New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-02-14

vocates of outdoor relief now have the floor.
What have they to offer in reply to this report
THE TROUBLE ABOUT MONEY.
"With such enormous reserves, how there
" be danger Surely monetary system is safe,
"when the Treasury holds $445,OOO,OOO In
cash, and the New York banks hold SILL
"OOO, 900 more, Such is the reasoning of some
men who are commonly respected for good
sense in business matters. Are they rightf
To begin with, the Treasury does not hold
S445, 900, 900 in cash of any or all kinds In
that sum are included 100000, 900 of United
States notes, or other equivalent forms OF cur
rency. These notes in the hands of Government
are in no sense currency. They are simply re-
deemed promises to pay-mere memoranda that
Government once did borrow and since las paid
certain sums. 1t can borrow again, by issuing
the same promises, it is true. But power to Dor
row money is not money. Paper promises of
Government do not become currency in any
sense until they go into the hands of somebody
who holds them against the Government, as
evidence of its debt to him.
Hence it is also clear that the
certificates held by the banks must
also be deducted, or else the gold held by the
Treasury to which those certificates give title.
These, again, are only evidences of 4 debt-but
of debt not yet paid. The holder of legal
tender certificate can at any moment demand
legal tenders for it, and, without leaving the
counter, can then demand gold for his legal
tenders. Refusal to pay would be an act OF
bankruptcy. The $17,080,0O0 legal-tender
certificates outstanding on Saturday, therefore,
gave holders title to ST., 100000 gold in the
Treasury, precisely as much as the $50, POI, 44O
gold certificates then outstanding gave title to-
the gold which, under the law, the Treasury is,
bound to hold as a sacred deposit for their re-
demption. Thus 500, 100000 of the Govern
ment's gold is actually owned by the
holders of these certificates. great
part Of the gold reported as held by
the banks consists of these certit-
Gates to gold in the Treasury, which, therefore,
has left, of gold not thus owned by holders OF
outstanding certificates, only about $122,-
100000
Then as to the silver certificates, they give
title TO property which nobody will
take--the silver dollars. But they
also give a power of paying debts to
the Treasury, and are used in paying customs
and taxes. In ordinary circumstances they cir
culate freely. Let any alarm arise and these
notes would go into the Treasury insteadOf gold
with astonishing rapidity. Hence these, too, are
debts which the Government can, and in any
emergency will, be compelled to pay in gold.
On Saturday there were $96,939,271 of the
silver certificates out. And the Government
owned only 1922, 100000 gold for the redemp-
ton of these and the gal-tendcrs.
Still, where is the dangerP Men are glad to
get this paper; in fact, it goes into circulation
because they prefer it to coin. But when an
emergency comes, what then 7 Let us suppose
that England's business in Egypt and the danger
of q possible Mussulman uprising in India
should cause large demands for gold. We can
not send cold certificates or legal tenders !; still
less silver certificates The actual gold must
co. primarily from the banks, let us
say At present, reserves are enormous
and there is no apprehension But drain of
gold would cause it to be drawn from the Treas
ury. The amount of gold owned by the Treas
ury might thus be quickly reduced below
500, 700, 900. Now it does not matter how
unreasoning an apprehension is, if it exists.
Should an apprehension spring up that Gov
eminent might not be able or disposed to
pay gold on demand much longer, is it not GER
tain that legal-tenders and certificates would
then be sent in for payment in large amountf
The New-York banks for instance, own
1873, 200, 900 legal-tenders If they begin to
apprehend that gold may not always be forth
coming, how quickly they will demand it for
their notes Because they have to settle with
Europe, and Europe will not take paper prom
Uses, but must have gold 1t would not be cow
ardice, it would not even be an unpatriotic act;
the supreme duty of the banks Is to be able at
an instants notice to pay gold to their creditors
who have to settle with foreigners. Now the
plain fact is that the Government has outstand-
ing $196, 900, I'll in certificates and 100000
900 of legal-tenders, payable on demand, and
the only money it has that it can pay with, in
any emergency, is about 5000 100000 gold.
------------------
series of lectures First Aid to the Injureds
is being given for the benefit of newly appointed
policemen series of lectures on Conservatism
In the Use of the Club" would perhaps to cOnsid-
erable extent obviate the necessity for laid to the
injured"
Even in this Congress Mr.. Reagan finds small su5
port for his interstate commerce" form of Com.