New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-26
THE BOOuERI.NG,

The silver men forced through bib Oi the
utmost importance, after an all-nlght session
in one House and without any debate in the
other. 1t serves them right If they get just
what they do not want. For the sake of do
ing a dishonest thing they passed bill which
defeats their aims, and politically cuts their
| throatS Ii ought to be vetoed, for the sake
of decency duty and public honor. But we
shall shed no tears if the throat-cuting
process be completed by passing the bill
in spite of all objections. They had
their warning. Often we have showed that ii
silver dollars were made receivable for GUS
toms, they would go back into the Treasury
ms fast as they could be paid out. In the Senate,
m amendment was offered which would have
made the bill little more honest, and far
more effective, namely, the one providing that
the silver should not be taken for customs
nor paid out for interest. This amendment
was tossed into the wastcbaskct as trick OF
public creditors TO get their pay. Wei, III
order to be dishonest, they have passed bill
which makes possible contraction of legal
tenders at the rate of nearly tIrelre millions q
month. and yet would put no silver into the
hands of the people or the reserves of the
banks.
TO what extent Secretary Sherman may see
Git to use his vast power, if the bill passes, is
another matter. 1t is as well to know what
power he will then have. He can coin four
millions a month TO pay interest i'll silver,
as long as he can pay in gold, would be II wan
ton act of bad faith. The silver will 20 out
in place Of lcgal-tcnders, and hence will be
worth TO those who get il, about % cents, Is
compared with gold. But men who have
duties to pay can use il in place OF 100 cents
in gold, and hence can pay 30 or 99'2 cents
for if. The month of March, then, sees ST.
OOO, 900 in silver flow out instead of legal
tenders, and flow back into the Treasury in
stead of gold. At the end of the month, the
Treasury has the silver, but the people have
not the legal-cnders In April, $4,000
newly coined, and as much more taken for
duties i'm March, can be paid out. and SS,-
DOC, 900 in lcgal-tcnders stick in the Treas
ury. But again the silver flows back in pay
ment of duties. in May, the Treasury can
nav out 81 100000 newly coined silver, and
So. 900 600 taken in April for duties Thus
ST., 100000 in lcgal-tendcrs stick i'll the
Treasury waiting for resumption-day. But
the silver coin again flows back in payment
of duties for the month.
II happens that the Treasury cannot pay out
more than about $12 100000 per month for
all other expenses except interest. 1t happens,
also, that nearly an equal sum must he paid
in each month for duties, in gold or silver.
After May, then, the Treasury cannot pay out
more silver for all purposes except interest
than il takes in for duties, and the silver
aftcrward coined must perf0rce stay in the
Treasury. Meanwhile $12,000,O00 in silver
goes its trelcss round, serving for all pay
ments except for interest, and for all receipts
from customs. But the people have to pay
their other taxes in lcgal-tenders, because men
who pay duties can afford to give more for
silver than men who have only legal
TO pay. When will this cease? When
gold ceases to command any PREMIUM
but not sooner. Until then legal-tcndcrs
may 60 into the Treasury at the rate of about
ST., 100000 per month. and sleep there
while the silver goes out and comes in again.
EIGHT months NAV thus absorb 500, 900. 900
in lecal-tenders besides $4,000 900 in March
and SIS, 600, 900 in April in all, sos, 100000
virtually retired before the date OF resumption.
With no use for gold. and a smart scarcity Of
greenbacks, the premium on gold might quick
" vanish if banking were not free. If it does,
we have resumption more quickly than the
hated Resumption Act would bring it. If the
banks, in spite of the contraction of green
backs, should venture to increase their circu-
latIon, this would also be gall and NORWOOD
to the great statesmen who created the Silver
Bill, and whose next aim is to abolish bank
notes. 1t would be quite entertaining if their
boomerang legislation should bring resumption
within six months, and substitution of bank
notes for legal-tenders at the rate of $4,000
900 a month for a year or two thereafter.
Will it be said that this is outrageous: the