New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-24
ApINInNS OF RANRERS.


yvIon somo If the most competent and ex-
ner;e,ioed bankers differ widely in their opln-
;ons ,ooard;np the need of further silver coin
aoe ar of anv silver coinage whatever, it can
not he called strange that differences OF opinion
are found among the people not largely eA-
perienced in finance. Among the expressions
of opinion by bankers and other business
men published in THE TRIBUNE it may De
noticed that some favored the continued com
age of silver and in one or two cases the TACT
that no harm had yet resulted from the act OF
loot vear WAS given as reason for believing
that continued or further coinage Of silver
might be harmless Such misapprehensions OF
the nature of the Act of 1890 do indeed seem
strange particularly in men whose daily dutieS
wouId naturally lead them to examine with
more than usual care the provisions OF such
measure.
The Act of 1890 did not provide for con-
timed coinage of silver but expressly required
that the coinage of $1,000 600 per month under
nrevious enactments should be stopped July l.
1891, except upon conditions distinctly specl-
fed The Secretary of the Treasury is author
lied to coin into standard dollars only SO much
of the bullion purchased as he may belleVe IL
necessary to coin in order to provide Tor the
REDEMPTION of notes outstanding. The intent
Of the act was to put an end to the further
coming of useless standard dollars, and to Gre
ate instead new form of the circulating medi-
um namely, Treasury notes issued against the
silver bullion purchased, but redeemable In gold
or silver coin. Under these circumstances, the
temporary proongatiOn of the coinage at the
rate of 81, COO 600 per month for no more than
a year was regarded with Indifference, because
it was felt that another years addition 10 the
nile of useless coins would do no harm. Ii is
necessary to realize this fact in order TO under
stand that the last years experience gives no
satisfactory evidence whether continued coinage
of the silver purchased does harm or not.
But the strangest error is to suppose that
the purchase of $500, 600 ounces of silver, and
the issue of new Treasury notes against the
bullion thus purchased, is in monetary sense
or in influence upon the currency equivalent
to the coinage of S4,500,000 worth OF silver
bullion each month. How any banker or prac-
teal business man can entertain such an I'M
preston it is exceedingly difficult to see. The
issue of the new notes, the faith of the Gov
eminent being pledged to redeem them in gold
if desired, is in fact nothing more than an add-
| ton of legal-tender notes to the previous legal
| tender circulation, except that the additional
| notes have behind them pile of silver bullion
as security for their ultimate redemption. The
provision of the Silver Act that the Treasury
should maintain the parity of gold and silver in
use was intended to satisfy the financial world
| that the new notes would be, as they have
been thus far redeemed in gold on demand.
The coinage of silver dollars out of the bull
ion purchased would mean different thing.
| The difference is not only in quantity but in
kind of addition to the circulation If the
bullion costs 81 per ounce, the bullion pur-
chased each month would be coined into
$4,000 900 standard silver dollars a difference
of $1,000, 600 per month. But the greater
difference is that the standard silver dollars and
the certificates which can be issued against such
dollars deposited are not by terms Of law re-
deemable in gold or exchangeable for gold, and
form a part of the currency which is liable to
depreciate at any time when the Government
may fail to maintain the parity of gold and sill
yer in use. The increase of that part of the
currency was in fact a cause of great financial
distrust prior to last year. The Act of 1890
stopped that increase, and substituted an addi-
ton of notes expressly redeemable in gold, and
thereby gave reasonable assurance to intelligent
fnanciers that the Government did not intend
further to increase the obstacles in the way OF
maintaining its currency on a gold basis. II
is hard to see how such a change can be mis-
understood by competent bankers, or how the
fact that such change has not caused harm car
by such bankers be given as reason for sup
posing that continued or even increased coinage
Of silver would not cause harm.