The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1884-03-04

A PariIxan View Of His Proposed None
tary Measure.
Extended Criticism aud Comparison.

/ EAtVuucu sfbtcirm Hau tohtp~s s'v'
Representative Mills. OF Texar, IL no
very wide OF the msrs when no says tha
the duties on wool are Of tile or no use q
American wool.growrre, but when hecnpie
/, deal with the treasury reserve he II a III
| tie Wild. On Monday last he introduced !
| bill directlng the secretary OF IKE irrLsur,
TO redeem 500 600 700 az The bond, ~it,
money taken from the reserve fund. Sine
then he hes fald to a WsshirRtnn CORE
ponden: 1--WE have $4,000 0o0 IN The re-
serve fund wh.ca Is kept mere on thr pee
thst II may be needed Tor rehnnspifon pur
| poses. or In Gaze Of . run upon the trct iiry
| or sotnethipg OF shat eort. II hos been X ul
80 for years, and without any speclHi d.
maud upon II so that We may now crptider
| / think, that " Is not now needed IA 20 larrs
Al amount. Fifty nli lion Il Tors would
DO inst az we'll, think and we could Gel
rid OF the Interest on 100000 co.,"
Mr.. Mills may, or may not, he ayafe
that wha, he PROPOSES is 20 take tlu0,OOO,-
| coo from the Z reserve End use u ~ re-
deem bonds Practically IL 10 gold aud
nothing else, that IS held for The rcdemp-
| lion Of note circulation. The silver IL Ci no
| account Tor that purpose. IL H. were un-
derstood that silver was held Againat noes.
or IL silver ~sB forced upon holders OF
called bonds, the descent 10 the silver
standard would be- instantaneous, and gold
and gold certificates would disappear bonn
precisely "a gold did when greepbackt fsii
below par IN 1862. Duties on import,
would DO paid only In greenbacSs, (Which,
| as the Times has repeatedly pointer
out. Ia contrary 80 law. ard III silver dol.
lars and silver rsrtiiicstes. Gold would flee
The country, or go into hiding places rs II
did during the days OF deprecated paper
money, and the present voums OF crcua.
ton would be contracted more than ~ per
cent.
Bearing In mind that Il Ia the gold re.
| serve that Mr.. Nj lis proposes to "A tack, let
MS see what the Effect OF his bill would b. "
n were enacted into law At tho emu o.
| last mouth the amount az gold coin and
| bullion in the treasury was S22l 8l3 $50 o
this total 81, 46z GO belonged IN holders o
gold certificates, leaving Si1i,35D 7S6 bs
longing 10 the government. Mr.. AZ lis pro
poses to pay out 500 coo 600 OF tnis inl
nonds leaving a reserve OF less than SAB
600 900 belonging to the government. Inn
|, Ill the reserve the Texas ito nci@r pro
poses to held against more rhan $3i6 900 10,
Of United States notes, TO cay nvth o.. o
other coin obligations. That is, he propos
ses 10 reduce the reserve TO ABOUT ~ pei
cert OF tho gresnbsck OBLIGATIONS.
But The treasury gold has lot only Il
support the greenbscks al par, but Is ha'
20 perform other very important functions
IL must Ire present Tor payment OF inieres
on national bonds II denanded, euo !
would certainly would be- demanded IL th'
reserve were reduced so low. Nor 10 tina
all. In reslity the treasury reserve hss
support no, only the greenoscSs bnt ihl
national bank notes bat the silver dole
and silver certificates; aud not OF ly tlss
hut tho fractional silver coins, wniuh b.,
law nre rpdsenla bls. The load which Qr
Mills expects iess than s45 900 900 Of gold {,
carry IL, therefore, In round tilures, $780,
600 ,00O In greenbscks. $3.50. 600. COO ~ "a
tionsl bank notes, 2,00D 900 IN si'yel
dollars aud certiicatrs. and (sayi no
600 go in fractional liver coin, mstVsi
a total OF t808 O00, 900. In effect Mr.. Mil
propsses TO support this huge msss upor
q per ecnt. reserve.
Possibly 1t nj sbt DO safe to reduce III,
gold rcserve u sone extent II IL were no
Tar the silver coinage. Bat 90 long hs W
20 on coming 85-cent dollars as NO AZ,
now doing rhers can DO 10 safety except
In large gold reserve An matters nos
stand there 10 no telling when silver dol
will settle down TO their bullion value
WITH moro than two-thir,is OF tho god &c.
serve swapt away, the dsdccnt to the silver
level would be preclp tatad, ana ihor'
would be no means Of srrestiog T. y, lpoa
ss W. go on sodn; up~ard OF S27,C0O0t
a year TO tbs load that lhr gold rsseIy'
has to carry Wa cannot re-
drce that reserve with any ssfetp
And besides this increae. In the load anoth
or increase ia the form Oi 70 u certihchtrs 1
ncw gazing on. Since The beginning OF th'
yesr tho amount oi gold Certificates on
Standing has increased $40 0J0 600, whit
Inc 90 d Ia the treasury has Increased only
4. IA ...l
proportion of obligations TO reserve Is TAX
log place. il 10 most inopportune to propos'
a two-,h birds reduction Of the latter.
The Mia projtct will, no doubt. com
nend itself to Dull operators In stooSs
grsis, provisions, ETC., as its immediat
practical effect would be considerable in
flstion Of tue currency. This effect wonl'
be counteracted only in part by the accom-
paying contraction Of bank circulation
retsry OF the treasury would cal
500, 700 Of 3's, 40 matter O
course, unless otherwise directed by con
gross, Tho result would be q contraction
OF the bank circulation to the extent OF per
maps $50 0O0. go, unless In the meantime
law should be- enacted making IL prohtab!
for banks 10 substitute other bonds for thu
called SIS. The prospect now IL that n
hanks will get nothing better than the Nc
Pherson bi !, authorizing the issue OF no'e
equal in amount to the par value OF tn
bonds deposited. No doubt this will hrv
some effect t. prevent contraction. aud II !
possible that the hanks woul replace from
sixty TO eighty 10 iona of ihe oDnuH cal e
under the Nils bil with others In tina
case the immediate imitation would b'
sixty milli,ns or more. TINS, with IN,
constant silver ipfatiou, would be- sud-
cient 80 create something Of boom II
speculation.
That would be bad enough. but IL woul'
not BE- sl'. Foreign exchange has Leel
novsripg about the gold-rxportipg poin
for some days. The hiRh prices OF grail
and provisions have checked merchandise
exports, while there there has b 'en no cor
responding restriction Of merchandise i'm
ports. A sudden ilfistion, "a h 10 woui,
result from ths passage Of the Mills oil
would still further check exports ant
stimulate i'm ports Of merchandise, and tn
PROBABILITY is that the gold liberated from
the treasnry would soou bsRsn 20 60 ont q
the cou,try. II is hot ~ all al kelly Ina
this movement would soon assume eucr
Drop oriions ss 90 excite approximation. nnt
cause run upon the treasury. The out
a,w Of gold. taken In connection with th
! great depletion OF the reserve Ia obedierc
| 10 the order OF cosgresss mieht create
. gold panic. snd send the country dovr h
| the eilv-r basis vt, rush. About tha
, time tho ,ilver shrlskers would max
como important discoveries, such - thA
United states bonds payable ~ e6-cen
dol n were worth considerably less thu
bonds psv able 10 100 can't dollars, ard tbs
itfs NOT The easlsst thing Ia the world I
add Is -nts In the dollar 70 the value 81