New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-07-08
NEW WORK DAILY TRIBUNE, FRIDAY, JULY s, 1881

eminent should undertake to deliver gold coin
in exchange for silver coin on demand.
The response of the Bank of England was
quite as favorable as could have been expected
The bank was really to increase it's store of
silver in its reserves, provided Monetary
Union independently of Great Britain under
took to open mints to the unrestricted coinage
of silver at the ratio of 1917 to / of gold
But it quickly appeared that the United States
had been misunderstood that this country
was only ready to coin freely up to the
limit of its own annual production, as it
can do now under the provisions of the exist
ing Coinage act. This reservation on the part
of the American delegates was unavoidable
Neither the Secretary of State nor the Presi-
dent himself, whatever their desires, had any
authority to undertake to coin beyond the
limit of $4,O00,O0O per month"; fixed in the
existing law. Nor would the President or the
Secretary of State have been likely to author
ize any stipulation that this country should
coin in excess of its own production of silver
even if that production should fall short of the
legal maximum. Hence there was at first a
disposition to dismiss the whole project as a
failure. In its financial article of yesterday
however, The London Times says:
is reported that the variation the proposal to
to the effect that they would coin freely up to the limit
of their own annual production, they prac
caly permitted to do by the Bland silver BILL has been
looked on with more favor by France and the other
tries of the Latin Convention than previously and that
on this understanding regards the American coupled
with The undertakings by Germany, India Bank
of England France and the other countries of the Latin
convention and probably Holland will undertake to be
bi-metalc.
Such proposal by the United States H. we believe, be-
fore the Conference rather before the chief Powers
interested who negotiating directly behind the Con
ference. The present suspense is becoming in
furious to the exchange business with the East
1t seems probable that, upon further cOnsd-
Grafton, this project also will be abandoned as
impracticabe. The United States, whatever
its DESIRES cannot undertake for a term of
years to coin to the full amount of it's pro-
dnctiOn of silver If the representatives of
this country have made such Il proposition in
the Conference, as The london Times seems to
suppose, they have acted without due regard
to the fiscal necessities of the Government,
which may possibly compel it to refuse to
enter into such an agreement. Under existing
law, large discretion is intrusted to the See
rotary of the Treasury, who can coin as much
az $4,OOO,OOO of silver, or as little as
T2,0O0,0o0 per month, according to his judy
ment of the necessities of the Treasury. 1t
may well be doubted whether any interna-
tiOnal agreement by which the Secretary of
the Treasury might he deprived of his d.cre-
tionary power for the protection of che public
credit, would be ratified by the Senate.
On the other hand, the proposed agreement
is obviously inadequate for the protection of
other nations. Germany, according to the
latest proposition, would only undertake To
suspend for five years its sales of silver. and
to substitute a small amount of silver for
small gold coins in circulation. Italy, accord
ing to the statement of delegate on Wcdnes-
day, insisted that Germany must make silver
an unlimited legal tender before Italy could
afford to join in unlimited silver coinage
This delegate hit the nail ON the head Until
the nations which regulate the commercial cx-
changes can afford to make silver an unlm-
tied legal tender other nations will find it cx-
ceedingly dangerous to undertake unlimited
silver coinage. Great Britain shows no dispo-
sition to do this, nor does Germany depart
from its position that its commercial
relations with England must govern it's ac-
ceptance of silver as a LEGAL tender. In short,
the question does not seem any nearer % solu-
ton than it was year ago. But the Difficult
ties in the way of solution are now more
clearly understood and that, perhaps, is gain
enough to justify the holding OF the Con
ference.