The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1893-02-18
ELKTON, FEBRUARY IS, 1898.
THE SILVER SITUATION.

ELKTON, FEBRUARY IS, 1898.
TIE SILVER5SITUATION.
Congress having apparently declined
to pass any remedial legislation IN
reference to the financial emergency
that confronts the country, and seeming
ly having arrayed itself in supper: OF
debased currency, Senator Sherman
has offered an amendment 10 the
Sundry Civil Appropriation blll.authorlz
ing the Secretary Of the Treasury should
the emergency arise, to sell bonds, for
the purpose OF maintaining the parity OF
gold and legal tender notes.
If the S45o,ooo,ooo of silver pur-
chased by the government under the
operation of the Silver Purchase Act
was disposed of to-day at its market
value the exchange would entail loss
10 the government of over $50, 600, GOO.
To that extent has silver deprecated
under Congressional sanction. The
situation is one of the utmost gravity
to the United States. Europe
views it with probable alarm,
and steadily calls upon US for gold in
settlement Of trade differences. She
refuses to take our silver except at its
real value, and she declines any longer
to buy securities, fearful that the hour
is impending when our supply OF gold
shall be exhausted. She is observing
the "bird in the hand is worth two in
the bush" policy. She will take no
chance. The true metal is her
ultimatum. And SO from week to
week cur stock OF gold has steadily
diminished until now it has practically
reached the reserve level Of SIoo,oo,-
ooo-which is held in the Treasury for
the express purpose of redeeming out
standing legal tender notes whenever
they may be presented. Public conf
dence has already been moved. To
draw upon the reserve would precipl-
tate crisis. At once our ability or
intention to maintain the gold standard
would be openly Questioned, and stimuli
taneously we would stand before the
world the cvowed advocates of seventy
cent "dollar."
1t was unquestionably to avoid such |
a contingency that the New York
banks last week voluntarily met the
foreign demand for gold by furnishing
the Treasury with S6,ooo,ooo IN specie
taking in exchange legal tenders for
whose redemption the reserve was
created. BY this means the further
depletion of the Treasury was arrested.
BY this action, also, the banks demon
straed, in the strongest possible way,
ttfter confidence in the ability of the
government 10 maintain its gold stand
ard. But while this wise and patriotic
movement has done much to relieve
the situation of immediate danger, it is
at least a temporary expedient. The
great menace yet comforts US and |
until it is efectually removed We must
bear the responsibility of sustaining
financial policy at once perilous and
dishonest.
While good lawyers says the Wash
ington correspondent of the Philadel-
phia Ledger who have examined the
question believe the Resumption act |
grants authority to sell bonds to main
tain specie payments, it is undoubtedly |
true that act was passed with SPECIAL
reference to the condition ofthe country |
al the time and that it was not intended |
that the grant OF authority to issue
bonds was intended to be continued |
beyond the specific purpose which
called it into existence. 1t IS therefore |
wise and desirable that the question
involved should be definitely deter
mined fy Congress at this time so that
the Secretary of the Treasury should |
have the means and the undisputed |
authority to preserve the public credit
and protect the business interests of the |
country in any emergency. Senator
herman has Geen giving this matter
much attention since It was demon
strated that no relief could be expected |
in a direct way from the present Con,
gress. He has erous doubts whether
the next Congress will give the desired |
relief, or, if it should, that relief will
come until forced by imminent
disaster. Ii the export of gold con-
tinues it must follow inevitably, unless
the Treasury can use extraordinary
means to protect itself that we will be
lett with silver alone, and that pre-
roi,1m will be he ced uDon cold