New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-03-15
THE DANGER or EXCESS.

If so many silver dollars, or silver certifi-
Gates by their terms redecmable in silver dol
lars. have been thrown into circulation without
depreciation, why may not larger amount?
This question is often asked in one form or an
other. and goes to the root of the whole sub
iect. Since three hundred and iifty-siX millions
have been coined without harm, why may not
more. even 1900, 900 per month, as the Sen
ate bill proposes. or more, without limit, as Mr.
Bland desires?
II is a waste of time to argue with those who
want 10 see the whole business of the country
brought to a silver basis who desire Il wider
can between silver and gold, and hope that
the cheaper metal may drive out the dcarcr,
and give us " cheaper money" 10 some that
is the chief attraction of silver coinage bills
limited or unlimited they are a step toward
placing the business of the country on the
Chinese basis. But they are neither numerous
nor influential enough to shape the policy of
the Government. The great body of business
men realize that it would be a terrible disaster,
and they would not give countcnance to any
coinage of silver whatever il convinced that
the process which ha, been harmless cannot
be continued without harm.
Predictions about this matter have no weight,
for scarcely anybody believed that AZ much as
three hundred and ffty-siX millions of silver
dollars could be coined without parting COM
pany with gold and prccpitating disaster on
the ono hand. or without causing any advance
in the price of silver and bringing permanent
settlement closer on the other. Nothing that
was predicted has happened. No one was right
in his authorizations. Nevertheless it is the
Co..
aS practical men may, whether. dangers are
threatening.
Thus far the silver note has circulated, not
because il was rcdccmablc in silver dollars, but
because il practically was not so redeemed.
Looking back one may easily see that on either
Of many occasions had slight change in cir
cumstancc> compelled Government 10 refuse
gold and give silver on It's notes or other obIl-
cations. there would al once have come a Scpa-
ration in value Tho coins have not been
forced into circulation, beyond the quantity
required by public convenience. Tho notes
have been practically rs good H. legal tenders
and they have N every demand been virtually
redeemed in gold. But it is purely and only
rs a rcpre sentative of gold values that tho CONS
or the notes have circulated.
without redemption being frequently demand
cd. 50 long a, tho volume OF circulation Is not
decidedly in excess Of public wants 20 the
retirement Of bank notes and other changes
have made room for larger ~ of representa-
i've notes without demand for redemption. But
it can hardly be doubted that the limit of cir
culation. in proportion to population or IN pro-
portion 10 the business of the country, is
close az hand. For some years past 1t has been
impossible for the Treasury 10 keep moro cur
roncy than about certain amount per capita
in active circulation. an excess flowing back
10 the Treasury rapidly. This il j. which
ju.'iiics ~oriou, apprchcnsons when an in
crease Of coinage from -. 900, 600 to $780,
600 per month is proposed and even moro
when II is demanded that silver shall be coined
and silver notes issued without limit. The
reservoir seems full. for il has been running
over. To force twice a. much water into it
would threaten great disaster.