New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-02-09
THE CURREYCY QUESTION.

There are two hundred and forty-seven mill
ions Of silver certificates in circulation besides
ahout sixty millions of standard dollars and
Rfty-three millions of subsidiary silver Thus
in all. two hundred and sixty millions now
.circuIate as representing gold, because the sill
yer notes or coins are practically tedeemable
in gold as far as the people want them re-
deemed at all, and because they are vOlun-
tarly accepted as equivalent to gold in pur-
chasing power. But in case Of any disturb
ance, leading people to prefer gold,s legal ten
ders or bank notes in payments, the existing
process of redemption for silver or silver notes
might prove entirely inadequate. In the
larger payments to or by the Treasury the
silver could not be conveniently or economical
ly used. The other payments Of taxes would
not take it off the hands Of the people rapidly
and the chance Of its depreciation to the level
Of silver bullion would be great
This is the real nature Of the silver difficulty
which increases as the volume Of the possibly
depreciable currency in circulation grows every
year. As long as the redemption through pay
ment Of taxes Is sufficient, there is no visible
distinction between paper notes promising sill
YER and paper notes promising gold. But it
Is not at all impossible that such distinction
may suddenly arise. No extended explana-
ton of the consequences Of such o. separation
between the two parts Of the currency in cir
culation is now necessary. Every one can at
least sec that those consequences would be
serious.
The possibility Of such a separation is
brought nearer by every change which tends
to send gold out Of the country or out of actual
use. Speculation which tends to prevent ex-
ports Of important products, and therefore to
cause exports of specie; mismanagement which
tends TO create dStrust among foreign invest
ors in American railroad or other corporations,
and therefore 10 cause withdrawal Of capital
from this country, these are among the more
obvious causes Of possible disturbance. Thus
far these and other Influences have entirely
failed TO interrupt the general acquiescence In
the exchangeability OF silver and gold, and that
fact gives much ground for confidence.
But II is not TO be denied that this is a
legacy Of danger which Democratic Admin
istration will leave 10 Presidentelect Har
rison and his associates, and IL may require all
the wisdom OF the wisest statesmen TO avoid
trouble hereafter. The outgoing Administra-
ton has done not thing to lessen but much
20 increase the danger. Only one hundred and
eleven millions Of silver certificates were In
use when President Cleveland took the oath
Of Office. and none Of them were small notes
Now q large proportion Of two hundred and
forty-seven millions outstanding are OF the
smaller denominations. The change was pro
vided for In legislation proposed by close po-
litical associates Of President Cleveland, who
doubtless expected that IL would do good. But
possibly it has only put the evil further OIL
while In no way diminishing IL.
There would be incomparably less danger
OF any disturbance II It were known that silver
or silver certificates could az all times be ex-
changed for gold or legal tenders at the Treas
ury or at Sub-Treasures throughout the coun-
try. No law requires such exchange, but no
law expressly prevents II, and II would seem
20 be quite within the discretion Of the Secre-
,ary of the Treasury to offer It as convenience
70 the people. Remembering that the only
source Of danger, Mt least for the present, in
respect to the silver circulation is that there
may come separation between the two kinds
of currency, IL will DO seen that assurance Of
exchangesbility at the Treasury would 90 far
30 prevent such disturbance. In fact, there
Is no apparent reason why many millions more
of silver certificates or coins might not be taken
and kept in circulation, II there existed no APP
prehonson that these would cease to have the
same purchasing power with the rest OF the
currency. Redemption Of few millions would
then indicate at any time when the amount Of
such currency in use had become relatively too
large, and would also remove the excess from
| the circulation.
Colonel Fellows made no objection 10 the mo-