New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-09
THE EFFLCrOF COMPROMISE.


What practical results will follow the pro-
posed compromises OF the Silver Bill ! Sena-
tors Chris.iancy, Blaine and others propose the
coinage of a silver dollar of greater weight
than the "dollar of the fathers" The silver
men, on the other hand, arc represented as
ready to vote for an amendment excluding the
free coinage feature, and giving the prohts 10
the Government only. There is very htt'e
reason TO believe that these changes VIII De
made. but their practical effect, if made, is not
unna,urally q matter of much interest and IN
quiry.
No change that is yet proposed in the weight
of the dollar To be coined would have much
effect for good or evil, except as to the pros
pect of decentralization by other countries
Obviously, the larger we make the dollar, ana
the lower we value the silver therein, the
stronger will be the impulse to stop
silver coinage by nations of the Latin
Union. The more costly dollar will be more
likely to depress the value of silver bullion
abroad than the less costly, though the
robbery of creditors would not at the
outset appear as great. But there would
be robbery enough in any case contemplated.
One Senator wants dollar of 40 grains.
be taken for more than 90 cents in gold, when
il is known that it can no longer circulate as
n mere token coinage, is not legal-tender,
and is not received at Government Offices. A
dollar of 434 grains is also proposed. Ii the
bullion price of silver should neither rise nor
fail, this coin would be worth about 80 cents
gold. 1t will hardly pay to dishonor ourselves
for five cents. In order to have equal value
with gold, the silver dollar at present must
contain about 45S grains. No such coinage is
to be expected, nor would such coinage be de-
sirable.
Free coinage of deprecated metal involves
rascally job. 1t is true that change OF
prices may soon depress the purchasing power
of legal-tendcr coin to its bullion value, but
for a time all sellers will be robbed, and all
laborers will be robbed. All persons receiv-
ing fixed incomes and all creditors whose
debts are not by specific contract payable in
GOLD, will be plundercd still longer. I-imita-
ton of the coinage does not meet the difficulty.
Hence, it is thought that the bill may possibly
be so changed that Government only shall de-
post bullion and take coin mt the Mint. 1t
does not seem likely that this change will
finally be made. The jobbers, whose chief
stimulus is the hope of great profits will re-
sst with zeal. Silver manacs, whose belief is
that hostile Secretary may make it impossi-
BILE to get silver into general circulation, show
disposition to resist. Except as they may
prefer half loaf to no bread, regulators
will resist. But if the bill should pass i'll this
shape. what would be the eilectf
Ii Is somewhat hastily assumed tina, the bill
would then be imperative and impotent. at
least for many months. Friends and foes alike
have fallen into this error. Two elements seem
to be overlooked by those who reason thus;
the world will anticipate that the Treasury
will finally have to pay out silver, and the
Resumption Bill will be defeated. Ii is true
that the Secretary can for year or more con-
tnuc to coin silver, boarding it in the Treas
ury, and receiving for duties and paying out
for interest gold only. But this process
could not be indefinitely prolonged. Sooner
or later, the Secretary would be forced to
use his growing store OF silver instead
of his depleted stock of gold. Also, 1t would
become impossible for him to sell bonds ut
par in gold, either for resumption or FOR fund
ing. Bonds would come back in very large
amounts from Europe, unless the decline i'll
price here should keep pace with any decline
there. Gold would be drawn out of the c0un-
try or boarded, in surprising amounts. The
Treasury would be completely crippled in
every preparation for resumption, unless the
accumulation of silver dollars could be
considered n preparation. But all these
results would be discounted in the markets.
IL would become known that the Treasury
would be unable to redeem paper In gold,
and that it must pay out silver dollars of
90 cents each, or fail to redeem at all. The
sure effect would be depreciation of the paper
currency and rapid rise in the premium on
gold, rifhom any Of the temporary reticf to be
gaiaed IN expansion Of currency. The very
hardest of hard times must be expected III that
case. The effect would be worse because
nobody could guess bow much the paper cur
rency might depreciate, nor what disasters
might follow futile attempt to resume
specie payments with store mainly of silver.
The bill without free coinage is bill to make
the uncertainty greater and more deadly than
ever The bill with free coinage is bill to
secure repudiatiOn and to swindlc creditors
and investors.