New-York tribune., 1886-08-23
PAPER INITIATION THREA TENED.

Indications are not wanting tnat inc ploschV
Administration, having by the aid OF KcpuD
licans in Congress escaped any restraint from
the repudiatng fanatics of It's party, now pro-
poses to use all its power over the finances III
order to help its party in the coming elecnon.
In Democratic journals, business ls sald 10 nave
been wonderfully revived by the act OF the
Administration. Calls for bonds, which THIS
same Administration protested 1t should hoU oc
required TO make are now SAID to nave peeh
made With mo,c thar human wisdom, ana Ihcir
continuance is r1omiscd until after the elec-
tions. The crcum stance is net menuoned thaV
the same conditions would have compelled any
Administration at this time to issue several
calls for the sinking fund, as the only mode OF
.vo;dino n dangerous contraction of the circula-
tion. Apparently, too, those members OF Con-
cross who denounced the Administration and
those who supported it are agreed In telling
their constituents that this is time OF great
prosperity, and that the increasing number OF
GELS in the cel-pots is all due to the party Ill
powe. Meanwhile, being nd OF congressional
restraint, the Administration seems inclined 10
make few laws for itself, and particularly to
cary into effect the financial plan embodlcd
bv Representative Scott in bill which both
bouscs refused 10 consider. Whatever its
merits OF dement's, the plan seems to have met
with favor in Administration circles, 1or steps
arc now foreshadowcd to carry 1T into effect
Thus one of the most remarkable statements
that has ever appeared in reputable journal
dc, oted to honest money and the public 1aith'
WAS found on Saturday in The financial Chron-
icle which said of the small silver note pro-
vision:
The ruth is that coners upon Department the power
of making every silver dollars now lying III the
Treasury and be compelled to coin In the future
available What is of far more Importance 1t puts
out Of the reach Of any combination OF circumstances he
embarrassment of Treasury again for years to come
The Chronicle then goes on to explain that
the Administration can retire $S4,ooo,ooo
of So legal tenders, issuing notes OF large de-
nominations instead and can also retire about
$50 600 900 of So bank dotcs, which it Is sup
poscd the Controller would have authority to
,cplacc with bank notes Of larger dcnomina-
tiops. and thus it can make room for %l65,-
OCO 600 new silver certificates of 81, 81 and
So each, which it is supposed will remove all
nossibility of embarrassment for a long time.
The power of the Secretary to substitute
small silver notes for legal tenders now in use,
by the process described, will be angily denied
Nv Col as SOCd slS IL dSSCHlplCS,
| withdrawn or curtailcd before the issue OF the
rev small notes has been i'll progress moc thai
month. it, as is now reported, these notes will
not be ready for issue before November. What
power can be found in existing statutes fot
| changing the circulation of the national banks
| without their consent it is hard to say pos
sibly Mr. Garland could ind that or any othc.
dc.iicd authority. But the country has some
right to know whether it is intended to initiate
the paper speculation to the extent of $780,
100000 without any warrant of law whatever
The small notes cannot be issued, in obcdl-
ence to any act of Congress, except upon actual
deposits of standard dollars in the Treasury
by holders of such dollars. Any issue upor
pretended or constructive deposits of coin wi.
be an evasion Of the law. The practical cffcc
Of such an evasion Of the law would be t
produce an imitation of the currency far more
dangerous than that which the country s.
stouly resisted and at last defeated years ago
and it would be entirely in harmony with tn,
history of the Democratic party, it must be az
mittcd, if such an imitation should be brough
upon us as the first fruits of Democratic
Presidential victory. But those who sincclcl!
and intclligcntly care for the public faith, an
for the maintenance of sound currency vii
not be content to see the country tread that
road to ruin without their p otest.