New-York tribune., 1886-07-31

The snail silver noIo- provision ha> been re-
timed in modified tom IN the Sandy CNl
hl. and j. likely Ia 20 Ia ;hc President - II
stands, unless the House otciiicc~ the hll IN
obstinate adherence to the original clause. ~
it now stands the clause reads:
And tho SECRETARY Of Treasury h'r,ny authorlr''
ana required to issuc cfiln,a, IA denominations o.
one iao and dollars and uc silver orlnai'. herein
zcd sali receivable i'dcenablc ANT payable 100
Ike MANNER and for Ike puiosc- provided Tor sm'"r c'f
tncao, by Of February - ~77. 'nttd An act "
nihor, the coinage tc standard silver dollar and 20 D.
store It's lcsal tender clra't' and denominations ~ onr
two and n.c may issued ia l'u OF SILVER o'rilh Al
Of larger cnonnA 10 the Treasury or ia oI'hnpc There
io upon presentation hy the holders and to That extent SAD
cuun,A,s OF larger determination shall De- Led AMI ~
suoyod.
In view of the probable failure of Conglc,,
10 pass any resolution regarding the surplus,
tbs small notes provision Is likely 10 be- the
only change III the currency Icsulllng from al
the debates and di-puungs TIN, year. sen
.ltor, lslvc amended it 80 that majority oi
them consider il harmless and there are Wash
iuyton reports that the Treasury DcpaItmt mt
l,yors the clause as il stands But this l.
scarcely consistent with the declared opinion Of
the Secretary and Treasurer about silver ccltI-
ncatc, generally. Assuming that this provision
and no other rcguding silver may become law,
if |. c,,y to foIcscc that it Will not IN any way
help the Department.
Ultimately the ANAL notes must di>placc coin.
They cannot bc issued without deposit of coins
or fine surrender Of other silver certificates OF
the certificates now III the hands of the people
and the banks, so, 100000 are OF $40 or so
each, and only $ZO,OOO,OOO of the larger demon
nations, ~ that exchange Of the larger note,
is not likely to be important. In the main,
the proposed small notes will be Issued upon
dcpo,its of silver dollars, and il Is therefore
inferred that they will 20 into circulation only
bv displacement of dollars now in use.
But that depends some what upon the regulation,
of the Department. If any person having
cl.ims against Government Is permitted 10 call
for standard dollus, and then, without actually
receiving or removing than, 10 demand small
notes for the coins thus constuctiycly deposited,
a large amount of small notes may for time
bc thrust into circulation, while the return o.
thc coin from circulation, though = urc, would
bc rather slow For Il time such an addition Ia
fine circulation Of small denominations might
have all the effects of serious imitation il
sudden and unhealthy Use IN prices might re
sul,. AitcrwaId the COINS no longer used IN
circulation would gradually return Ia the Treas
ury. and then II contraction and fail of prices
would naturally follow. These changes would
not be- for the benefit OF producers consumers,
and would be particularly injurious TO the work
ing people.
IL would Dc in the power of the Secretary of
the Treasury To prevent them. To great extent
at least, by requiring that actual and not con-
stiuctivc deposits Of dollars should he male be
fore any more certificates should be issued. No
law h.ls designed 10 provide Tor the direct issue
of certificates by the Treasury, except III cX-
change for coins in actual use by the people.
There is reason in this distinction. The amount
of coins which the people take into circulation
and use, il may be presumed, is i'll some measure
needed. The substitution of paper for these
coins initiates the currency no more than 1t WAS
inflated before. But almost indie ii mite amount
of paper, and particularly of paper small notes,
can be thrust into circulation if the Treasury
peases to issue them, without requiring actual