New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-07-11
RESULTS OF TIE SILVER BILL.

The compromise Silver bill was passed by
the Senate yesterday by party vote OF 39 to
26, though two or three of the Democrats re-
fused to join with their party associates In
opposing measure which appealed to them
much more powerfully than the free-coinage
proposition which was carried through with
hurrah few days ago. The bill thus passed
creates a new financial atmosphere. If all
the trees and plants, the birds and animals,
were suddenly subjected to a radical change
of the atmosphere in which they
lived, it would be question of the high
est importance whether that change would
stimulate and accelerate their growth, perhaps
too much for health. or stunt and kill them
When the vital air which commerce breathes
and by which the life of industry is
sustained, undergoes sudden alteration, all
may with reason be anxious to know what the
effects of the change are to be.
In explaining the report of the Conference
Committee, Senator sherman regretted that
the bill required purchases of silver exceeding
the production in this country. But in one
sense it does not, for 4,5O0,UUO ounces each
month is a little less than the total output last
wear. according to Mr.. Leech's annual report
which made the production OF mines and re-
fneries working on foreign ore 57,OOO,OO0
ounces or Also, 600 per month. The yearly
consumption in the arts might be supplied from
the foreign bullion imported. But the main
fact which the Senator does not make prom
nent is that no purchases are required beyond
the quantity which "may be offered In each
month. at the market price" 1t IS pos
sible that in any month"; or several consecutive
months, the quantity offered at the market
price may be less than $500, 900 ounces. line
Treasury is not required in that case to pllr-
chase the full quantity, either then or In any
succeeding month.
In the absence of any law fixing the mode Oh
determining the market price the Secretary
is obviously required to consider the price IN
one or more foreign markets. III the Market
in New-York is artificially rugged, so that IL
runs higher for month or more than the price
in any foreign market, the Secretary WOULD
have right to pay no more than the average
of American and foreign prices, which would
then be lower than the NewYork price, and
in that case no silver might be offered within
the price he could pay. Any speculation In
fhis country, tending to lessen the quantity
offered in any month, would by consequence
increase the stock available, and so tend 10
check an advance in price. The operation OF
this provision would seem likely to cause
steadier market and more gradual rise than
has been expected.
The constant withdrawal from other use of
a quantity of silver equal to the entire product
of this country will tend to lift the price and,
rs THE TRIBUNE has often shown, altogether
the more because the bullion is not to be coined.
The danger of decline to silver basis would
seem to be much more remote than 1t has been,
and the notes to be issued are redeemable IN
gold or silver coin" at the discretion OF the
Secretary No Secretary of either party VIII
venture to expose his party to utter destruc-
ton in commercial States by forcing payments
in silver coin when that can be avoided. III
the situation is in that respect safer than IL
has been, the volume of paper circulation re-
mains to be considered. At 81 O4 per ounce,
the present price, the maximum amount OF
notes to be issued in a year would be $685.
100000; with silver at par the maximum
would be S7O,OO0,O 900. The new issues may,
however, fail short of the maximum II silver
is not offered to the full amount
Could this bill put silver to par it would
make available for redemption the Stdnuaru
dollars now in the Treasury. Even an addi-
ton of SIC 900, 900 yearly in notes represent
ing bullion on hand at its gold value would be
in no respect unsafe. But the bill may not
raise silver to par, because it will probably in
crease materially the production of silver in
this and other countries. Within ten years
the production has increased in the United
States alone 2O,OOO,OOO ounces, and in the
whole world 81, 0OOO 900 ounces. What the
increase may be with far greater stimulus
in the American demand no man can predict.