Year: 1877

CONGRESS- AND THE CURRENCY

 Although the Congress which now be- gins 1t first session was convened for 8 specific purpose which can be accomplish ed in few days, nevertheless it is pr0ba- ble that the session will be continued and run into the regular sessioE and that oth4 I CT aRbjeceE than providing for the pay of the army will be considered and acted up- on. The most important of the subjects to come before the present Congress are the revision of the tariff and those which relate to the currency, It can safely be assumed that the tariff will not bechang- ed without due deliberation. There is danger, however, of precipitate action re- specting the currency, particularly as the stlcklers for cheap money are flushed with the victories won in Ohio and Iowa.

 The only part of the currency which Congressman are called upon to consider is that which is full legal tender, all other kinds. including bank notes. bank credits and every form of debt which passes from hand to hand in. the settlement of accounts, being redeemar @ble in the full legal tender, which. is another name for lapfnI money. This full legal tender now consists of gold. which is the standard money of the com mercial world, and of United States notes, which the government has pro nlsed to redeem in gold on the first day. of Janu- ary, 1878, but which are not now the equivalent of gold, and therefor do not express gold values, simply because the government is not in position to redeem them, nor such part of them as may be presented for gold While these are the only two kinds of full legal tender there is clamor for another, namely, the silver dollar of 4l22 grains, which was demone. tized in 1873, because for many years it had been a useless coin, its coined or ex- change value having been below it's bull- ion value This clamor for the old sil. yer dollar comes for the most part from the numerous class which before the de- preciation of silver despised all metallic money and would have nothing except the ''battle-bo and blood-stalned' 'geeen- back. It is only just to say, however, that some of the present advocates of the remonetization of silver condemned the green-back craze and ard sincere now in seeking the re-esta ablishment of what is called the double standard. But by far the majority of those eadvocatingt he silver dol lar belonged to the original or cheap money party. and now care for silver only because they hope with it to cheat credi- tors.

 Of the two full legal tenders which we now have, and of the third which is pro. posed, Congress is not asked by anyone to do anything in respect to the first, gold. Whatever the legislation may be, therefore, it will be in regard to the other two klnds-the one that we have, United States notes, and the one that is pro. posed, the silver dollar. Respecting the | kha vrSn k,nr, on the repeal of the Resumption act. There are diverse opinions as to what can now be. accomplished under the law. While all agree that it is not perfect, it cannot be denied that opportunities for getting gold enough to secure it's object such opportunities as do not come in even every generation-have been per. mltted to pass away unimproved. There are those who believe that the neglect to take advantage of these opportunities makes it very doubtful whether the neces. sary amount of gold can now be obtained. But the majority of the intelligent class which is earnestly in favor of gold cur rency, think it yet practicable, and, rath- CT than imperil the main object. will be content to let the law stand as it IS. The Secretary of the Treasury has declared that with the law as it is he can execute 1t so as to secure resumption at the ap- pointed time. Of course the shortsighted rabble who believe that there is such a thing as cheap money will demand it's re- peal. Clearly it is the duty of Congress, by every consideration of honor and sound policy to stand by the law, and to give the largest opportunity for it's successful exe- cution. We believe that making full al. lOwance for the demagoglc element in I L zI~1 and that all Senators and Members of Congress who sincerely favor sound currency will forego their personal opinions as to methods und unite for this purpose A repeal of the law would properly be regarded at this time as direct thrust at the public cred | it.

 | The silver question as it comes before Congress is practically this; Shall the old 4123 grain dollar be made full legal tender. If Congress should decide this n the affirmative and the President should not interpose his veto, the result would be-so long as the silver dollar is relatively below the value of the gold dollar-a practical exclusion of gold from our currency. If this should occur, and the Resumption act should not be repeal | ed, we should then have silver and | sllver-paper. currency, which would be more at variance with the money of the world than our irredeemable paper cur reucy is at present. This, of course, would be welcome to those who seem to glory in an inferior currency for domestic use. But, say the better class of the sill yer advocates (who it is only just to re- mark are more eager in their mainten. ance of the double standard theory than they are to secure cheap money), when the United States remonetize silver the price of that metal will advance, and the | silver dollar will be the equivalent of the gold dollar. If all the other conditions which affect the price of silver remain as at present the tendency of remonetization l here would undoubtedly be to put up the price of silver. There is too, in the pres I ent condition of affairs in India, a good | reason for supposing that in the the next twelve monthsi silver may rule higher than 1t has. But that reconciliation here would in the long run steady the 1 price of silver in the worlds market is questionable; and if it did not we should simply have fastened upon ourselves a metallic currency having the worst fea- lures of irredeemable paper. and be de- prlved of the power to bring that curren- cy to par with the money |, of the world.

 As we have often repeated. silver has for reasons wholly beyond the control of any single nation on our globe, lost that quality of steadiness of value which once made 1t 8 proper measure of other values Until it regalns that quality of steadiness it is not fit to be made measure of val ues which to be good money it should be as we'll as an instrument of exchange. A complete demonstration that silver will advance in price is not proof of steadiness of price. No one can say with anything like certaintvj that the price will become steady at any figure. That is something which can only be ascertained by waiting. If silver would even remain about fifty five pence an ounce, or at any other price which would not make the coins too bul ky, then the exact ratio of value between an ounce of silver and an ounce of gold