The republic. [volume] (Washington [D.C.]) 1849-1853, 1853-01-21

office th1s established for public dues especially
40 they have all the essential Requisites ct coin, and
- this VIA believed to BE the object Of gongresa
The general appropriation act Of the last ssssof
contained provision by which the further receipt
OF these issues was prohibited, and - obedience
thereto the instructions under which they been
received we're revoked.
The Department has reason 70 beifeve. from pc.
1itions addressed to it by public meeting of the
merchants of San Francisco, and from information
received through other reliable sources, that much
Inconvenience and embarrassment has resulted
from this legislation. 1t remains with Congress,
however; to say what relief shall be extended, and
the subject ia submitted to their considers ion.
The Inconvenience arising from the scarcity Of
silver coinage still continues, and to such ex-
tent calls loudly for some legislative action to
remedy the evil. Whether the present premium
which silver BEARS in comparison with gold arises
from the continued heavy influx of the latter and
its consequent deprecated value, or from special
and unusual demand in Europe for silver, Or from
both causes combined, is not very material to dis
cuss at present; for if it arises from either or both
OF these causes, there is no reason for believing
that there is any present prospect of either being
removed 30 as TO create any reduction in the value
of silver. aaf
If, as believe is the fact. this difference in the
relative value Of the two metals arises from the
immense and increased supply of gold which has
been furnished from California and Australia,
there can be but little doubt such difference will
continue to increase, there is present indica
tion that there will be uced supply from those
sources, but, on the Contrary, every prospect OF
still further increase.
This state of things has banished almost entirely
from circulation all silver coin Of full weight, and
what little remains in the hands of the community
consist principally of the worn pieces of Spanish
coinage Of the fractional parts of a dollar, all Of
which are of light weight, and many of them ten
to twenty per cent. below their nominal value.
! see no remedy for this great existing evil but
the adoption of the principle embraced in the bill
which passed the Senate during the last session,
making new issue of silver coinage, Of such re.
duced weight as will allow it to circulate with the
gold coinage of established weight and fneness
The principal objection which has Leen urged
against the proposed new silver coinage is that
it could not, without q violation of contracts, be
made legal tender for the payment of debts, and
that gold would therefore hereafter be the only
legal tender 1t is true that heretofore the laws Of
the United States have recognised the coin OF
either metal legal tender, and if it was at the
option of the creditor to eect which he would re.
ceive, there would be a very serious objection to
changing either the weight or standard Eneness
of any portion of the COIN But this is not the fact
as it rests with the debtor to say with which de-
natural and inevitable consequences of the pre-
MUM which silver now bears have been to cstab-
sh, practically, gold the only legal tender. Nor
can any legal or equitable objection be advanced
to continuing gold as legal tender, as it is not
proposed to reduce either the weight or the fineness
OF that description of coin; that every creditor
will continue to receive precisely the same guam
tity of gold for any given sum, as atqthe time he
may have made his contract. Nor does the pre-
sent, or any future increased depreciation in the
value of gold, form any just reason against its
being continued as legal tender, at it's present
weight and fineness; for such depreciation in its
actual value, if not in its relative as regards
silver, has been progressing gradually for some
and all that can be said is that the de-
probation is rapid at this time than formerly
and it is but natural result of the uncertainty
and want of stability in human affairs.
In the present state of things, as connected with
this subject, not only the public service, but also
the wants and convenience of the entire commu-
nifty, require that some measure should be adopted
to furnish a silver currency, and the subject is,
therefors. respectfully but earnestly recommended
to the prompt attention of Congress. 7saf
would again call the attention of Congress to
the subject of making mint certificates receivable
in all dues to the Government, and dispensing
with the present bullion fund, which is maintained
at an annual expense of from $350,000 to $780,.
600, which might be sayed in interest by the ap-
plication Of that fund to the redemption of the
public debt, besides the great advantages to the
business community and the general trade of the
country, BY throwing the amount of that fund into
circulation, instead Of keeping it constantly as
dead capital in the vaults of the Mint.
The amount of the bullion fund during the ast
year has been nearly $7,0O0,000, and it has been
applied to the Immediate redemption of mint Ger.
tifcates, 80 soon as the deposits of gold dust were
saved and their value ascertalned, which has
orally been in from twenty four to forty eight
hours after such deposits were made, and the
bullion fund was then made good soon as such
assayed gold could be worked into coin, to be
a gain employed in the redemption of other certi.
Gates. ....-..-.s, IS
The plan which the Department would recon-
mend would be, to issue certificates under the au-
thority of Congress, to be duly registered and
signed at the Treasury, to the needful amount,
say elk seven millions of dollars, in sums of
nd or
payable to the order of the Treasurer of the Mint,
to be distributed in due proportions to the Mint
and its respective branche; and soon as any
deposit of gold bullion was assayed and its value
to pay the amount TO the depositor in
the above certificates, except the fractional part of
one hundred dollars, which would always be paid
in coin. These certificates being receivable in
payment OF dues to he United States would at all
times command their full par value, and would
promptly and cheerfolly be received on deposit as
cash by the banks and held by them as specie cap
ital, until their customers required them for the
payment of duties or lands They would accu
mulate principally at the great marts of commerce
in the Union, and could be transmitted by mail by
the different receiving officers to such points the
treasury might direct, avoiding all the risk and
expense which now attends the transfer of public
funds in specie from points where it is collected
and not required for public expenditures
As these certificates were paid in, at the large
seaports. the gold go soon as coined
could be sent to such points from the Mint or the
branch which may have issued the certificates and
the Inter would then be returned to the M mt or it's
branch for the purpose of being again issued to
new depositors. The pen5e of transmitting gold
coin to the points where it might be required in
order to redeem the certificates which had been re-
;eived by the public officers, would of course be
paid by the United States, and would require but a
small sum, probably not the twentieth part of the
amount which would be annually saved in interest
BY applying the present bullion fund to the re.
1emption OF the public debt
No objection could be urged to this plan on the
ground thatit would be paper currency, for it is
merely a certificate for an amount of gold already
actually in possession of the Government. These
certificates would not be intended for crcuIa
ion, nor would they circulate from hand to
land, but would remain with banks, bank
srs, or individuals until required for pay
nent to the Government; and the receiving
officer should not be permitted to reissue but
only to hold them until they are replaced with the
gold in legal coin, from the bullion for which they
we're originally issued.
These certificates should likewise always be re-
1eemabie at the Mint after reasonable time being
allowed for the coinage of the gold bullion which
night be fixed at not exceeding twenty DAYS after
he bullion had been assayed. Or
1t is not proposed that the certificates thus issued
BY the Mint and its different branches should be
and generally received at all
points of the Union, in such case the fluctua-
ions and the great differences in the rates of ex.
change between different places would cause
hem to be used as remittances, and throws heavy
expense upon the Treasury Tor the transporta. |
ION between distant points of large amounts in |
DeCle. sufficient enua Ioo.t -,