The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-03-08
A Proposition to Suspend the Issue of Small
Bank-NOtes and Supply Their Place
with Silver Certificates.
Something About the Men Who Are
Going to the Assistance Of Greedy.
An Indiana Soldiers Narrative of Injustice
Suffered During the War-Miscellane-
Gus Washington News.
THE SILVER PROBLEM.

Mr.. Laceys Plan for AVerting a Threatened
Financial Danger.
Special to the indianapolis Journal.
WASHINGTON, March THE recent drain of
gold from the sub-treasury at New York has
created some alarm in financial circles, and it
is predicted that unless immediate steps are
taken by Congress to suspend coinage of the
standard silver dollar the result will be gold at
a premium. There seems to be little basis for
hope that Congress will stop the coinage of stand
ard dollars.
Representative Lacey, of Michigan, Repub
lican member of the coinage committee has a
new plan to avoid the threatened calamity
When asked, to day, ''What are the prospects for
passage of the bill limiting coinage, he replied:
"A partial canvass of the House shows that the
Democrats are unwilling to suspend coinage of
the standard silver dollars They have control of
the committees and large working majority III
the House. The Bland bill itself is a Demo
cratic measure, and the Democrats are respon-
sible for the present condition of affairs. The
Republican minority, while they are willing, by
their votes and their voices, to oppose this ele
ment of danger are unable to bring any meas
of relief before the House, as such a meas
ure must come from committee controlled by
the Democratic party Republicans recognize
the Importance of silver as q product, and are
disposed to use it as far as is consistent with
safety; but it has become apparent that, in the
near future, if not in the immediate
present, silver coin will be available for
only two purposes; one is use as a subsidiary
coin, the other as a basis for circulating notes.
lnasmuch as it is apparent that continued coin
age of standard silver dollars cannot be sus-
pended, 1 am inclined to favor suspension of
further issue of one and two-dollar notes, either
by the treasury or the banks, and favor the issue
of one and two-dollar silver certificates, so as to
max the silver dollar or it's representative per-
form a quasi subsidiary purpose There have
been coined thus far about 100, 900, 900
of standard silver dollars, and there
IN circulation at present about 500, ,000, 000,
in one and two dollar notes and standard silver
dollars. 81, 600, 900 of which are in one and two
dollar notes. and there are still in the Treasury
about $50 900, 600 unrepresented by silver certif
Gates. My idea is that if standard silver dollars,
either in coin in small silver certificates,
could be used to supply the demand for notes of
small denominations, it would go far toward
preventing their use in settling clearing house
balances or in payment of claims for large
amounts, and it would tend to limit their
legal-tender quality. This would leave about all
large transactions to be settled by gold, green
backs national bank notes. In this way
think the entire amount of standard silver dol
lars would soon be represented by silver certif-
Gates of small denominations which would not
be returned for redemption, and would go into
the hands of the people for current small trans
actions. The government being obliged to hold
silver coin for the redemption of these notes, all
danger of using silver in part payment of the
public debt, or in settlement of balances would,
for time at least be averted."
do you think there is no hope for the Kelley
bill suspendlng the coinage of silver dollars for
two yearss'
"None whatever; but believe that to be the
only practical way to solve the problem and bring
the countries of the Latin Union to recognize sill
yer as coin metal par with gold"