New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-12
THE NEW MONETARY BILL.

Wall Street is just how devoting itself with
deep interest, not TO say anxiety, to the study
OF the most perpexing puzzle it has seen for
many years. After all the predictions of mag
nificent prosperity or dangerous imitation to re-
suit from the new monetary measure, as the
time draws near for its final passage most people
seem TO know much less about 1t than they did
some weeks or months ago. Perhaps 1t is natu-
raj that the widest fears Of its opponents and
the brightest hopes OF its friends should now
appear to themselves overstrained Also, those
who expected a gold standard bill to work won
ders are just the people to question whether the
refunding bill may not prove a revolutionary
measure. 1t is toleraby convincing evidence
that Wall Street is not of one mind about the
puzzle, and has not solved ii TO the satisfaction
of all that stocks Were stagnant, dull and de-
clining last week.
Without question the measure will do good in
one respect. 1t will put an end so far as any
simple declaration or formal enactment can, to
the pretence that the monetary standard in this
country is not gold, but some possible admixt-
ure or choice between two metals That fact
every practical man has known for years and
has acted on but the number of persons who
are not practical, and yet do business Of one
kind or another, make investments or set up
as financial teachers of the world is quite large
been plainly and emphatically declared in the
bill which will doubtless pass the House this
week. and the action Of public servants will
hereafter be governed thereby. 1t has been in
sisted with great earnestness that such formal
decision would do great good. If it strengthens
the credit of the country in any time of emer-
gency it viii do good.
The refunding provision is a change In the
basis and character Of the banking circulation
which is intended to bring about a large In
crease Of such circulation by making IL more
profitable. But the glowing estimates of some
bond brokers that banks can clear IS TO 90 per
cent profit every year on their circulation are
not calculated TO recommend the measure 10
large proportion of the voters. and 1t will soon
be found that such predictions are not strictly
In harmony with facts. The root of wide
differences Of opinion about the effect of this
measure is that some people set out with the
assumption that a bank can keep outstanding
all the time all the circulation IL pleases and is
permitted TO issue, while other people start with
the assumption that every dollar of bank circu-
lation issued here or in most of the great com
merciai centres, excepting at times of special
demand for paper currency, will be Immediately
thrown back upon the issuing banks through the
process Of redemption. The truth is, of course.
between the extremes. and the highly contra
dctory opinions OF able and experienced men
about il are OF much the same value the
coirespondingly contradictory opinions Of the
saI.se Bl.n abort lie future prices of almost any
security.
The extensive preparations Tat have been
made 10 take out the new bonds as basis for
circulation indicate that a considerable increase
in authorized circulation must be expected How
much OF IT will be Issued and kept in circulation
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