New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-15
BrLL ION CFRTIFICATFS got INITIATION

BTII ION CERTIIICiIEN NOT INFLA IION
Imitation of the currency has been resisted
as steadily and strongly hy this journal aS by
any other. In all OF the contests against de-
hauchmcnt and degradation Of the currency
THE TRInUNE has been found among tho fore
most of those who have Contondcd for honest
money rs the only money which docs not cheat
labor But an effort is now seen 20 create
alarm about the proposed issue OF silver bullion
certificates, on the plea that il would either in
fate or degrade the currency.
Respecting quality. it must first be- recog
nizod that certificates promising a certain
amount in gold value can in no way operate
TO cause separation between such certificates
and the gold they represent. \ poorer cur
icncy drives ont better, but two of exactly
the same value do not drive ont each other
Ample supply Of paper representatives OF gold
docs indeed make il possible TO move moro
gold ont IF the country than could otherwise
Lc exported without disaster but causes no
dctcriorlIon and offers no obstacle to the re
turn of gold when commercial balances call
for return.
The prosperity OF the country. II held on a
safe basis. j, the strongest possible guarantee
against dangotuu, OutgccS 81 gold. That pros
pcrity iu,uto> investments OF foreign money
here. and such investments. greatly cNcocoiug
any normal difference between merchandise
export, and imports. tend constantly 20 bring
specie to this country That is tho secret of
large imports Of gold since resumption. \
sound currency and protective tariff have made
the country the most profitable field i'm all the
world for investment Of European capi'al. SO
long rs that j. true. foreign capitalists invest
interest or profit, here instead of employing
them loss poiitahly abroad. Give the country
thoroughly sound currency. and a long step
is taken toward maintaining its prosperity.
If the bullion certificates would not tend 10
part company from gold rs to value what
other harm could they do? The currency
might be- unduly inflated it is said. But when
currency is not dctcrioHtcd in value but
perfectly sound and always equivalent 10 the
gold it represents. s there eyer real danger
Of mere cAccsS? Does not the movement %
prices in such case always guarantee prompt
ly and surely against any really huriul cX.
cess OF circulation? If not then the areu-
mcnt in favor Of sound gold basis currency
has not the force which honest money adyo-
Gates have supposed II will not do TO say
that gold must be kept the basis ON the ground
that prices viii be surely maintained in har-
mony with the worlds prices, and At the same
time 10 say that there may be too much cur
Ioncy Of gold value in circulation, without a
correcting adjustment of prices
Theory has been absolutely of no use in
determining The amount Of sound currency
that any country can employ Therefore il
is that honest money men have opposed an
arbitrary imitation without warrant in the
actual nncdS Of commerce. Changes in pop
ulation. in settlement Of ncW regions. in modes
Of doing business. aud particularly in bank
circulation. alfcci to an extent not theoretically
calcuIablo the amount OF money required. The
bank note is kept in use by the constant in
torest Of the bank No similar interest keeps
gold or certificates or legal tenders in activity
and il may therefore happen that a million in
bank notes may prove moro effective in Scrv-
ing the wants of a particular region than an
addition Of a million TO the general issues Of
certificates. But the return Of thirty six mill
ions bank notes yearly does obviously make
place for at least an equal addition to issues OF
other kinds. The gold value of all silver
bullion available does not appear TO exceed
that sum. Unless the contrary can be shown.
apprehension of undue. increase Of currency
appears unfounded. II is still to be remem.
bercd that increase proportional to population
is not imitation and yearly addition of 3 per
cent to the population would make it probable
that IN addition of forty millions to the cir
culatiOn yearly would not have an initiating
tendency. |
Colonel Richard Iathers DEM, having spoken