Year: 1878

IL Will De IN the power OF Inc OecrtthIy oA
the Treasury to obstruct, and for quite
period to defeat, the purpose expected to be
accomplished by the Silver law. We speak
of it as law because, whether vetoed or
not, it is morally certain to become one.
Whether the President signs it, returns it
with his objections or quietly suffers the
ten days to elapse, will make no
real difference. If he thinks it in
expedient to interpose futile veto
we trust he will at least make the
tacit protest implied in the withholding OF
his signature. If he should be of the opin-
ion that the exposure and denunciation OF
the bill in vigorous veto would intensity
its bad effects by alarming the public cred
itors and causing the return Of large quanti-
ties of bonds from Europe to be sold in our
market, that might explain his hesitation.
but it would not justify him in signing the
bill. He should have no completely in 80
bad measure, although he may be power
less to prevent its adoption.


A more important and interesting ques-
ton at this advanced stage of the business
relates to the manner in which MIR. Sher-
man will execute the law. A hostile Secre-
tary might render it practically imperative
for two or three years to come without in
any respect violating its letter. We do not
advise such q course nor do we think it
likely that it will be pursued. Besides
the indecorum of attempting to nullify by
methods Of administration law which
the President was unable to defeat
by his veto such q course would have
dangerous tendency to infame the
passions of the silver men and increase the
popular support which confers on them SO
much power for mischief. They do not in
tend to stop with the passage Of this bill,
and it would evince want of tact to give
them new handle for stirring up their
lunatic followers.


The methods are obvious enough by
which the Secretary of the Treasury could
render the Silver law imperative. The law
clothes him with large discretion as to the
rate at which silver shall be coined. He
'is authorized and directed to purchase,
from time to time, silver bullion at the mar
ket price thereof, not less than two million
dollars worth per month nor more than four
million dollars worth per month, and cause
the same to be coined monthly as fast as SO
purchased into such dollars" If he limits
the monthly coinage to the smaller sum
there will be no just ground of COM
plant, although this part Of the law was
evidently framed with reference to the
capacity of the mints and with the pur-
pose that sum should be adopted inter-
mediate between the two extremes. The
machinery Of the mints is certainly suf-
ficient for turning out two millions per
month, and probably insufficient for coin-
ing four millions per month, and it seems
O fair construction Of the law that it in
tended that the practical limit Of the new
silver coinage should be the working ca
pacity of the mints, with o reasonable
allowance for circumstances and impedi-
ments Still, for reasons which we will
presently explain, we think it would be
wiser during the first six months to sail
pretty close to the lower limit.


In order to understand how the Secretary
of the Treasury could practically nullify
the law during the residue of this Presi-
Dental term we must bear in mind that the
Secretary may legally limit the coinage of
silver dollars to two millions month.
This alone would not nullify the law, but
the disposal which the Secretary might
make of so small an amount Of silver coin
would enable him to do it. The bill gives
no directions to the Secretary of the Treasury


Al o.. ,:ol~ 4 H. .1,~11 I,
put. He is not required to pay out dollar
of it unless he chooses. Assuming that the
annual revenue Of the government will be
sufficient for its annual expenditures, all
the silver coinage Of the next three years ut
the ra of two millions a month could be
retained in the Treasury as a coin reserve
by the simple process of replacing the
present gold reserve with the new silver
dollars.


By exercising his present power to sell
gold for greenbacks and using the green
backs for current expenses the gold reserve
could be diminished at the rate of two
millions month and replaced by the same
amount Of silver until the gold in the
Treasury should at length be exhausted.
This process would last until near the close
of Mr. Hayes administration, and neither
the country nor even the importers would
meanwhile see any of the new silver dollars.
During the progress Of this experiment the
customs would be paid in gold as here
tofore, for the reason that silver coin could
not be had for that use. BY thus forcing
the collection of the customs in gold
the Treasury would be able to pay
the interest on the public debt in
gold, and all the fiscal operations of the
government would go on precisely the same
as at present, except that it's present gold
reserve would be gradually transformed into
silver reserve at the rate Of twenty-four
million dollars year, the silver dollars