The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1885-03-04


tothe President-EIsct's Letter on SILVER.
WAsHIyeToN, March 1.-The friends Of
silver in the House, inclined at first to make
a formal reply to the letter Of President
elect Cleveland, since it has been given to
the public decided, at conference held this
evening, to reply openly to the letter, with
which they do not agree. They say they did
not invite a controversy, bat, on the con-
trary, were anxious to avoid it. They also
say il was not until ii had become known
that g determined effort was being made
to induce the President elect to CON-
NIT himself and his administration
IN advance t. the gold side of the
currency question, that they decided merely
TO ask him not to commit himself till his
Cabinet was formed and both sides of the
question could be considered. They pro.
posed at first to send delegation to present
their views TO him, but after communicating
with him, at his suggestion, they sent
paper signed by nearly 100 members of the
present Congress and members-elect to the
next Congress. No reply was necessary, they
assert, and none was expected. They fur
ther say that, while regretting the
in advance of his Inauguration and
of the formation of his Cabinet,
they Go not propose 70 have controversy,
unless II is forced upon them. They believe,
however. in the independence Of the legsla-
tive branch Of the Government, and assert
that they viii at all times maintain it.
They furnish the following as q statement
Of their views:
In the letter no distinction is made between
silver coinage and silver bullion While it Is true
silver bullion. which is excluded from coinage,
and consequently from monetary use. is worth
less lin the ratio OF 16 10 ~ than IS per cent OF
the gold dollar" silver COINS which are admitted
10 monetary use, are equal in value 70 the gold
coin. The silver dollar viii exchange for as much
the gold dollar. It viii even buy the gold with
which the gold dollar may be made.
France, with a population of &c, ,01O 900, and
territory not ss large as Texas has IN circulation
S6ooCCO,CQO IN silver, with $3.50 CO0C00 in gold.
TO over s6O0 COO in gold, although 81 500 000 000
In silver coins. al ratio Of 15h to J, are
sAtO9Coh0gO IN gold In paper and silver to-
gether including silver certificates we have $780,.
oo0 Geo which shows that in this
country there is more gold than paper,
end nearly three times much gold
as silver. With this proportion in our
currency. and with gold snd silver equally full
tender for everything, it is difficult to under
stand why the Secretary of the Treasury might
nor. ne chose to do so, pay out more silver and
less gOld2 OF course, If while receiving into the
Treasury United states notes. silver and silver
certificates. gold OF gold certificates, he pays out
OF the other hand, he should pay out more silver
and PAPER and less gold. the character of the re-
serve in the Treasury would control the Secretary
Of The Treasury. There would be no need OF legal
tender If the one who receives the money be per-
mited 10 choose the kind he viii have. That silver
and silver certificates displace gold is true, but
only as the Treasury OF bank notes disDlaCe IL.
The withdrawal Of slcO. 200 600 of bank notes or
Issuance OF SiOO OOOOOO has the same effect gold
as so much IL silver or silver certificates. Why
has it 10 have been proposed to Withdraw the
National Bank notes as means oi preventing the
O
10 the proposition that there now exists, or ever
has existed, under our Constitution, Oolig tons
speeifca ly payable In gold. the silver men feel it
thei! solemn duty to enter their most
ss4 of 1bs l{sn5sstio ~ tho 1,Sostt sb
ObiesuOns exist or ever did exist. Webster said
gold ana silver. al the rates fixed by Congress,
constitute the legal standard value In this cOCn
try, and neither CongTess nor any State has the
authority to establish any other standard or TO
displace this. One act 70 strengthen the public
credlt, approved March Is, 1859 sOlemnly pledged
the United States to the payment of the bonds in
coin. The reiund1ng act of July IA. 1S70 provided
for he payment of all refunding bonds in coin OF
their present. standard value. which is the same
the pTeseut va ue. The resumption act of Jan
usTy L. lS75 provided that from and after the lst
Of January. 1879, the Secretary of the
Treasury should redeem in coin the out
standing legal tender notes. By act
Of February 2s, 1875 prJviding for the RESUMPTION
Of the coinage Of the standard dollar, silver dol
lars were made legal-tender of ali debrs aud dues,
pubic and private, unless otherwise expressly
stipulated in the contract and there is not D.
lic obligation outstanding, and never was con-
tanning stipulation OF payment in gold. In jan
nary, 1875. Congress adopted the following con-
current resolution, offe. ed by Stanley Matthews,
then SensfoT. and now on the supreme Bench,
That al bonds OF the Unitrd States, issued or
tnorized to be issued under the said acts OF Con-
gTess herein before reeited. are payable, preipal
ard Interest, st the option of the Govern
ment Of the United States, in silver dol.
lars of the eOinage of the United States,
eontairins 4l2I grains each Of standard silver
sn1 that % restore 70 its coinage such silver coins
IS le2sl tender on payment of said bonds prin-
eIpsl and interest, is not in violation OF public
faith, nor IN cerogation OF the rights of public
creditors. The opinions of the Secretaries OF the
Treasury from 1873 down are referred 10 &c au-
thoTity. The opinions of tn Secretaries valu-
able wDen supported by facts and sound reasons.
bot ought not 10 control unless they are. IL can
Lot be forgotten. however, that the same S5cfe
plsee.
The friends Of silver concur in the opinion that
ifiS most desirable to maintain and continue the
mass OF our gold coin as we'll the mass OF silver
already coined. They agreed, TOO. that IL
is OF m0mentous importance 10 prevent (the coin
of the two metals from parting company, but the
two metals have already parted company under
tee influence of silver characterization in other
countries and the hostility OF the Treasury and
banks TO silver in this. But that the continued
coinage OF silver at the rate Of s2s 600 900 year
viii drive GOLD out Of ctrcul ulaiion in the f.
fure, OF force il TO q premium, does not by them
SCI 70 10 be sustained by the facts or sound reason
Ing. The total volume Of currency in the United
II is believed 10 be priEci2le Of eco
nomje science perfectly well settled,
that L the volume OF $3.50 O 00Oo is not sufficient
81 Itself 70 maintain prices in this country at the
level OF internationF. prices then geld will come
here an6 stay here in s1fieient amount to make,
with the volume already liz ciculati0R. what will
constitute our diStributive share OF the worlds
money, IS determined by ouf interna ti0na1 trade
Thst s750ooo,0o0 is not a sufficient volume to
maintain pricfs at the worlds level OF prices is
evidenced BY the fact that 500 600, 600 Ia gold a
considerable part Of wafcb AZ least Is in eircula-
zion. either in the form of coin
ceTiiEcsies- II now STAYS here. and 10 will go
sFFay only when prices become lower elsewhere
man they are here. II is believed, therefore that
sUcn crisis as has been foretold can overtaks
under existing conditions 4. Is not believed TO
be IL the power of all the bauks IL the country,
even II they were 50 disposed. 10 take gold out OF
circulation and hold Il for any Ieugth of time al
premium. They must first lock up the worlds
money. and arrest the worlds commerce. Nor
can the paper or silver or silver certificates, now
IN circulation. side By sice with gold exue gold.
The gold can oe expelled only by forcing into
circulation. in addition to s75O0O0 co., either OF
silver or paper. equal to the entire volume OF the
gold nov in circulation. Ia that manner, uuG'er
6reshsn1's law. gold might be expelled ana PROB
ably would be.
Second Part of the Silver Mems Reply.
WASHINGTON. March LIT is doubtless true,
- q