New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-06-08
"DJ1NOND CUT DIAMOND"

Some people suppose that " Greystone has
captured Mr.. Warner; that the Samson OF silver
has been shorn and crippled by the De,ilah OF
Wall Street. Mr.. a. j. Warner now proposes
TO suspend the coinage of silver dollars But,
though he is careful to explain through W ash
ington dispatches that he has never conferred
with Mr.. Manning on the subject, he Is also
careful not to deny that he has conferred with
Mr. Tiden Mr. Warmers scheme is put for
ward as the carefully matured device of Demo-
cratic leaders to escape, on the one hand, the
fatal consequences of silver coinage. and on the
other hand, fatal disagreement within the
party. In compromise, somebody is usually
cheated. But the assumption that Mr. Warner
mas been Over-reached in this business does not
seem to have much foundation.
Limited coinage is to be abandoned, but in
stead we are offered unlimited imitation. The
soft-mOney Democrats may well look win
favor On a scheme under which there would be
absolutely no limit to the silver notes that
might be issued. 1t is not proposed to issue on
deposits of American bullion only all the silver
in Europe could be brought to the Treasury
also 1t would be merely question of price.
And il would need no more money than Mr..
Tilden himself can command, so TO manipulate
the silver market in London as to force the
United States to pay an art fetal price, in certiii-
Gates issued, for all silver deposited. But II
no silver should come here from abroad, the
supply from mines of this country would add
$40, 200, 900 yearly, more or less, To the volume
of paper circulation. Mr.. MaDning's effort to
protect the Treasury against excessive Issue
and use of silver certificates has been commend
able But the bullion certificates would be Ill
like manner receivable for taxes. 1t Is not dliil-
cult to see that the Treasury would soon cease
to receive gold enough TO pay interest on Its
bonds.
To gentlemen of Mr.. Warmers views, this
would be glorious triumph. They have per-
sstenty contended that the Government was
not bound to pay any other than silver dol
lars" and that the "rObDery OF the people Is
the greater and the more inexcusable If gold Is
paid when silver is very much cheaper BE it
noticed that there is no provision for selling or
recoining 100000 silver dollars already
coined These would remain legal tender,
and mostly in the Treasury. ii compelled to
pay silver at all, the Treasury would be COM
PEELED to pay out these dollars" no matter
what their market value might then be. For
there is no authority To Issue bullion certificates
except upon deposits of bullion payments by
the Treasury, it would have to make III the sort
of money on hand. Thus it does not appear
that the sO-caled compromise among Demo-
cratic politicians would save the country from
any calamity. Probably it would not even de-
fer the calamity which threatens. When the
Government cannot collect anything but silver,
or silver certificates, it will soon have to pay
silver. The issue of bullion certificates against
all silver that might be deposited " ould bring
that time very near. The silver men VINO favor
Mr. Warmers plan are considerably more
sbrewd than some of the Wall Street men who
approve it,
The provision for recoinage of half dollars is
mere twaddle. Subsidiary coins, within the
limits of their use as such, pass current without
any regard to their intrinsic value. But it is
one of the most significant features OF the
scheme that it would give the Secretary of the
Treasury power to redeem bullion certificates
in silver bullion or in gold, at his option.
There would be a fine opportunity to operate
profitably in London, for any one who could
get Mr. Manning to redeem " in lawful money"
the bullion certificates presented. But this is
only an incident; the opportunity to plnnder
the Government runs through the whole scheme.
for bullion at its market price at the time of
issue, and that they shall be redeemed in
bullion at its market price at the time of re-
demption, requires the Government TO pay the
difference whenever bullion falls. With
800, O00,0 900 of certificates out, any combina-
ton which could depress the price OF bullion 10
pei cent could require the Government to pay
back to the holders the same bullion they had
deposited, and $40 100000 more in bullion or
in gold. Naturally, the next step would be TO
@bull" silver for month"; to restore the old
price, to deposit the bullion again, and to get
certificates for it at the old rate. The same
pleasing operation could then be repeated. The
men who move up or down at pleasure the
market for stocks amounting to
81, 600, 100000. if this measure should be en-
acted, would find an easier and safer occupa-
ton. If the United States Treasury ought to
be turned into milch-cOw for the benefit of
good Democratic spectators, this seems to be
well-conceived measure-from the Greystone"
point of view. And il it is well to force pay