New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-24
T.ryJNC rOP THE NEEDY


The composition of the currency III actual
circulation outside the Treasury January l.
when il wa, grc;fer than ever before. was IN
substance as follows: Gold and gold certili-
cate, five hundred and iifty-iivc millions: SiI-
yer and silver certificates and notes, four hun
dred and ffty-siX and onc-half millions; green
backs. three hundred and fory-thmc ana one
half millions. and bank notes, one hundred and
seventy -four millions total one thousand fvc
hundred and twcnty-nne millions. The bank
notes are Icdcch1ablc III grccnbacitS, ana the
faith of the l'nird States j. 80 pledged by re-
heated statutes for the redemption oi green
backs in gold that failure 50 to redeem them on
demand would dIu>c a commercial conVulSlon
Yet those who advocate free coinage of silver
profc,s 10 believe that il they could have their
way the currency would be greatly expanded
and prices would rise, and all the people in
trouble would be lifted out. If those who he
licvc this. and urge free coinage for that rca-
son only, could see the situation exactly as 1t
is, without prejudice or error, they would be
frantic in their opposition 10 the measure. For
il would violently contract the currency, so
that it would be harder to pay debts or to
escape bankruptcy than it has been for long
time.
The first effect would be 10 render any holder
of gold or gold certificates unwilling to part
with that form OF money. Whoever had either
voud pay out anything else rather than the
cold. not merdy because anticipating high
urcmium on gold but because in any market
that sort of money would serve for every pur
pose. while for many purposes other forms of
money would not This alone would take from
,bn, d,,fi tc
amount. and that almost instantly.
Free coinage would not result in any speedy
or large increase of silver circulation. No one
would want to take the silver dollars away ;
bulk. inconvenience, and the cost and risk of
transportation would prevent. But notes or
certificates against the silver could not be i'm
mehiatey issued. for it takes time to prepare
them. Ii was nearly month after the last
Silver Act wen; into effect before the new
notes Of convenient denominations for general
use could be supplied, and in that case the
Treasury had previously been Fastening it,
preparations for some weeks after the act had
passed and before il went into effect. \ month
Of strngency is long enough to push many into
bankruptcy.
But the legal tenders also would be held in
preference to notes or certificates payable in
silver. because the faith of the Government is
pledged 10 redeem them in gold. Those who
could get legal tenders would be likely to for
ward them to the Treasury III order to get gold
for them. This would cause a comparative
scarcity of that sort of circulation also since
many banks and traders and other persons
would be quietly Withdrawing greenbackS from
active employment. Naturally bank notes would
4 md ppIpmnfinu Sn "A
order to get the legal tenders, and with them
the gold Thus a second part OF the circula-
ton. about five hundred and seventeen millions
in amount, would retain only qualified free
dom of movement, while the larger part. five