The Vancouver independent. (Vancouver, W.T. [Wash.]) 1875-1910, 1879-02-06
Effects Of Resumption.

Assuming then that it is already sue
cessful, we would invite attention to the
novel and interesting experiment upon
which the United States have entered.
They will have IL future four different
kinds of money-gold and silver, both
equally legal tender for all amounts, OF
different values in the market, but de-
clared to be equal by the law; green
backs, or treasury notes, and notes OF
the national banks. BY law it seems
that the banks are not bound to keep
coin reserve. They must, indeed, main
tain the exchangeahility Of their notes,
but, apparently the conditions are con-
piled with i -rcenbacEa are given for
the notes. Now, there IL no danger that
the banks will avail themselves to escape
the cost of sufficient reserve. The
New York establishments will avoid the
error, but the country banks are very
likely to fall into it. In the case of our
own Joint stock banks we know how
they throw upon Threadneedle street the
duty of maintaining a reserve; and the
temptation of the American banks will
be equally strong to shift the burden on
to the Treasury. Practically, therefore,
the metallic reserve of the Union will
be kept by the Treasury, and it may
well be questioned whether 81 i 100000
will suffice The Bank Of France keeps
nearly three times as much, and even
the Bank of England, which is disposed
to run thugs fine. holds a large reserve.
Upon the United States Treasury will
fall every drain. in spite Of the present
marked success Of the resumption policy,
there is an evident danger that in times
of crisis and difficulty, the reserve ac-
cumulated will be found to be too small,
and that the Government will he reduced
to straits to avoid bankruptcy.
There is also another danger for which,
however, Mr.. Sherman is not respoLsi
bic. The Bland act makes silver Il legal
tender equally viii. gold, yet silver is
worth one-tifth less At present the
metal coined is small, but it is being is
sued from the MINIS at the rate of $780,
600 a month; and in few years, if the
Bland act is not repealed, there will be
an immense mass of it. Plainly, it is
the interest of every one who has a pay
ment to make, to discharge it in silver.
Where l6 or Is shillings will wipe
out debt as well as sovereign, most
people will prefer to give the shil
Tho .,1,,n,.
therefore. it will have "a tendency
to tiisplace gold in internal transactions,
while gold will be sent abroad In this
country, for example, the silver dollars
would not be taken at their nominal
value the gold would. Mr.. Sherman
secs the danger, and he advises Congress
to follow the example of the Latin
Union, and limit the coinage of silver
BY that means silver would have n
g monopoly value, and. would circulate
side by side with gold, which they could
not drive out, for the sufficient reason
that they would not be numerous enough.
But the present Congress is certain to
refuse the request. The matter is not
urgent, because the issue of silver from
the minis is slow and gradual. Before
a very long time, however, the question
will have to be faced. In America, it
is true, the valuation of silver is lower
than in France and the countries which
have adopted the French monetary sys
TEN. The real depreciation of the silver
dollar is, therefore, very much less than
the apparent depreciation still. it is
great. For India it would be a fortu-
nate thing that the result to which we
have been pointing should come about.
The coinage of larger amount of silver
in the United States would certainly
raise it's value considerably, and might
even induce the Latin Union to return
to the double standard.