National Republican., 1884-12-02


ing representation of it by silver certif-
Gates. l believe that the world is not in
n condition, and never will be- for the de-
monetization of one-third Of its metallic
money; that both gold and silver are
absolutely necessary for circulating
medium; and that neither can be disused
without materially increasing tho burden
of debt, nor even temporarily degraded
by artificial means without injurious
effects upon home and international trade.
But also believe that gold and silver can
only BIO made to maintain their compare
tive value by tho joint action of com
mercial nations. Not only is there now
no joint action taken by these nations to
place and keep silver on an equality with
gold according to existing standards, but
1t has been by the treatment 1t has re-
ceivod from European nations greatly
lessened in commercial value.
MIR. McCulloch then discusses the fluc-
tuations of the silver dollar, its decline in
value since 1874, tho amount now hold
and tho danger to the national credit aud
tho business interests of the country by
further coinage and issue of silver certifi-
catcs, which, though prevented from
great depreciation by being receivable
for oil public dues, are really based on
coin worth only about So cents on tho
dollar, and prevent gold from coming
into the treasury. He continues:
The coinage of silver dollars under tho
act of Fob %, 1873, has now reached the
very large amount Of 1Si,73O, $40, being
an increase of $2S,000,SSO for the year
ending Nov. /, 1884. The amount of
these dollars in actual circulation is
$il,326,736. Tho increase in tho circula-
tion for tho year has only boen 81 ,260, ,3i6,
against an increase of 81, l36.32l for tho
previous year. These figures of them
selves arc an iusuperablo argument
against the continued coinage of silver
dollars.
Tho treasury would be relieved, in o
measure, from tho burden of tho silver
now held in the treasury by a withdrawal
from circulation Of the ono and two dollar
notes. This would not be gain to the
treasury, but it would be gain to tho
country by increasing the amount Of sill
yer in circulation.
Tho amount of one-dollar notes in cir
culation is $26, 76309IS0; the amount of
two-dollar notes in circulation is $26, 49,
1920. Congress would, think, act
wisely in putting an end to their circula-
tion. Nor do hesitate to express tho
opinion that the country would be bono.
flied if all five.dollar notes should be
gradually retired and the coinage of half
aud quarter eagles should bo increased.
If this should be done tho circulating
medium of tho United States below ten
dollars would be silver and gold, and we
should be following the example of
France, in which there is an immense
circulation of silver coin, which in all
domestic transactions maintains u parity
with gold.
The substitution of gold and silver for
small notes would be productive of some
inconvenience, but this would be tempo
rary only. If the five-dollar notes should
be withdrawn, the treasury would be re-
lievod from The burden of silver in its
vaults, and it would not bo long before
the coinage of silver might bo resumed.
The secretary suggests that the ex-
istence of the anomalous trade dollars
should be no longer tolerated. Originally
coined for purposes of foreign trade. and
given limited legal tender quality in
this country, they have not only been
deprived of that quality by law, but have
also ceased to perform the function for
which thov were created.
Some millions of them, variously esti-
mated ut from six to ten, are held in va
rious parts Of the country awaiting the
action of congress. Although intrinsi-
cally more valuable than the standard
dollar their bullion value is now only
about SO cents. If it be considered un-
fair or impracticable to accomplish their
surrender at their bullion value merely
small advance on that value might be
offered for them. Tho offer should not
remain open longer than one year. Tho
bullion realized from them will bo avail
able for the ordinary coinage of tho gov.
ernment, but If the present silver law is
to remain in force such bullion should
be counted as part of that now required
to he purchased each month.
In relation to.the bureau of engraving
and printing the report says:
Owing to the inadequacy of the appro-
priation for the preparation Of United
States notes. certificates, and bonds for
the fiscal year ended June 30, 1884, con-
gross was asked on Jan. ., 1881, for def
cheney appropriation. This not having
been granted, tho preparation of one-dol-
lar and two-dollar notes was suspended
from Jan. 81, 1884, to July /, 1884, at
which time the appropriation for tho cur
rent fiscal year became available. In
consequence of this, the treasury was for
time unable to supply these notes. The
appropriation for the current year, being
but $4,000 greater than that of last year,
is believed to be insut utlicient to maintain
full circulation o. small notes.
The secretary has already expressed the
opinion that the function of the one-dollar
and two-dOllar notes would be better por-
formed by the silver dollar, and suggested
that withdrawal of such notes would
furnish legitimate employment for large
portion of the vast store Of standard dol
lars now idle in the treasury vaults.
If it be determined, however, to keep
legal tender notes of the smaller denomi-
nations in circulation, recommend the
appropriation of the full amount asked for
by tho chief of the bureau Of engraving
and printing.
and circulation of the national banks tho
report proceeds as follows:
1t will be noted that tho circulation de-
creased S25, 1866, i52 during the year. The
bonds deposited to secure circulation,
which decreased S0,6l3,350 in 1883, were
still further reduced $25. 300 during
1SSi-a reduction of $35,055, $50 in two
years.
Tho per cent bonds of the United
States have now been reduced to less than
two hundred millions, aud they will be
further reduced through the operations
of the sinking fund by nearly fifty mill
ions each year.
The market prices of tho per cent.
and the Al per cent. bonds of tho United
States have declined somewhat during tho
past year; but that these bonds are still
too high to enable banks to base circua-
tion upon them at n profit is plain, from
tho fact that the circulation has been
voluntarily decreased more than S25 0OO,-
600 during the year.
Among the measures of relief recon-
mended in the last report were an in
crease of the issue of notes to tho face
value Of tho bonds deposited, bill to
authorize which passed the senate during
the last session Of congress; tho accept
ance of the 1865 per cent bonds of 1924 of
tho District of Columbia, tho payment of
which is guaranteed by the United States;
and repeal of the tax on circulation.
| earnestly commend these propositions
to the wisdom of congress, believing