New-York tribune., 1885-03-23
coin DISLPPEARING.

TT President Cleveland and his secretary OIL
the Treasury have given any attention as yet
to the methods of averting the dangers which
arise from continued coinage of silver, their
conclusions have not been published. 1t is
perbaps natural that both should be much
occupied at present with the offices which are
to be filed, and with the claims OF 0flce-
seekers. But it is proper to remember that the
business of the whole country waits upon the
President, to know what he means to do in the
matter. The prolonged stagnation has a cause
No one can account for it intelligently and
fairly unless he takes into consideration tho
fact that promise to pay dollar of unknown
and unknowable value is not, in any part OF
the world, a satisfactory basis for business.
Men do not want to make contracts reachins
into the future, if they must make the contra ct
now upon a basis of 100 cents in gold TO the
dollar, but may be paid upon basis OF 80 cents
in gold. Nobody is eager to e1pend MS goid
dollars in the purchase of materials and labor
if he has no confidence that he may not be COM
peled to take silver dollars for his products.
1t is commonly said, even by some business
men of capacity, that the people really do not
care about this matter, that the apprehension Is
confined to the newspapers and the phlloso-
pliers. 1t may help these persons to consider
one or two facts of daily experience. Notice
first what sort of money passes from hand 10
hand in this very city. There is a great dea! OF
silver, and a vast proportion OF the payments
daily made are made in silver certificates.
The legal tenders are used of denominations less
than $40, but what has become OF the rest
What has become of all the gold The banks
hold some gold, and some legal tenders; the
Treasury holds some. But, according to the
latest official information, the proportion OF
different kinds of money not an the Treasury or
the National banks, but in the hands OF the
people. is about as follows: Gold, $3OS,OOO,OOO;
standard silver dollars, $4O,O0O,OOO; other
silver of all sorts, $50,000,O00; gold certiti-
Gates S5OOOO,OOO; legal-tender notes,
S24O, 100000; bank notes. $500, O,OOO,OOO; /;
silver certificates, $1OO,OO0,OOO. Out OF
nearly S1,1OO,OOO, of various kinds of
money, the silver dollars are less than one
twenty-ffth, and the silver certificates less
than one tenth. Yet great share OF the pay
ments actually made are made with these small
portions of the aggregate amount of money IN
use. Why is this 4? Can any man give for the
phenomenon any explanation except one 7 Inc
people, the millions, in all their everyday
transactions, stick to all other kinds OF money
whenever they can, and when they must pay
anything, pay out first the sort of money which
they know is of least real value.
Practically, silver and silver notes have
already driven out of free activity and use a
great part of the gold and gold notes, legal
tenders and bank notes now in the hands OF the
people The amount of money kept from
week to week and from month to month by
81 ,OOO, 900 people in pockets and pocketbooks,
in stockings, belts, strong boxes and secret
hiding places is always very large. The people
who hold, hoard or hide money, always prefer
the best they can get. Nobody is caught hoard
ing or hiding standard silver dollar; it is too
clumsy. Nobody is caught hiding silver GER
tifcate ; it is only promise to pay something
of unknown value. But other kinds of money
have been boarded and hidden, and that SO
extensively that less than One-sixth part OF all
the money not in banks or the Treasury is
forced to do more than half the work.
This phenomenon proves the existence OF
distrust so widespread that it cannot fail to
affect business materially. 1t accounts, more
over, for the constant complaint that money is
terribly scarce, in one region or another; the
truth is that $500 100000 of the money in the
hands of the people, more or less, has been
virtually so far withdrawn from use that
$3.50, ,OOO 900 of silver and silver notes do
more than half the work.
President Cleveland does not want to have
the stagnation of business and industry con-
tinue. As soon as he can take time, from the
urgent demands of Ofice-seeB ers, he should
consider the methods of dealing with this
matter, and among them the method suggested
by The TRIBUNE week ago. 1t is possible for
him to do a great deal to rovlve industry and
trade. The longer he delays, the harder he
will find it to overcome the difficulties which
are accommodating, and to bring back gold and
gold notes into free activity as money.