New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-20
THE MONETARY UNCERTdINII.

President Cleveland and his party are at
swords points on the silver question. There
is no longer room to doubt the fact. The
Cabinet is strongly opposed to free coinage.
while the Finance Committee of the Senate
has been framed as if in express intention TO
defeat the Presidents wishes. Antag0nism on
this point is likely to go far and deep Ii
may even mean disruption Of the party before
the next Congressional election. 1t is evident
that the President is willing to defer action on
the tariff until the outcome of the silver con-
tr1versy is known.
1t is said that he is ready to compromise.
Statements are published that he will not veto
a free coinage act on any other approved by
the majority of the peoples representatives,,
but will let il become a law without his sigma
ture. This is net in accordance with Prosi-
dent Cleveland's custom in other matters He
usually seeks to control his party, and rarely
if ever fails to use his power when it seems
to him necdful to defeat the majority. Yet
reports of such a nature cannot be lightly
passed. 1t is possible that, in order to secure
his election. pledges were given that he would
not veto any bill which might be passed by
his supporters in both houses of Congress
This course would be in line with the policy
SCme time ago foreShadOwed in Washington
dispatches These reported that the President
was not unwilling to let the silver fanatics try
the practical effect of their scheme. in con-
fidence that the result would powerfully in
cease the opposition to free coinage. ii was
aid then that this would be dangerous policy.
1t is clear now that such policy would be
disastrous. The President should be earnestly
advised net 70 run the risk of a degradation
of the currency to silver basis, even though he
believes it to he only for a time.
The President must be aware that the Treas
ury reserves are still low, and there is little
reason to expect lasting increase. The de-
mand for small notes in the interior cannot be
expected to continue. Receipts Of gold from
Canada will certainly cease whenever the rates
Cbtainable for money are not abnormal, and
particularly whenever doubt arises regarding
the maintenance of gold payments here. If
the President and the Secretary Of the Treas
ury leave il to be inferred that free coinage
bill will be signed and its results tested with
a view of giving people a trial OF the cOnsc
qnences, it is tolerably sure that Canadian sup
plies Of gold will instantly cease. 1t is scarcely
HS'Ns'olS W say iOiSiSH SuPpiSs VI Soiu
in payment for American securities on which
interest and dividends might be paid in silver
are not likely to be large. The situation of the
market for securities is not in any measure
encouraging TO foreign investors. for railway
earnings are declining, while strikes threaten
large increase of expenditures. Industrial
stocks have rapidly advanced for two days. and
yet it is the fact that the Administration is
pledged TO enforce the law against all combina
items in restraint of trade, and such course
will be encouraged by the decision of the
Supreme Court Of Tennessee AGAINST the Whole
sale Grocers' Association, which was held liable
for damages because of the refusal of ordinary
facilities to retail grOceS
If foreigners do not buy stocks it may still
be supposed that imports Of merchandise may
decline. But this would be probable only in
case Of a change of the tariff. The decision
to defer an extra session OF Congress means, of
course, that no action on the tariff is likely to
be taken until January or February at the
earliest. In the mean time the exports Of
products will he governed by the natural laws
of supply and demand while imports arc likely
to be as large a heretofore. II is not easy 70
see how considerable drain of gold from the
Treasury can under such circumstances be
prevented.