New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-15
SILVER INSTEAD or GOLD.

The Administration has broken down in the
one matter on which 1t seemed to deserve pub
lie confidence. Ii came in with brave promises
IN protect the country from the danger OF silver
coinage. But in little more than four months
II has begun to force the banks to take silver
in Clearing House payments, and the Treasurer
comes here to inform them that Govern
ment cannot continue to pay in gold the Inter
est on the public debt, and the other obliga-
tons which it is indisputably bound to pay IN
gold, unless they will help it out by taking, IN
exchange for gold, stuff which the treasurer
officially declares worthless as an asset. Yet
il is not really unable. The truth is
that the Administration refuses to
use powers that it possesses for the
protection of the public credit 1t has at COM
mand remedies which have been publicly
pointed out, but declines to employ them.
Particularly, it has the power to sell bonds to
any amount In order to comply with the re-
ouiremcnts Of the Resumption Act. and TO main
tain an adequate redemption fund. The ap-
peal to the banks is declaration that 1t Will
not use that power. Unhappily the facts COM
pel the conclusion that the Administration Is
governed in this matter not by public but by
ps ty reasons. 1t is not willing, at the very
outset, to make open war upon that large
majority of Democrats who favor payment OF
debts in sill yer. The banks arc asked TO take
the load off the Administration, so that the
marty in power may be less discreditcd.
1t does not seem possible to justify the course
which the banks of this city have taken. That
they have believed it the wIsest and
safest course open to them may
be readily admitted. 1t was repre-
sented to them that, by this temporary aid
to the Treasury, difficulty could be bridged
over, and that in all probability Congress would
afford relief next winter But is it probable
that the silver fanatics will be in haste to sur
render their victory when they see it within
their graspi They have long felt that the
chief, and indeed almost the only
obstacle to their success, was the
united resistance OF the New-YOrk banks to
any debasement of the currency. But il
the banks are understood as admitting that they
can resist no more, will the ASSISTANTS therefore
make haste to fly from the field they have won
Can the banks resist any futurei and more
directly fatal concession with as strong array
of reason as they could have resisted the APP
peal on Mondayf Will it not be said with
great force that they have committed them
selves to the theory that 1t Is their duty to help
the Government out OF its trouble without ask
ing whether it has used or compelling it to use
the powers which under the law it has Once
so committed are not the banks under still
greater obligation, when greater emerg
ency arises. to take any course that
may then be necdful to sniff the response
bihty from the Treasury Is it not the
fact that the banks confess q weakness in their
own position Either they have some power
to refuse to receive silver as a satisfaction of
gold Dues or they have not that power. If they
have not, all their past course has been without
defence If any one supposes that the banks
will be stronger hereafter, because they take
into their vaults $40, 100000 or $20,000,000
of unavailable funds instead Of gold, he is
surely mistaken. The chances are that they
will be found hereafter neither so united in
purpose nor so strong in the confidence of the
depositOrs as they were before this step was
taken.
The banks of New-York have known that
upon them rested the grave responsibility of
defending the rights of their dcpOsitors and
the safety Of commerce. They have realized
that the money they held belonged not to them,
but to the commercial community, and had
come to them largely because they were sup
posed to be resolved and able to maintain gold
payments. How long will it stay with them If
that belief is destroyed by their course Had
they steadily refused to take the load off the
Administration it seems clear that the Admin
istration would have been obliged, however
reluctantly. to use the powers necessary to de-