The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-02-27
Twryrr YEARS OF GOLD pArMEvrs.

attacks upon American Tobacco and Manhat-
fan Elevated. Selling for delivery what one
does not possess is always hazardous. and IL is
especially so at this time, when the money
market is as well supplied as II Is. and the pre-
pondcrance OF public sentiment is so decidedly
In favor Of a rise, or, Mt least. against "a fall.
The only thing to be done by those who doubt
tho pcrmanence of the present state OF things
is to sit still and wait. keeping their money in
hand for q favorable moment to inves. IL. To
10 beyond this. and to attempt to precipitate a
fall. even with the backing of political infu-
ence, Is to invite sure disaster.
Attention was called In this column, last
Monday, to the enormous volume of credits.
which in this, as in all other civilized coun-
tries. serve the purpose OF money equally with
coin. In fact. the extent to which credit money
supplements coin and the uniformity with
which 1t is accepted as OF the same value as
coin mark the degree of confidence. inspired
by experience. which men have in the willing
ness and the ability OF their fellow men to
fulfil their promises SO long as this conf
denco remains unim paired the fabric built
upon It will be solid and mistaken, but when
II fails the superstructure raised upon 1t will
come tumbling to the ground. AS the advan-
tagc Of the credit system lies in its augmenta-
ton OF the medium OF exchange. so its disad-
vantage is its fragility and its constituencies to
the slightest breath Of suspicion.
For this reason. 1t Is important that the value
OF the coin. according to which the value OF
credit money is estimated. should be as free as
possible from uncertainty. II the standard Of
measurement varies. all computations made
according TO 1t must necessarily vary with 1t.
Without insisting. as many do. that gold is alb
solutcly fixed in value. it may. nevertheless. be
asserted. with reasonable confidence. that 1t 10
the most nearly so OF any commodity in gem
eral use, and that, therefore. 1t is best adapted
to he a monetary measure. On behalf OF silver
II was for n long time asserted that with re-
spect TO agricultural products. it varied less
shan gold. but even this proposition has been
contradicted by recent facts. and. az regards
the vastly more important commodity of human
labor. it has never been true. Wages. 80 far
from falling. when measured by gold. as agri-
cultural products did for a few years. have
steadily risen and are now higher than ever.
1t was fortunate. therefore. that when this
country resumed specie payments on Jan. l.
1879. after a suspension lasting nearly seven
teen years. it resumed in gold. Had the bill
proposed in 1873. for the unlimited free
coinage OF silver at the Did ratio OF 10 to |, been
passed in its original form, instead Of being
amended as it was. into a bill for limited coin
age only, we should now have. as India had
until 1893. and as Mexico has still, silver as
che standard of value. with ali the inconven-
fences and fluctuations attending it. On the
other hand, none of the evils predicted by the
opponents of the gold standard as sure to re-
suit from adherence to it have happened. We
have not been obliged to suspend specie pay
ments because of any difficulty in obtaining
gold. the business OF the country has not been
hampered and restricted and the increase of
our material prosperity has been marvellous.
The act providing for the resumption OF
specie payments on Jan. l. 1879. was passed
In lSID two wars after thp opt n1lou-ipu thp
free coinage OF silver at the ratio of 18 to l had
been repealed. 1t was. therefore. substantially.
an act for resuming in gold. and was so under
stood by the whole nation. and it also provided
that the entire issue Of Government notes
should be redeemed and cancelled. Three
years afterward. so much OF it as related to the
cancellation OF redeemed Government notes
was repealed by an act requiring such notes to
be reissued and the act heretofore mentioned.
providing for a limited coinage of silver dollars.
was passed. 1t therefore became. by Jan. /.
1919. an act Tor nothing but the resumption OF
specie payments. and for specie ayments in
silver coin as well as in gold coin, but. still. the
coinage OF silver dollars being restricted. they
were at par with gold. and have remained SO
ever sincr. Even with these notifications.
which greatly facilitated resumption. few peo-
Die believed that the act could be carried into
effect on the day fixed for it. and a prominent
'"''AOA 't'NN' 'ieN iS
would willingly pay 100000 for the privi-
lege o! being first in the line at the Treasury
on that day. in order to empty the Treasury OF
Its gold and profit by the premium which. in
his opinion. it was sure to
These gloomy predictions were most signally
taIsified. In 1877 the Treasury obtained. by
the sale OF bonds abroad. S4O.OoO.OOO in gold
Tor RESUMPTION purposes. and in 1878 SoO.OOO.-
UoO more, to which was added S5.5OO.OOO. paid
on the Halifax award in the fisheries dispute
with Great Britain. making a total Of S9o.5OO.-
OOO From surplus revenue enough more gold
was gained to bring the amount in the Treasu-
VappIIcableto the redemption OF Government
notes up to nearly S~li2,Ooc,OoO and. as the
event proved, 1t was amply sufficient. Nobody.
IN fact, presented notes for redemption, and
the premium on gold. which, during the latter
part OF 1878. was trihing, disappeared entirely.
nor would there ever since at any time. nave
peen any doubt OF the Governments ability to