New-York tribune., 1886-01-30
SENATOR SHERM4NS SILTER PLAN.

| that when they are paid In the smaller sum tney
can never make one dollar catch another.
| SENATOR SHERMIN'S SITTER PLAN.
The published comments on Senator Sher-
mans silver bill are not very helpful. The
Senator himself, replying to World reporter,
SAYS he thinks the bill 1will maintain silver at
par with gold.n True, but only in subsidiary
character The bill would have no influence
on the bullion market, except as removal OF
the fear of suspension OF purchases might help
a recovery in price. He is also reported as say
ing that " if silver should rise the Government
would gain" 1t would if the certificates were
to be redeemed in bullion, but they are made
redeemable in "coin," and the Senator does not
explain what kind of coin. If in standard silver
dollars, only go cents worth of silver would
now redeem certificates for 100 cents, and
rise in bullion would require say 90 cents
worth of silver to redeem the same certificates.
Certainly it is not in that direction that the
merit of the Senator's plan is to be found.
Mr.. Hewitt says we should have so many sill
yer certificates that gold would be banished
from circ Ilation" But the certificates would
be gold certificates in value, and in use at Gus
tom house. How they would Danish gold Mr..
Hewitt does not explain. Mr.. James says the
bill would help silver producers TO a market. In
that respect, it simply continues the pro-
visions of existing law. Mr.. Bliss thinks there
ia an air of imitation about it," but apparently
overlooks the fact that the initiation would be
stripped of the danger arising from the use OF
deprecated money. The Herald believes it
woulds' flood the country with despicablc and
anomalous apology for a currency" which in
dcates that the bill has thrown the editor into
MYSTERIES In the worst event, it would substi-
tute a better currency for that which we now
have.
That is the only true point Of view. The
measure is not the best conceivable. But it
may be the best attainable; and Mt any rate it is
better than the existing law. 1t clears away
great danger, but it does not profess TO avoid,
first, the drain of gold from the Treasury BY
the purchase of bullion; and, second, the possible
initiation by the issue of an excessive supply of
paper. These dangers exist now, with another
far greater, namely, that gold may be expelled
by the forced Use of cheaper dollar. The
latter danger the Senator aims to sweep ont OF
the way and if he does that and nothing more,
the gain is certainly great.
Holders of 1000 silver dollars could present
them at the Treasury and get bullion certif
Gates for 1000 in gold. Redemption of these
dollars at par in gold will tend to fix their value
in gold 1t makes them essentially subSidi
ary or representative currency, as the half
dollars and quarter dollars are now. At the ut
most $50, 900, 600 now outstanding might be
returned, and a like amount of bullion certiG-
Gates issued. The holder of silver certificates
for $1,000, also, could demand silver dollars |
under the present law. and for the dollars could
get bullion certificates under the new law !
That would soon substitute bullion certificates
for all outstanding silver coin certificates. II |
would clear away the danger of going to a |
silver basis. At the utmost $141, 100000 !
bullion certificates might be issued, instead of |
$9l 900, 900 silver certificates and 50,OO0,000 !
silver dollars now out, and against these the /
Government would hold $219, ,000,0 900 in silver |
coin now worth as bullion at least Sl79 600, 600 !
in gold. NJ increase in the bullion certificates
outstanding would be possible without de-
post of bullion to represent it.
If more bullion certificates were wanted, |
there would be an increase. 1t is not to be dis
gmsed that the danger of paper initiation which
the existing act involves would still remain.
But the paper would represent gold value, and
an excess would not necessarily tend to expel
gold from use. The Treasury now buys
2, 100000 ounces of silver per month"; and
pays in tax receipts, and it would do the same
under Mr. Sherman's bill. 1t Is not to be dis
guised that the danger Of depletion of the gold
reserve by this drain would remain. But now,
if expenditure exceeds the gold revenue, the
Treasury may be obliged to pay out S0-cent
dollars or their equivalent. Under Mr. Sher-
mars bill it would pay out bullion certificates,
worth 100 cents in gold; very different mat
ter. 1t would simply borrow money upon
bullion held, to the extent of its gold value. 1t
might be worth while for the Senator to modify
the last clause of the second section, to which
attention was directed yesterday. If the
bullion certificates were made redeemabe " in
gold or silver coin at the option of the pre-
'enter," the ambiguity involved by the words
I in coin would be removed and the practical
fleet of the measure would be unchanged.
The silver dollar, under this bill, wOnld have
n any case no other than n subsidiary quality;
t would pass, as the paper dollar does, only as
representative of gold.
BEHIND A THIN MASK ,