New-York tribune., 1896-01-30

II
new Treasury notes If those are also to be re-
deemed in gold, but as respects the silver cerui-
Gates and the banknotes, which would come to
be the only current circulation. silver cerui-
Gates would be plenty and cheap, ana everybody
would pay Government taxes In them ana ho'n-
ing else while holding gold and all notes re-
deemable in gold in order to realize the premium.
For that premium would rise rapidly because vi
these conditions and as every S1OOO IN gpiu OF
legal tenders would be worth more than Sl'oVo
in current paper for purposes OF export or inter-
national settlement owners would reaiiZe Il
profit on every sale for export. III the adVancihs
premium gave assurance Of larger pront, they
would continue to hoard the gold or the green
backs. but otherwise they would ship the goid
or sell it for shipment.
Since everybody could get gold bonds by turn
Ing in the lega-tender notes for redemption
while no one could pay them out IN ordihary
transactions without sacrificing the premium on
cold these notes would doubtless be quickly re-
deemed. The Government would speedily pay
ont $500 600 900 in bonds bearing $15OOOOOO or
$40 600 900 interest each year. in order to get
rid of notes which the people want ana WHICH
now save the country from silver Dasls. III
stead. the country would get silver Dasis at
once, and as no gold would 90 into the treasury
for novment of interest it would be Obliged to
buv the gold in opcn market. The rush to get
cold in order to realize the premium or to meet
International demands would quickly exhaust
the gold reserve Of the Treasury ana salaries OF
all employees OF the Government wouid nave "
be paid in silver paper, but every time the "oV-
crnment had occasion to pay interest, OF TIE
|,cost OF its diplomatic or consular or naval ser
vice in foreign countries 1t would have to buy
gold nj such a shave as holders might demand.
premium Of 20 per cent on gold would make
the interest on per cent bonds amount 10 D
pcr cent to the Government, and the premium
would not be likely to stop at that point.
ON one hand there would be great scarcity
of c,rrencv because of the disuse of several hun
drcd millions of gold and legal-tender notes. On
the other hand. al the world would be in hot
haste to rush in its silver and to get for 1t as
soon as possible the gold obialnable for certiii-
Gates, at first at a low premium. France could
send hther SiOO.OOO.OOO in silver in single
month. and this country could send abroad about
500, ,O0O.00O in gold to pay for 1t. France would
have the gold at more or less loss In face value,
but immcasurable gain in strength ana safety
Of National currency. We should have silver
certificates for actual crcuatlon WIN lnllI''iS
urab!c loss in strength and safety Of National
currency and should have to buy the gold from
France or somewhere else whenever II became
necessary to pay interest on the bonds or other
obligations abroad Under such circumstances
II is obvious that tho country would be quite at
the mercy Of the holders Of gold. In event OF
any foreign difficulty it would be entirely at the
mercy Of foreign creditors whose ability to hold
gold and put up the premium whenever the
Government needed a supply OF that metal
would enable them practically to empty the
Treasury at their pleasure. In all commercial
transactions the people Of the United states
would have 10 pay just such exchange IN or
der 10 make settlements abroad as foreign
creditors might please to maintain. In effect,
the foreigner would buy cur products az such
prices as hc might please 70 name, and sell us
his products IN return AZ such prices as lie might
please TO pay. The United States would nave
the worst Of every trade, and would be on the
high road to bankruptcy within single month
after the enactment Of such law.