New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-26
DEMOCRACY BEARS FRUIT.

Not every thorn has its rose. But there is
some small compensation for the financial
distress which the country has been called to
endure. The country knows what the imam
cial wisdom of the Democratic party amounts
to. at last. For twenty years Dem ocratc
statesmen have been saying, "Give Us
"chance, and you shall see wise legislation"
Tn the so-called Funding bill, we have the
lovely flower and in its consequences the ripe
fruit, of Democratic wisdom. Or rather-let us
be iust!-we can dimly imagine what the ripe
fruit would be if we had no Republican Ad-
mnistratiOn to stop the mischief by buying
bonds. Congress finished its part, and fully
manifested it's wisdom, when it gave 1000
National banks the strongest possible reason
for suddenly retiring 5000, 100000 OF circula-
ton. Measure, if possible, the losses and dis
asters. the shock to the public credit, and the
blow to individual enterprise, which have
already resulted from the retirement of about
ten millions of circulation then multiply that
result Inv twenty, and we shall have some faint
idea of the practical fruits of Democratic
craftsmanship, as applied to the solution Of
financial questions.
Republican Secretary Of the Treasury has
interfered, to save the country from immedi-
ate experience of the full consequences of
Democratic legislation. For the moment, pur-
chases of bonds will serve to postpone part of
| the effects of violent contraction. Democratic
laweiyers, with some lunatics of both parties,
| imagine that the Government Is engaged In a
| struggle with the banks. Mr.. Sherman is not
| a fool. He knows perfectly well, if some Con-
| oressmen and editors do not, that the Govern
ment ia utterly powerless to resist, for any length
of time, if the banks conclude to surrender cir
culation. The utmost that it can do is to
render the contraction of currency less disas-
trous to the business interests of the country.
| This he seeks to do by expanding in the pur-
! chase Of bonds the surplus revenues which
| may be expected for some months to come.
| The money paid in for redemption of notes,
the Treasury is obliged to have on hand for
that purpose, and cannot use in any other
way. 1t cannot be spent in buying bonds
and at the same time retained for redemption
| of notes as they come in. Hence the power of
the Secretary is limited. Whatever power he
| has under the law, he uses, but he has
| no power ut all to make new laws for the pro-
lection of the country against Democratic stu
piiity. IL he were engaged, as some d0lts
| imagine, in an attempt to crush or coerce the
banks, he would be making an effort foolish
| enough and hopeless enough even for DEM
ocratic Congressman-and what more can pos
sibly be saidf Acting within their rights
under the law, the banks have infinitely more
power than any Secretary of the Treasury
would have in an attempt which no law EN-
powers him to make. Secretary Sherman is
making SI honest effort to mitigate the imme.
d;ata ~. aenuencaa of Democratic idiocv that
| is all II the Funding bill becomes law Mr..
Sherman has too much sense to fancy that the
surrender of currency can be stopped.
1t is supposed by the Democratic donkey,
and by such Republicans as look to him for
| wisdom, that contraction will cease as soon as
the Funding bill has been signed. Deposit OF
notes for reduction of circulation win cease,
but that is all. The banks which do not choose