment will be
bearing its ripened fruits. But except on
contracts having o considerable period to
run the mischiefs of the Silver bill will
passage. 1t is physical impossibility for
the mints to food the country with coined
silver at once 1t is not the mere enact
ment of the law. but the things which will
afterward be done in pursuance Of it, that
will produce the evil and all the minis
must be kept at work for some time at their
full capacity before coined silver will sink
to the value of the same quantity of silver
bullion. For while, at first, the new
silver dollars will be at par with gold, be-
cause they will be equally receivable with
gold for the payment of duties and be in
sufficient in quantity to supply the demand
for that purpose. Until enough silver shall
have been coined for the use of the import
ing merchants silver coin will not sink to
the value of silver bullion, and during that
period the Bland bill will cause no great
monetary disturbance.
The depreciation of coined silver to the
commercial value of the metal would be
somewhat impeded by the operation of the
Resumption law, which is to go into effect
on the LIST of January, 1879. The Treasury
would be likely to pay out silver for the
greenbacks first offered for redemption, and
continue to do so while its supply Of silver
coin lasted. AS this process would absorb
rs much paper money as it would release OF
silver it would cause no imitation of
the currency, and the value Of coined
silver would not perceptibly fall As soon
as the government stock OF silver,
which will be moderate on January
l, was exhausted, there would be
WHO ruSu ZOE JIG SOiu IL 1AAC
Treasury. This would be an inevitable
consequence of the foresight that gold will
rise to high premium with the progress OF
the silver coinage. Before the middle of
January had passed the whole gold re-
serve of the government would be exhausted
by the universal scramble to profit by the
difference in the value Of the two metals
This result can be prevented only by
repeal of the Resumption act, and as the
experiment of specie payments would in
evitably break down before the end of
January if the Bland bill should become
law, we presume Secretary Sherman himself
would favor repeal OF the Resumption law
with such prospect before him. The pas
sage of the Silver bill Therefore involves an
indefinite postponement of specie pay
ments. Resumption will not be possible
until the coin reserve OF the government
comes to consist mainly Of silver
In tracing the early operation of the
Bland bill we may lay resumption quite
out Of view as an element Of the calcula-
ton. The Resumption law will inevitably
be repealed if the Silver bill passes, and
the depreciation of silver money will keep
pace with the amount coined without inter-
ruption from large withdrawal Of green
backs As soon as there is silver enough in
circulation to meet the wants Of the i'm
porting merchants the further additions will
swell the volume Of the currency and the
market value Of coiped and uncoined silver
must soon be precisely alike. The govern
ment will then receive only silver from the
customs and all the gold in the country
will Immediately be exported except the
stock held by the Treasury, which will
follow within short period. From lack Of
sufficient silver at first the government will
be compelled to pay out its gold for interest
on the bonds, and this gold will be exported
by the earliest steamers that sail. The re-
monetzation of silver by n law of Congress
will infallibly demonetize gold by law of
trade, and our only standard of value will
be silver.
Now let us consider how the progress
toward this inevitable result will affect the
value of certain kinds Of property. The
deposits in savings banks amount to more
than seven hundred million dollars in
New York, New Jersey and the six New
England States, and the depositors will
lose the difference between the value of the
two metals. We select the savings banks
for illustration because their depositors are
type OF large portion of the creditor class
Of the country. The owners of railroad
bonds, State and city bonds and bank
stocks are not SO largely made up of the
comparatively poor; but still the property
of great portion Of the widows and orphans
in the United States is invested in this kind
of obligations and would be diminished in
precisely the same ratio MS the deposits in
savings banks. To be sure. this reference