Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-11-24
NATIONAL FINANCES.

abstract of the forthcoming report of the
Secretary Of the Treasury indicates, sup
posing it to be trustworthy, that Mr. Sher-
man is preparing to call the attention of
Congress to these questions strongly. The
problems which viii demand prompt legis
ative action are, the refunding of that
part of the public debt which natures next
year, and the silver question. The ulti-
mate disposition of the United States notes
is indeed matter which ought long since
to have been settled, but public opinion
has thus far been in so immature con-
dition with regard TO it that il has not
been practicable to raise the necessary sup
| port for measures of sound finance. The
circumstance that these notes at present
constitute a convenient and apparently safe
currency has obsepred the fact that their
status is illegitimate, and that their con.
tinued circulation involves danger to the
country which may at any time become
imminent. We entertain hopes that under
General Garield's administration this ques,
ton may be brought forward in such a
way as to secure a scientific settlement,
! for there can be ne question that the
/ President-eleet possesses a clearer under,
standing oi financial principles than any
of his immediate preaeeesseFa in office
have had. while at the same hae he is
believed q have the courage Of hia con.
viehons, Whether the people are yet
sufficiently instructed IN these questions
- accept she measures WAloA aeghs 10 be
introduced. remains se Ae seen. but one
ssroag consideration IN favor og an adjust.
men: 81 the paper circulation On rational
foundations viii be found in the constant
danger Of demagegio tamperiug with the
currency SO long as it is under the control
OF Congress. In regard to the funding
operations, it is now intimated that Secre-
tary Sherman will recommend the issue
of a long bond at low rate of interest ;
So. or possibly even 3 per cent The
great success of the funding measures
which have already been accomplished,
and the prosperous condition of the coun-
try generally, will no doubt enforce such
recommendation very powerfully. A
time has apparently been reached, in
fact, when a still further reduction of
the rate of interest paid by the Gov
eminent may be made, and when
United States securities may be put upon
the same level as the English Consols.
The important saving of interest to be
secured by the proposed issue of long
term bond constitutes its justification, and
it may safely be assumed that inasmuch
as the rate of interest is not likely to fall
below three per cent in the future, the
length the bonds run cannot affect the
public interest A long bond, moreover,
is necessity when the interest is so low,
since men will not invest in such securities
unless the range of the investment as to
time can be regarded as a set-off to the
smallness of its earnings. 1t is needless
to point out that such bond once issued
would act as an entering wedge for the
refunding of the whole debt at similarly
low rate of interest, and that an operation
of that magnitude would prove incalcula-
bly, beneficial to the country.
We come next to the silver question, the
Importance of which is increasing every
month with the growth of the great hoard
of silver coin and bullion in the Treasury
vaults. Thus Ear $50, 600, O00 of silver
dollars have been absorbed, and the DISPOSE
ton to seek the new coin has again
diminished. 1t is possible no doubt to
force several millions more into circulation.
1t could be conveyed into the wage fund
of the country, and worked off upon the
laboring classes. That is where such
money is sure to find its way eventually,
and if it should become generally circu-
lated it would unquestionably produce a
rise In prices. The operation of an
inferior currency under such conditions
is no secret. If the Treasury goes on coin
ing silver and selling gold time must
come when the silver will take the place Of
the gold, and when it will no longer be pos.
sibie to keep the gold in circulation. This
is not conjectural, but certain, and should
it occur nothing can be surer than the
degradation of the national currency to the
silver standard, and the establishment
of the premium on gold. No greater
calamity could befall the country than
this. 1t would in few weeks
sweep enormous sums of national saw
ings out OF existence. 1t would
cut down the purchasing power of
the peoples earnings ten, fifteen or twenty
per cent. It would necessitate the raising
of all prices. 1t would destroy the bal
ance of our exchange with Europe 1t
would reduce the United States to the
financial level of China and India. To
suppose that the people would be willing
to submit to so suicidal and pernicious a
policy is clearly out of the question. The
utter futility of the silver bill has now
been completely demonstrated by two
years of experiment. The Republican
party will henceforth be held responsible
for the conduct of the national finances,
and it cannot afford to temporize with this
question. The duty of the hour is plain.
The silver bill ought to be repealed with
out further loss OF time. II specie pay.
ments are to be maintained, the repeal of
that bill is indispensable, and we trust
that Mr.. Sherman will urge this course
with all the weight of his authority and
experience. He indeed cannot afford to
go out of office with an uncertain record
on this question, and his reputation as a
financier depends upon the emphasis OF
his resistance to any further dallying with
the silver fantasy.
MR. FAIRS SEAT.
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