Year: 1878




causc the victorious army, at the very moment
when complete success was within its grasp,
suffered itself to be swept away by unreason-
ing panic. We appeal most earnestly to the
defenders of the public faith and the workers
for sound currency not to suffer themselves
to be deprived in this way OF victory winch
steadiness and frmness will WIN. Washing
ton dispatches say that there is some DISPOSE
ton not to make the strongest opposition that
is possible to the Silver Bill, or to the anti
Resumption Act. And yet the inila-
tionists and repudiators are evidently
alarmed and divided in purpose. The
session of the Silver Union on Mon
day was remarkable chiefly for the
strong and successful opposition of Cen
cral Butler and Mr.. Ewing to the bill as 1t
came from the Senate. 1t is especially note
worthy that their objections to tho bill as
amended cover the very points which we have
urged. General Butler sees that the bill does
not renuire the issue of silver coined, and that
the Secretary of the Treasury can hold it all if
he sees fit. General Ewing sees that, if the
Secretary refuses to use silver in place OF
gold for payment of interest on bonds, he
mnst pay it out, if at all, III place
OF lcGal-ttnucIs, WHICH, VIII thth
mulate in the Treasury, and that this
operation will be most rapid contraction OF
the paper circulation, and a step toward spc-
Gle payments Between the two, they have Il
reasonably correct idea of the bill as passed
by the Senate. 1t is not measure which i'll
wolves initiation, unless the Administration
pleases so to use it. On the contrary, since the
silver dollars paid out instead of legal-tcnders,
would at once come back into the Treasury by
payment of duties, while the legal
would remain idle in the Treasury, ii is essen
italy bill for the rapid retirement of the
greenback circulation.


But for one thing, the President would prob
ably sign this bill, and would be justified in
signing it. That thing is the effect upon the
public credit. But France is also technically
empowered to redeem government obligations
in silver It's credit is good merely because the
government chooses not to cheat its creditors
and itself by putting into circulation more
silver than the country can employ as a sub
sidary coinage without its depreciation. Pre-
csely the same course can be pursued under
the Senate bill, if passed. The Secretary can
refuse to pay out silver at all until after the
day fixed for resumption. He can pay out silver
then only in exchange for legal-tender notes.
Thus it will come to pass that the silver dol
lar will be in this country essentially token
coinage, as the fve-franc silver piece is If
France, and will pass, not because of any in
trInsc value, but because it serves as token
for gold. AS long as the amount issued is
carefully limited, and legal-tenders are with
drawn for all silver put into circulation. this
may continue. But this is exactly what the
regulators do not want They have their
chOice--to defeat the Senate bill, with the
probability that they can get no other, or to
pass it, and provide a token coinage of silver
instead of legal tender notes.


This, of course provided the Resumption Act
Is not repealed Some Senators are quoted as
saving that resumption will be impossible if
the Senate Silver Bill passes. II is probable
that they are mistaken. As long as silver can
be used here only as token-coinage, 1t will
not hinder, but, as General Ewing says, will
help resumption. TO pay it out for interest
would be dishonest, and the Secretary OF the
Treasury may be trusted not to do that. To
pay it out instead of legal-tenders would he
dishonest only ii the amount so issued should
be large enough to cause depreciation, and
the Secretary of the Treasury would be with
out excuse false to his trust if he should issue
such an amount As for the silver certificates
authorized by the Senate bill, they do not
change the situation. They can be issued only
in place of coin-not bullion-previously paid
out and then deposited and held IN the Treas
ury, and would be mere convenience, doing
no harm.


Hence. it becomes exceedingly important to