Year: 1878

Inquiry and speculation as to the working of
the Silver Bill continue active. The device
of the new dollar has been fixed the dies and
bullion are being prepared. and it is officially
reported that the Mints can soon deliver the
new coins at the rate of $3,j00,000 per
month. Nevertheless, the complete uncertain
ty which we anticipated as the effect of the
bill actually appears; nobody knows what to
do, sales of bonds are not large, stock trans
actions are remarkably small. the stagnation
of general business continues, and the price OF
gold has declined, in part because OF sales OF
disappointed spectators.


We have held that the result depends almost
wholly upon the disposition of foreign credit
ors, and it Is not surprising that no sign OF
that disposition appears as yet. The bill, If in
terpreted and executed as best it can be for
the protection of the public faith, sets in mo-
ton two opposite forces, as we have already
explained. On the one hand there Is Il ten
dency to dlstrust American faith .and to sell
Government securities, and this, when the
rush of exports has passed, may cause exports
of gold and an advance in the price. On the
other hand, there is a tendency to contract
the lcgal-tendcr circulation, and to supply
another medium for payment of duties in
place of gold, and this, when the silver coins
begin to flow from the Treasury and into the
Custom Houses, may cause decline in the
price of gold and an advance OF legal-ten-
ders toward par. To what extent either of
these influences may prevail, depends upon
the intensity of distrust among foreign cred
tors, and upon the method OF enforcing the
act adopted by the Treasury.


1t is suggested, we observe, that the silver
coins may be paid out in purchase of bullion,
"thus causing initiation OF the currency" But
this is absurd, because the Treasury can buy bull
lion with bonds, and, in view of the Resump-
ton Act, cannot afford to purchase at less ad-
yantageous terms and at the same time to
throw away the chance of placing bonds III
| preparation for resumption. 1t is also worth
notice that, whether issued in one way or an
other, the silver coins will return mainly, II
| not wholly, to the Treasury. so long as the
amount paid out each week or month does not
exceed the duties payable. 1t Is also suggested
that the Treasury may be compelled to pay
out greenbacks in the purchase Of gold, so
that no sharp contraction is to be apprehended
| But the Treasury can hardly afford to go into
the market to put up the price of gold against
| itself and to the uctrlmenJ OF tHe puDliC
credit, and if it buys gold at all, can do so
better with bonds, or even with silver than
with the legal tenders in which the premium Oh
gold is fixed.


Yet the possibility of so many and such
widely diverse interpretations of the act by the
| Treasury causes already, and for months will
cause. the utmost uncertainty in respect to
! business operations. The stagnation OF Satur-
| day was not surprising. If there is to he nc
resumption and virtual initiation, as some hope
there will be ample time to buy when the pol
icy Of the Treasury appears. If there Is to be
virtual CONTRACTION, and further effort TO pre-
pare by all lawful means for resumption, there
will be little disposition to buy or to invest
until the fact is known, and prices have adj
iusted themselves to it. Either way, the state
of expectancy must be one Of dulness. Per
hans it would be helpful to the country if the
President and Cabinet should formally decide
and announce what policy is 10 be pursued
ot least as far. as the information would moi
be preiudiciM to the Government.