New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-31
UUlT 4 SILTER BASIS MEMS.

,rhore arc ncrsons who consider II absurd TO
fe,r that the country will fall to a silver basis.
Others. who realize that the thing Is possible DO
no, see how and therefore they contrive to
bring about the very result they FEAR. Inc
thing in question Is not at all one OF theory
about which men may dispute indefinitely Ii Is
simply Il change Of fact. which will be deter
mined absolutely by the opinion and action OF
men in business on both sides Of the ocean.
TN, first STEP Of course, would bc the estab-
lishmcnt Of premium on gold Whenever goa
becomes 50 scarce. either through expectation
ar through such boarding AZ has taken ont OF
thc Treasury S3o.OOOo0 in January which mas
mt gone abroad nor into III" banks. somebody
who wants gold may pay SlOl In paper FOR 800
IN gold This is not yet change OF pasis' ph'
only Il loss ~ basis; instead Of being worm the
gold II promises the paper becomes worth soie-
what l,.,s But the moment premium appears
all holders Of gold will try To get H. ana ah'ci-
nate that II may increase and VIII therefore
hold their gold In tn" hope Of realizing an III
crcasc This necessarily tends To swideh WIN,
drawal II all gold from active clrcula'ioh anu
II Is obvious enough that the Treasury wouid DE-
quickly compelled 10 pay out the last dohar anu
ounc, of gold II has. or else 10 rcf'is" rreihp-
ton II notes cXccptn. In silver IA" "Nla"s'oh
Of the gold reserve might come almost IN II o'E.
b,-.au.r the Treasury holds IN excess II goi'
certificates outstanding only about s'",o"'o"o
both nf coin and bullion. ana the N'w-lorh
hanks alone hold nearly douhl" that amount OF
legal tenders rcdccmiblc in gold.
Should the Treasury decline 10 redeem notes
exc,pt I'm silver. the premium on gold wouid
naturally rise with rapdy II Is Impossible
"a say how far It might rise within any given
time That would depend upon the extent OF
foreign Withdrawals ~ capital from this co'lii'
try and upon the speculative disposition of the
people 10 realize profits by m advance In the
nr.r,iuiu There are some who reason tlll'. rs
| In. crrrnh1rls ia not dcprccite much Tor Il
vcar after they were first issued 80 the cur
,,pcv nnv I'm use would not But the iirst ISSUE
| -, local tenders was ~ small amount ana only
syc 900 ono by the lat Of July. 1852 and besides
thcy gave the people for the first time Il legal
tender paper which many did not at one" OK
| n.ct ia dcprrciatc AT all The notes. moreover.
| wcr, rc4iccmablc In gold. and were expected To
| he redeemed ~ soon the war endeL Inc
uoucr now outstanding Is In volume thousand
| millions and the people have learned by years
of loss AMI suffering that II Is liable To depr'ci'
oto greatly II not kept rc,lcemable. II Is legally
roJeeuable I'm silver coin now worth about ~
| cont. ON the dollar. SO that II payment In gold
| shnuJ sion there would be no assurance mat
| his papcr would ever he rc,lecmublc except In
silver And II redeemed only In silver. II would
he worth no more than silver coin.
| such currency might quickly dcpreciate so
far that men would give 81 In paper for 81 In
cold. Between | per cent and 100 per cent
there would be no rational stopping point for
the premium no point at which It's rise ought
:, n. arrested short Of the difference In marker
value between gold and silver bullion when
the time comes that redemption in gold has en-
,ircIv ceased and the premium on gold mounts
| toward the difference between gold and silver
bullion. then the currency will have no other
than a silver basis. No man can tell how
ourkly that change might come after gold re-
| demuiion had once ceased. II Is not question
| of theory but one If actual payments In the
market by those who have paper and need gold
| 10 those who are holding the gold for the high
| est premium they can get. and who know that
the premium has no reasonable stopping point
short Of the difference between the two metals.
Under such circumstances 1t IL NOT I'm the least
improbable that the paper currency OF the
| United States within single month after re-
dcmpton In gold had ceased. might come 10
have no greater value than the silver bullion
| which alone could be- obtained for 1t M the
| TREASURY