New-York tribune., 1885-03-07
THE SILVER QUESTION.

The Clearing House Committee of the New
York Associated Banks has issued very timely
little pamphlet explaining the position OF the
Clearing House on the silver question. Coming
at time when the possibility of change in the
laws has departed and the country is called
upOn to face for ten months longer the con-
timed operation of the silver act, the pamphlet
pIaces before the business community clearly
the obligations under which the banks are act
ing, and the course which they are compelled to
adopt in protecting the interests of their Gus
toners. The pamphlet reviews the steps taken
by the Clearing House after the adoption of the
silver bill, and the recommendations then made (;
considers briefly the workings of the arrange
ment between the Government and the Clearing
House, points out the fact that the resumption
of coin payments in 1879 was avOwedly OH a
gold basis, and shows that the subsequent issue
of silver dollars was an attempt to change that
basis. Thus 1t remarks:
Three years after that act. the Government. by
the power of its supreme mandate. emitted these
silver dollars of 80 much less relative or intrinsic
vane that it requires SIX of them TO make the com
mercial equivalent of five gold dollars Yet these
Two legal dollars of such disparity In value now
demand entrance into the New-York Clearing
House. and through it into general business. as a
Just measure of property and service throughout
this broad country. upon equal terms. Common
sense and common justice revolt at this demand.
One Of these coins may travel at Its face value
throughout the world. The other-morely con-
yentional token-shrinks into it's inherent capacity
the moment it passes the boundary line of its Gov
ernment Tho two cannot be yoked together for
practical service; they are not interchangeable at
the place of their ISSUE and cannot in the nature of
things be indiscriminatey used in business trans
actions.
After considering the position of the banks
and their duties TO depostors and other GUS
toners, it is urged that the evils of the COM
pulsory silver law can be greatly mitigated by
the manner of its execution, that the new Pres-
dent may be expected to exercise a wise dis
cretion in that respect, and that " there is moth
. ing for the New-YOrk banks to do but main
q tain inviOlately their present agreement with
each other" The President, confronted rs
he is by large majority of his own party who
are hostile to the principles upon which the
New York banks act, will deserve high praise If
he should take the steps which are necessary to
give practical protection against the evils
which the silver act involves.
II would be possible for the Secretary
of the Treasury to protect the gold reserve
by declining to expend. in the redemption of
bonds, that part of the surplus revenue which
from time to time may be invested in accumu-
lating silver. Thus, if there should be a surplus
of 1924. .OOO, 900, and that amount and no more
should be added to the stock OF silver, the Sec
retary of the Treasury might decline to pay out
any OF the gold In the redemption OF bonds,
allowing the silver to accumulate without de-
pleting that part of the reserve by which the
legal tender notes are protected. But this
course would involve an accumulation OF at
least $24, 100000 yearly, and the effect OF con-
tinued issues of the silver certificates would still
have to be met. BY resembling the Treasury
orders which give advantages to those who
take silver certificates over those who take gold