New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-06
A CURRENCY THAT is SOUND.

It is worth something to have the fact de-
monstratcd, before Congress assemblies to en-
body its theories in new laws that under the
laws as they have stood, even in time OF the
greatest strain, the paper currency of the Ma
ton is as good as gold. AT the moment it is
even little better than gold, where there are
many hands to be paid or considerable ship
ments to make The highest premium said to
have been paid by any of those who have
bought part of the gold now on its way hithcr
across the ocean is half of l per cent, but
many have paid more than that premium for
currency, and some have paid as much as 2
per cent For some days gold has been paid
out somewhat freely by many instead OF cur
rcncy because the paper more scarce and
hard to get and for some purposes could be
used where gold could not. 1t would be mis-
take to infer that difference in ultimate value
is expressed by these actions. They mean only
that paper currency has been shipped away or
boarded away to such an extent that at the
moment it is more urgently demanded than the
gold which it represents. But the experience
comes Just in time to demonstrate before every
body that the paper issues under eXlstlng laws
are as good as gold.
In time OF unusual anxiety dHu StidIH S"Nh
demonstration ought to be of substantial
service. Confidence is the one thing wanted,
and as respects the money that we have, and
the laws under which we now live, this demon
stra;ion NAV well 90 far to restore confidence.
Changes of law are apprehended which might
do incalculablc mischief. But if it were GER
tain that the laws would not be changed, there
is no reason why the country should not be
prosperous AS it was under the very same laws
last October. Facts are often extremely UNI
comfortable neighbors for theories, which fare
as the carthen pot that came into collision with
the pot of iron But the practical people OF
this country. who care not much for theory,
hut strongly desire to know what will bring
back prosperity, will not be Indifferent to the
proof that the paper circulated under existing
laws is as good as gold
Distrust and apprehension are at the bottom
of the prevalent troubles, no doubt. But the
question remains whether the cause is distrust
of the currency and of the laws as they stand
or distyust of changes proposed. Millions have
been drawing money from banks and boarding
IT, The scarcity of currency is proof that they
have been boarding the paper rather than the
gold. One can put 500 bill between
the leaves OF "a family dido OF ut'OHdi.
but cannot hide the same sum in coin as easily
or as safely. The banks have had strong
vaults, and so usually have preferred to keep
the money which in any contingency Will have
full value in settlements with other countries
But when they have paid out paper to millions
of depositols who have hidden it, suddenly IL
appears that the paper is not merely equal to
the coin in common estimation, whether for
current use or for boarding, but has special
uses and conveniences which make it more
urgently demanded.
The laws under which the people enjoyed
two full years of unexsmplcd prosperity are
not rightly called the causes of public alarm.
But men have definite and incontcstablc reason
for apprehension when they see factories and
mills and shops closing in every direction.
People cannot afford t. manufacture large
quantities of goods with the prospect that while
the work is in progress. or before buyers of
the goods can distribute them to customers,
cheaper goods will be admitted through open
custom houses. If men still doubt what is the
chief cause Of disorder let them consider can
didly whether under the circumstances now
existing they would put their whole resources
into the production of goods. to be sold months
hence. Then let them think whether the mills
and shops would not be busy again within a
week if it were certain that the laws in force
last October would continue in force for years
10 come.