New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-16
THE SILVER L1JT.
irony.

MI UeOISe y. OOc, III HIS ui>CusSiuH VI Ue
silver question at the Bankers Convention on
Thursday, dwelt earnestly upon one objection
| to the existing law The accumulation OF silver
| not used for any commercial purpose, and not
required for the redemption OF new Treasury
notes which are in fact redeemed in gold, has
| not in reality the effect of a legitimate demand
| for the metal, but operates as constant menace
over the market. 1t is not possible to avoid
| some apprehension that this enormous mass of
metal, already about SAIL, 100000 in market
value, may at most critical time be forced
upon the market or else into circulation in place
of gold The constant increase OF this accumu-
lation renders investors apprhenSve, hinders the
development OF industries and trade, and yet
fails to sustain the market price of silver, which
has been lower during the last week than it was
at any time last year, either before or after
the enactment of the new law.
If this measure was adopted under the pressure
of an urgent demand from silver-producing
States for the sole purpose of sustaining the price
of silver bullion, and if it nevertheless fails
in practice to accomplish that object, Mr.. Coe
and those who hold with him urge that the
sooner the law requiring purchases of silver bull
ion is repealed the better. Then the silver
bullion would 90 abroad, and would help to pay
for products purchased from other countries, and
it would not accumulate month by month"; form
ing a constantly increasing menace to trade and
industry, and an ever-increasing load to deppss
the price of bullion. So far the reasoning has
much force it must be admitted but it proceeds
upon the assumption that the last years expert
ence gives a fair and satisfactory test of the
influence of purchases of silver bullion upon the
market price.
The answer deserves attentive and candid
consideration. 1t was suggested by Secretary
Foster in his aetter to the Bankers Convention
Therein he urges that the price OF silver bullion
has been unduly depressed during the last year
by the importation of large quantities OF silver,
these imports having been invited by the high
price established in the New-lo market
little before the purchases under the new law
began. If there had been no such importations
it is reasoned that perhaps the price of bullion
would have been permanently maintained, ii
not at the figures then quoted, at least at some
higher price than has since been realized The
fact that there have been considerable imports
OF silver is undeniable. The question is whether
these have been SO large as to account for the
depression in prices actually witnessed. 1t is
also questionable whether similar or possibly
larger imports must not be expected, if at any
time the price Of bullion should be artiflcially
advanced in this country through purchases for
Government account.
The conclusion to which the fair mind is led
is that the workings Of this act have not been
sufficiently tested as yet to determine with GER
tanty what its merits and dement's are 1t is
not quite clear yet whether its operation will
in the end depress rather than advance the price
of bullion, as respects the American supply and
demand alone. Neither is it quito certain yet
whether moderate advance in the price, in the
markets of this country as compared with those
of other countries, will not always and inevitably
bring to the United States enough silver to cause
a depression OF the price here and an equaliza
ton Of the price with that in other countries.
In view of the fact that great multitude of
people arc passionatey anxious to have silver
used as far as possible for monetary purposes, it
il questionable whether change of the law is
advisable until there has been longer and more
satisfactory test Of its workings.