New-York tribune., 1890-07-14
THE PEpUBLICAN SITTER BILL.

The confidence of conservative and business
men in the Republican party has again been
iusfifed By the votes Of Republicans alone
and without single opposing Republican
vote q silver bill has been passed by both
houses which competent tinanciels regard WIN
much satisfaction Even The Financial Chlon-
icle." the ablest business journal OF Demociauc
opinon pronounceS it "a far better bill thah
we ANTICIPATED" and declares that " the new
currency is in quality immoasulahly superior 10
the Old" because distinctly rcdcemable III gold
and having behind it adequate provision fof It's
redemption. Every Democratic Senator ana
Representative who voted at all voted against
this measure, which stops the coinage OF SILVER
and declares anew the solemn Obligation OF inc
United States 10 keep its currency equivalent
TO gold in market value.
The sudden imitation which many expect
from this measure will not come. Beginning
with tbe section relating TO bank redemption
funds it ought to be obvious that this VIII put
not an additional dollar mtO' circulation. II
simoly transfers from one account 10 another on
Treasury books sum which can only be paid
out according TO law, and mist be drawn upon
at the ratio of about 100000 per month aN
bank notes come in for redemption. Inc III
crease and the only increase permitted uhacr
the new law is by issues OF notes against not
more than $500, 600 ounces OF silver III any
month. which at the present pnte would put
out S4.S15. 600 in Il month as a MAXIMUM
wear ago there were S257.1O2.i43 OF silver
certificates in circUlation and are now S29''
903 S2j, an increase OF about S@.4oV'oOo
monthly The difference of : l,4OOoO month
". even if all the silver which the law permits
is purchased and no gold goes out, Is not
imitation at an alarming rate, and the new notes
are immeasurably safer than the certificates oil
which under the old law the issues must nave
been continued.
Next comes the most difficult SIDE OF the
ouestion--will the price of silver rise. permit
ting a larger increase of currency, or VIII the
holding Of silver for rise prevent offerings up
~ the limit of 4. 100000 ounces? Events Will
soon prove It i, probable that foreign prices
will not readily follow speculation in bullion
certificates here in fact on Saturday there WAS
already a difference Of about II cents per
ounce. If silver goes freely into the treasury
ut less than the New-l ork price, that pnce
cannot be sustained, while il silver Is kept back
in order To create and realize higher price. The
ouautitv offered will be less than 1900 600
ounces per month. The Secretary viii oi
course be bound to consider the foreign As well
rs the American market price, and foreign
holders can empty their bullion n'o the Treas
ury through American firms AT only a triie
more than the London pIice hy borrowing Tor
delivery. If the price rises but the quantity
sold falls below 4.500,0 600 ounces. the note eX-
panslon will be cutaicd, and it viii be equally
curtailed if the full quantity is supplied with
out an advance in price.
It is quite likely that soon after the bhl
goes into effect it will bc seen that the gradual
expansion Of currency permitted Is not gong
% answer speculative expectations. In tina,
case sundry spcculations may break down with
ont harm ID legitimate business. The bill has
. decidedly conservative side. Even II silver
coin could 90 to par and yet the full quantity
he purchased. the addition 10 the circulation
would be but -. 500 600 monthly or $1,000
600 more than the addition last year. Prob
abIy the rise will be gradual and checked be-
fore long By increasing production, the MOD
crate addition tJ circulation viii be un>atiS-
! fying TO spectators and partly balanced by
exports Of gold, and industries and commerce
Mil receive some substantial help. The plac-
ticaI workings of the measure may prepare The
yav for useful notifications when Congress
meets again IN December. But aN "A rule imam
clal bills which are passed by Ecpubllcan votes
alone do not turn out badly.