Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1879-05-23
NUMBER Al.
The Coin and Currency MISUNDERSTANDING
Nherman's Views.

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Sherman's Views.
While the work Of preparing the coinage
bin, which is now before Congress, was in
progress the committee on coinage, weights,
and measures inyiteia conference with Seero-
tary Sherman and Mr.. Burchard, director of
the mint, at which some interesting facts were
elected. Mr.. Sherman was first questioned
in regard to the trade dollars, and in re
spOnse said that the whole amount coined
was $3j,9j9 200. OF these about :s29,-
600, 900 have been exported, leaving between
! SC,0o0,OOO and s. ,OOO, 600 in the country.
I Being interrOgatod concerning the policy Cf
redeeming the trade dollar with the stand
ard silver dollars and then recoining them,
Mr.. Sherman said there were several serious
objections to such step. First, said lie,
sit would he discrimination against our
own miners in the price Of silver bullion
and in favor Of the holders of these dollars in
China" ." lie went on to explain
! the origin of the trade dollars.
showing that they were coined as bul-
lion for private parties, for private profit,
the Government charging the actual cost to
the owners Of the silver. II the trade dol
lars should now be made txchangenblc Tor
standard silver dollars, and equal to gold
dollars, they would be worth II or Is cents
more than they are for bullion, and foreign
holders would be able to profit 10 that extent
by shipping them to the United States The
Government can buy the same amount of
bullion from our own miners for S4,0G0, 900
or Sj,OG0,C00 less than it would
held abroad There have been coined
of standard silver dollars $50, ,542 $50, and
there are now in the treasury go $50 ,G9j,
leaving s. ,Gjj,25j in circulation. The
number of the latter would be less if there
were not scarcity of 81 and 3 notes. The
national banks are not now permitted to
issue these small denominations, and it does
not appear to be generally understood that
the treasury is prepared to supply all comers
with 81 and 81 legal tender notes to any
required extent in payment Of drafts or in
exchange for larger notes.
1t is impossible, Mr.. Sherman said, to dc
termine the amount o! fractional currency
now in circulation, but of the amount paid
out by the treasury there is now outstand-
ing $4l ,4S5, 1873, and the mints and the
sub-treasuries contain SUBS ,j92. There
is a considerable amount of old fractional
silver coins ahoat, but there are no means of
aseertaining how large it l. Said the Sec
rotary:
Il you force the standard silver dollars in
to circulation, | know ny experience they |
will at once come back for taxes and bonds, |
and as often as reissued will come back until |
We are driven to hoard them in our vaults, |
or they will drag our paper money down to
the market value of silver bullion and will |
expel gold. This will create wide and |
sweeping changes in contracts. For forty |
years all contracts have been based upon gold |
coin, except since the issue of legal tender |
notes. Now these are ut par with gold /
coin, and thus far we have maintained |
our silver coin at the same standard because
the amount was limited and the supply |
mainly in the treasury The addition of |
$50 900 900 of trade dollars to our active
circulation, together with the continued
coinage of - 900 900 a month of standard
dollars, would soon force into use the silver
dollar as the sole standard OF value for all |
paper money and for all contracts II this
Is to be done 1t should be directly by free
coinage, where all silver bullion would have
II nj oh a,,l i,tt tfr,ar
in favor of bullion in 4 trade dollar. every |
or. Of which now IN circulation in this conn
try is a fraud upon the law.
third objection TO remoneti@:ng the
trade dollar is that it would embarrass refund |
ing operations two years hence, when $500 |
900 600 of United States bonds will become |
redeemable at the pleasure Of the Govern
ment. 1t will be impossible to sell four per |
cent bonds at par, with the understanding |
that they are to he paid, principal and inter
est, in deprecated silver. "G0ld. said the |
Secretary, "waS the standard coin in cJntcm
plltion when all the bonds were issued. To |
take advantage Of the unforeseen fall Of |
silver bullion to issue silver /
coin worth only 50 Ter cent Of gold coin
would excite dstru>t and fear" Passing To
the question Of free coinage, the Seeret'ryre-
marked lit would ne 4 great object oi ma
tional desire if We could restore silver and
gold to free coinage; but it Is one of the |
most difficult and delicate financial opera
tons that You can propose. My /
idea ia that YOU cannot 30 it that it is not |
possible to dc it. and that this law would not |
do it, unless You make the ratio of the two
metals as Fixed by the law correspond as
nearly as may be to the market value ol the
two coins
In regard 10 the issue of coin certificates,
the Secretary stated that they could not be
made to circulate by the side Of legal tender
notes. The amount of such certificates is,u-
cd under the act of 1873 Is SlO,437 600. Of
which all but SIG, have been returned
to tie treasury in payment for bond and
taxes.
lie expressed the opinion ;!iat ,hoald the
Warner bill he enacted into law disastrous
effects might be expected. He rccommcnd,d
on the other hand that Congress suspend TIC
coinage OF silver dollars and await 1ycrturcs
from foreign governments for the establish
mcnt oi ratio between gold ard SILVER
or that Congress make ratio OF its own, >ly
about Is ounces Of silver to | of gold, III
stead @! lG 10 one. as under existing coinage
law.