New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-13
THE POSSIBILITIES.

II Mr. Bryan's election is conceivable. the
election of Congress ready TO support the
whole PopOcratic scheme is equally possible
The business world is bound to judge the scheme
as a whole with all the parts that are seriously
considered by It's supporters What, then. be-
comes of the pretencc that silver will rise to
parity with gold because of the greatly in
creased demand for it or the additional work
il will have TO do? Gold would cease to circu-
late as money within a very short time after
such an election small premium would suf
flee to make every holder hoard it as far as he
possibly could. in expectation of the higher pre-
MUM to come There is about 500, 100000 of
gold coin ard gold certificates In circulation
which would vanish at once. and it is asserted
that the demand for silver 10 take its place
would raise the price Of the white metal. But
there would be no such demand, because the
bankers and others holding gold as n reserve
would still hold it. and the actual circulation Is
now almost exclusively Of paper.
Ii is said that prices would rise, and so would
compel an increase of circulating medium in or
der 10 perform the same work. Possibly, II II
were not for the prostration of business, which
would come even before Mr.. Bryan could be
inaugurated and could call his Congress to-
gethe-. Even with the prospect of higher
prices men in all sorts of business would ma
themselves unable to move a step beyond i'm
mediate necessities because of the Withdrawal
of confidence and the curtailment of loans, since
10 one would care TO lend dollar not knowing
what sort Of a dollar he would get back. Inc
banks in all cities would be obliged to protect
themselves by issuing Clearing House ccrtiii-
Gates and these would serve as circulation Tor
a time at the chief centres Of commerce. but
with millions of men having gold obligations to
meet and no prospect Of getting the gold, ex-
cept by paying premium the number OF fail
ures would rapidly increase and the prices or
goods would rise
The next STEP as soon as Mr.. Bryan could
get Congress together. would be a new issue of
greenbacks redeemable in gold or silver al the
option Of the Government. with the repeal or
the tax which prevents issues Of notes by state
banks Then. indeed. we should have money
enough, except that its purchasing power would
fall faster than the quantity in circulation
could increase. When the Confederacy had
paper enough" nobody could afford to buy any
thing. and it took market basket to carry the
money and the vest pocket TO bring back the
purchases. When Continental money became
chasing power than the small amount first
issued When French asslgnats were plen'iiul
nobody wanted TO sell anything for them.
But where would there be increased demand
for silver" Absolutely nowhere. for all the
mints could not coin enough in year to be or
any use. while the paper wanted to relieve
business" could be printed by the cora III Il
week Nobody would want the silver bullion
at any price when paper had fallen III pur-
chasing power TO the value Of the silver dollar
because a slight further fall might at any time
deluge the worlds market with the 9S,OOO,OOO
of silver coins and silver bullion held by the
Treasury AS nothing could stop the fall In
purchasing power of paper, with rapid ISSUES
in progress and with prospect of unlimited
issues. it would drag down the silver with IT.
Men have imagined that there would at least
be a stopping point for the depression Of cur
rency at the present bullion value Of silver,
which is maintained only by the fact that the
vast quantity held by Government is prac'l-
cally so locked up that it cannot be thrown
upon the markets. But with paper issues with
ont limit by State banks and by Governments
the lock would be broken. the avalanche OF Sill
yer would threaten. and nobody would want 10
pay any more for silver bullion than the price
in gold which the paper currency would bring
Ii Is easy to sec that the London market. which
the shipment of a million ounces will break at
any time would cease TO be market with the
possibility that 1900 tons of silver might at
any time be dumped into it. Fear dcpresses
more than actual sales and all would fear at
every considerable transaction that the Amcri-
can avalanche had secretly begun 10 move. IT
;c ,bo Iifnral nth that fhcrp cOul1 he money
| in the country except the boarded gold and
that universal bankruptcy would be the only
relief.