New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-02
SENATOR PADDOCK PERCEIVES FACTS.

SENATOR PADDOCK PERCEIVFS FACTS
Senator Paddock, of Nebraska has been
making some statements regarding the new
tariff and the question OF silver coinage "hlch
merit attention They indicate thai his attl-
tude is now by no means so divergent from the
nolicv of the party as il was during the lasb
Congress, when he voted against the new tarlh
and in favor of the free coinage OF silver IL
does not clearly appear from his present state
monts yvhethor he would now feel called upon
to vote in the same way were the same ques-
tions again presented but he takes care to sub
NIT strong reasons for believing that the acuon
of the Republican majority was not so unWise
nc no presumably believed it when he voted
against that majority.
On the tariff question he says that the work
ings of the new tariff have not been so I'M
favorable as he expected. Since it has been
in operation.n the Senator says, the conditions
have been such as to cause less criticism OF Its
workings than had been anticipated" Inc
depression in the financial world has caused a
curtailment of purchases, and consequently
lower prices than might otherwise have pre-
vailed the Senator thinks, so that the tarh
has not advanced prices to consumers as us
opponents feared. lie reasons that e" II tunes
had been different prices would have been
higher, and something OF this increase WouIu
have been attributed to the Mckinley law"
That is possible, as a good many other con-
lectures are possible. But it is not by any
means clear that there would have been, IN the
manufactured products affected by the tariff,
any advance in prices whatever even IL trade
had been as active as it was one year ago
Moreover, it is the fact that in this country,
though the Senator seems not aware OF 1t, the
volume of business is actually greater than 1t
was in any wear prior to 1890, though not quite
50 great during the first half of 1891 as it was
during the first half of last year.
On the silver question Senator Paddock does
iustice to his own intelligence by recognizing
fairly and frankly one of the greatest objections
to the free-coinage experiment. 1t is not the
only objection, and the Senator may not agree
with the majority of his Republican associates
in hi, Judgment as to other phases OF the ques-
ton. But he appears to admit that free com
age would he dangerous and unwlse, IN the
following statement:
The whole trouble with free coinage adopted simply
BIZ this country, lies in the ia that the men VINO own
the money have an apprehension against it. They be
ueva that il would drive gold out OF the market II
they believe that II they tmid about the PROPOSE
on TO make silver part OF the standard II they lose
confidence and begin to hoard the gold they have tha
alone will bring bad effects. ,
In these remarks the Senator recognizes the
fact that the opinion of the financial world
whether il will be well founded or not, must
have much to do with the success or lll-SucceSs
If free coinage If the monied institutions GO
not believe that gold payments could be main
tanned with free coinage of silver, then rs a
consequence of that measure credits would con-
tract. gold would be withdrawn from active
usc and the currency in circulation would in
effect be enormously contracted. The acton
Of individual capitalists who have the Same lear
would operate precisely in the same way. Thou
sands of individuals would remove their gold
from the country, or buy exchange on London
or lock ND their gold in special deposits or IN
vaults under their private control. No man can
deny that great number Of those who control
the available capital of the country do regard
the free coinage of silver with intense apple-
hension That apprehension is in itself Suli-
cont reason against the adoption Of change
50 full Of danger Even though many capital
lists and financial institutions should be disposed
to meet the experiment with measure OF nope
fulness vet the large number of Others who
profoundly dstrust it would act each for HIM
self. and their withdrawal Of gold and contiac-
ton of credits would almost inevitably insure
unfavorable results. 1t is to the credit OF the
Senator that he recognizes these facts, even
though he is thus giving sound reason for OPP
posing the coarse which he himself took Whlle
i'm the So. to