The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-04-05
TALKING OF SILVER AND COLD.
Yesterdays Debate in the Senate
Upon the Bond Bill.
Senator Sherman Holds the Demo-
cratic House Responsible
For the Financial Distress of Which
a Democrat Complained.

bGfUOCFdt
WA sHINGToN, April Am the Senate to-
day, the consideration of the bond purchase
bill was resumed, the question being on Sen.
ator Beck's amendment The amendment
was offered yesterday as an additional sec.
tion, providing that the circulation, or any
portion thereof, of any bank not in lisuida-
tiou shall be surrendered, and shall not be
taken up by other national banks, and thai
the Secretary of the Treasury shall purchase
at market price, an equivalent amount Of
silver bullion in excess of the minimum
monthly silver coinage, which shall be coined
and used as provided for in the silver coin.
age bill of Feb. 2Sth, 1873.
Senator Teller criticised the statement Of
Senator Mcpherson yesterday and the day
before as to the country being, within sixty
days, lif the amendment should become q
law, on silver basis. with gold at premi-
um. He read figures to show the use Of sill
yer coin and silver certificates in payment OF
import duties. and declared that there was
nothing in the financial experience of the
country, or of the world, to justify the state.
ment that if $780, 900 in silver coin were
put upon the market any difference would be
made in the relative value of the silver dol.
lar and silver bulli on. He denied that there
was any intrinsic value in money, whether
gold, silver or paper. 1t has simply value
things. While silver would not buy as much
gold as it would in 1852 still, with rare ex-
ceptions, having nothing whatever to dc
with the character of the money, it would
buy as much as ever it would in the last one
hundred years. The great trouble with the
people who prophesied financial distress was
not that they were not honest, but that they
were ignorant men, who had not studied the
A b G of finance and Immediately assumed
when they came into office, executive or
otherwise, to lecture those who had given
lifelong study TO the question, so that the
country was suffering from the Ignorance of
the self-constituted guardians of its finances.
The silver question did not cut any partic-
ular figure in the pending BILL. The amount
of silver that would be coined under the
Beck amendment would have no influence
on the value of silver, but would show the
world that the silve--producing country OF
the world was satisfied that it did no wrong
when it partially remonetized silver; that
step by step it proposed to go on until there
was a complete recognition of silver as a
money metal in all respects with gold.
The question being on Senator Beck S
amendment, Senator Allison desired to offer
an amendment to ii, to extend the time from
80 days to 60 days, but was informed by the
presiding officer that Senator Beck's amend
ment was one in the second degree, being an
an amendment to the substitute for the
question. Senator Beck's amendment was
then agreed to-yeas, 81; nays, 13.
Senator Reagan then offered an amend
ment directing the purchase and cancellation
of bonds with the 500, 100000 in gold now in
the treasury for the redemption of legal ten
der notes.
Senator Farwell asked whether he meant
by his amendment to suspend specie pay
ments, for that was the way he (FarwelD un-
derSt0od it.
Senator Reagan replied that the question
had no application at all to his amendment.
He proceeded with his argument to show
that the easiest, most direct and least injuri-
Gus way to reduce the surplus was to adopt
his amendment.
Senator Beck said theibill with his amend
ment was simple proposition to allow the
use of the surplus in buying bonds, and at
the same time take care that the present vol
ume of the currency was not contracted. de
appealed to the Senator from Texas to with
draw his amendment, stating that he would
have an opportunity to offer it to the bill
'for the investment of certain sum in the
treasury
Senator Reagan, relying on that assurance.
withdrew his amendment.
Senator Sherman moved to amend Senator
Beck's amendment by substituting silver
bullion for silver coin, over So, 600 900 month
ly. The presiding officer ruled the motion
out or order, as the Senate had agreed to the
Beck amendment.
Senator Sherman said he knew the amend
ment was not in order, but wanted to show
ter which had not been carfully examined by
the committee. The great distress spoken of
by the Texas Senator was due to the failure
of the Democratic administration to purchase
bonds and of the Democratic House TO pass
the Mcpherson bill, allowing the national
bank currency to be issued to the full amount
of the bonds deposited to secure such circu-
lation. The banks had been forced to reduce
their circulation because they could not af-
ford to deposit bonds as the law required.
Since the Democratic administration came in
the national bank bar r currency had been re,
in the treasury $1O2, 100000 in United States
notes, which was the only way they could
reduce their circulation. That amount was
now tied up as the result of the faulty action
of the House. Democratic policy had brought
on the present financial distress
But this distress could be easily removed
by continuing the efficient national banking
system and removing the restrictions on ma
tional.currency. Bondholders and rich men
were not desirous of contracting the curren-
cy, as Senator Reagan asserted. Ii there had
been any contraction, the Democratic party
was responsible. Notwithstanding the con-
traction in circulation, there was 81, 800 000 900
more than the national debt. The balance Of
trade had been with us ten or twelve years,
and gold has been flowing into the Treasury
since the redemption of specie payments as
result of that sound policy. The Demo,
Gratis would like to overthrow the national
banks, but the national bank currency was
best the country ever had The various
propositions offered amendatory to the bill
were an attempt TO overthrow the national
nQmOnrQfiQ N arfy
came into power an effort had been going on
to undermine the national banks, coming
not from the President, but from the South
ern States representatives mainly. The
price of silver had steadily gone down.
Under the coinage act, it cost II per cent to
coin silver, besides the cost of transporta-
ton, while the national bank currency cost
the government nothing. Yet the Senate
was asked to substitute one system for an
other. 1t was now unwise. Twelve or fif-
teen years hence the national banks would
disappear, because there would be no gov
ernment hands ON which to base their circu-
lation. The banks would then become
banks of deposit and the government would
have to provide some other form OF paper
money.
thought. If his policy had been adopted.
silver would never have deprecated in mar.
ket value as it had. The maintenance of
silver at par with gold was wise, but If
it could not be brought to that
standard, an approach to it could be
made. Then, by a convention with
European nations, new ratio might posi-
bly, be established. and gold and silver placed
side by side as in the past, But while gold
and silver were differently rated in the mar
ket, no single power in the world could
bring them together. If the United States
attempted it, it would reach finally single
silver basis, in which financial transactions
would have the same foundation as in China,
japan, Mexico and South America, thus de-
taching this country from the great CONNER
cial nations of the world. He desired 10 see
the two metals put side by side with each
other. Instead Of coming silver dollars, sill
yer bullion should have been made the basis
of the circulation. He had no objection to
the issue of silver certificates on bullion in
the treasury, at its market value. The
United States should have done as France
did. AS every Latin nation did, and not coined
more silver than necessary for ordinary
transactions. On the balance Of silver bull
lion. silver certificates should have been Is
sued. There was not any objection at all, In
the minds of the financial men Of the coun-
try. TO the issue of silver certificates at the
market value of silver. These certificates
were circulated freely, without any change
in ratio for he should not desire 10 see the
ratio changed except by conceHsus OF the
leading nations of the world.
The proposition of the Senator from Texas
was to dissipate the gold now neld tor lhs
redemption of legal tender notes, ana wouIo
drive it abroad and into the banks Ks 70 y; pe