Savannah morning news. [volume] (Savannah) 1868-1887, 1886-08-21
DEPRECATED CURRENCY.
WHY BOND CALLS CANNOT Be
ISSUED ON n FIXED BASIS.

The Governments Obliged TO Have on
Hand at All Times Sufficient Money of
Every Kind tO Meet the Demands %
the Public--Secretary FRirchiId's Criti
oism of the Morrison Resolution,
WASHINGTON, Aug. 20.-Acting Secre,
tary Kairchild made the following state.
ment to-day In regard to the fifteen mill
lion dollar bond call: "The receipts are
unusually large just at this time. Silver
is being absorbed by the people pretty
well, and the conditions generally ara
quite favorable for such a call at this
time. The call does not affect the money
market enough to make light market
motive, as the bonds are mostly held by
national banks, but what little effect il
has is a help, and the public may as well
get the benefit Of it," To a suggestion
that it looked like following out the Nor.
rison resolution, the Secretary said, with
smile, that it was more than that. Ha
denied that the calls were made for POI
litical effect.
MANNING's REASONS.
The reason Secretary Manning had NOS
made such calls was that the conditions
were not favorable. The thing had been
oVerdone when he assumed control of the
department, and Secretary Mccullough
was In doubt about the result. When he
went out Secretary Manning had to wait
until the condition of the Treasury would
warrant further reduction Of the debt.
10 have gone on calling bonds with ths
Treasury in the condition 1t was might
nave reduced the money to a single
silver standard. Ii was not SAFE
to call more bonds at the time
If the two metals, gold and silver,
were 20 be kept on an equality. In SUBJ
stance, he said, the situation is Just this
"ihe government thas gold, silver and pa,
per money, fractional currency and silyeI
certificates. In paying out it must allow
the payee the option to select which be
prefers. Whichever he wants-gOld, sIk
yer or paper-he can have. One is as
good as the other and he will take that
which is most convenient for use.
DIFFERENT STATE OF AFFAIRS.
"But il scarcity of one of these moneys
precludes this selection, If the gOvernI
ment hands out silver, for instance, and
says, Here, you must take this; it IS the
only money l have,' the condition ID
changed. For instance, cay the govern
ment pays man in this way 100000 ID
silver. He has no use for more thar
100000. lie cannot use more than that IN
his business or distribute it among the
people. He has the other $50, 600 on hl1
hands. He must do one of two things
with it-buy property or put it on the
market. II he buys property, the man be
| buys of does not want silver any more
than he does. He must, therefore, pay
more for his property In that money. But
| 1t is most likely that he will put the
money on the market. The public has
absorbed all 1t can. so there is no demand
| for silver. 1t must 90 at discount, say
Of per cent.
DEPRECATED CURRENCY.
"But it don't stop there. This discount
runs through all the silver in circulation
and all there is in the Treasury. w o tneE
have deprecated currency. SO you seq
we cannot run the risk OF this. The
Treasury must be a reservoir in which ID
held all the money that cannot be ab.
sorbed by business and by the people,
The natural condition Ofequality betweeH
| moneys must be preserved. The coinage
OF 100000 silver dollars per month was
| an unnatural condition made by statutory
action. To balance this the Treasure
surplus bad to be increased so as to pro-
vide for that which could not be used,
than the people want, 1t takeI
time to distribute, and it must b,
| held in the Treasury and let out
0 meet the demands. 1t must be let out
| just as fast as the people will absorb it,
no faster. The department: had TO wait
before making large bond calls until the
condition OF the Treasury was such as u
allow a choice OF money. Now the re.
ceipts of the government are large and
the people are taking silver pretty WELL
The calls are by way OF experiment
| We will call as much as wa
| can. Thus far the calls have
amounted since July 1 to s37 ,000,0 900. The
PROBABILITY is that the calls during the
year will very far exceed the amount
necessary for the sinking fund. They
will be made as often as the condition Of
| tho Treasury will warrant. There is no
| fixed limit. No one can tell three months
ahead what can be done ih the way Of
bond calls. The trouble with the MOrri.
son resolution was, rs was said in Con.
gress, that it made 1t obligatory to call
| just so much. This cannot be done. II
| is impossible to tell what the situation
| may be at any time.o