The Dillon tribune., 1882-03-11
silver Certificates A. Currency.
VIEWS OF \ NATIONAL BANk uFvICER.
To fhc Editor ffhs' ". 4 z'y15mnt::

10 Wc EdHO' 81 fhc ". I Zr76unf:
Sir: In the zyiDsnc Of the 10Th ult. l
read as follows:
Ifthe coinage Of silver and the ISSUE Of
these promises (silver certiicates) should
continue, how long would it he before the |
gold reserve Of the Treasury would evapo- |
rate, silver promises coming in for duties |
while gold goes out for interest? This ques- |
tion IL a pertinent one tor the consideration, |
not Of ore committee only, but OF several. |
BY ignoring il Congress can only render |
other most important legislation entirely |
valueless.
The Hon. A. S. Hewitt, In letter pub I
lished a few days since, admits that the |
coinage OF silver will continue; and he has |
introduced bill to keep the legal tender
dollar on par with gold by redeeming il
with gold at the Treasury. Your appre-
hensionst'are we'll grounded. Silver and
silver certificates are fast becoming an i'm.
portant element in our currency. More
than hundred millions ri them are in the
pockets OF the people. one-third IN coin
| and two.thirds in certificates: all the Ger.
l tif'cates are issued against coin held on
deposits IN the Treasury. The idea that
silver will not be iemonctized IL probably
correct. Putting my text. which is YOURS
and adopting Mr.. Hewitis opinion, I am
led into some comments OIL our future
currency troubles and the best measures,
financial and legal, to be adopted.
! 1t is indisputable that our various cur.
| rencirs are on par with each other, and that
all are current in all parts Of the country.
The people are satisfied. II is evidently
true that a majority Of people and Of Con
gress are in favor Of using silver, not as a
currency, but as deposited security for
{.;lv.,r r.s,rtsfSr,fnSN 'I>J,., ,v,osf
important item in the National Bank sys-
tenn is the security deposited with the
United States Treasurer for the redemption
of bank mote currency. A currency Sc.
cured by silver bullion will certainly stand
as well in the confidence OF the people as
bank currency secured bv : or ~ per
cent. bonds. The original National Bank
Act required 4 per cent bond as security,
and when ! remember that Unite! States
Is were worth only S. to 90, and New
York is 7s to So ard Ohio Is 80 to 6,. and
when read that history repeats itself, I
cannot help experimenting that the Nation.
al Bank currency may not bc permanently
secured. The people do not want silver
for currency; nor do they want gold
Every morning applications are made at
our Slh-Treasurv for silver ccl titicatc> in
exchange tor gold without obtaining them
Orders from every part of the country for
currency have this sentence; "Scnd legal>
bank notes, or silver certificates don't send
gold"
think that two things are sufficiently
proved: First, the people will not have sill
vcr denonr'ized Second. they will have
IL paper circulating medium. ! often hea,
this remark made by the opponents Of the
silver dollar: Give Il silver dollar that i,
| tni: if,l,, ri, '
Now, let Is trs 70 co,ny romies on the fol
: lowing basis: Stop coming dollars, but
issue silver certificates against assaveC
: bullion. so that there will be 10 per cent
more silver represented in the ccrtiti.at.
than is contained in the standard dollar.
One word about "Silver promises comm.
! in for duties while gold goes out for inter
est" From the experience OF the past two
wears it is quite evident that silver promise,
will not come in faster Than thcv will 1t
taken out in exchange for gold. Hence III.
gold reserves will not he impaired. Another
word rs regards panic, contraction and RI
! ,u'sion, that may lead to another snSprn
sion. 1t is quite evident that by ba>iny ou
credits and currency on both precious me
; tails this danger is essentially diminished
When gold in large amounts is being cN
: ported it will also be i1oa,ded by the timor
Gus OF our own people, and there will no
be gold enough to go around, and 1t vii
hr II happy condition to know that ever,
r ounce Of silver car be utilized into deb
paving curenrcv. The legal tender cur
: rtncv will be presented for redemption, i
. ever, in panic. some banks will fai! in
, panic and this in itself works cortrac
i. ton. | for one do not forget the troubl.
caused by the grccnback contraction whcr
t Mr. McCulloch was Secretary Of tn.
r Treasury; nor do forget the efforts mad,
even bv bank otlicrrs for their reissue. NJ,
, plea is for paper currency secured by
:. precious metal. silver being preferable, tc
the reason that England and Germany vii
5 not demand it through o,.r importers ant
bill drawers.