Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1889-12-11
government; or in silver dollars at the option of
the holder. Repeal the compulsory feature of

government; or in silver dollars at the option of
the holder Repeal the compulsory feature of
the present coinage act.
The secretary desires to cali special attention
to this proposition, believing that in the appli-
cation of its principles will be found the safest.
surest ana most satisfactory solution of the silver
problem as 1t is low presented for the action OF
this country.
In explaining the proposed measure at this
time, it Is intended TO deal only with its general
feature s. but. If desired, bin EN- bracing the de-
tails believed to be necessary to its satisfactory
operation will be prepared and submitted tor the
considerati, n of Congress.
The proposition is briefly this: To open the
minis Of the United States to the free deposit OF
silver, the IT arket value of the same mot to ex-
coed ST. for 4125 grains OF standard silver at the
time OF deposit to be pa in treasury notes;
said notes to be redeemabe in the quantity of
silver which could be purchased by the number
of dollars expressed on the face of the notes at
The time Presented for payment, or in gold, at
the option Of the government and to be receiva-
bic Tor customs, taxes, and ali public dues; and
when so received they may be 1essued and such
notes. when held by any national banking aseo-
ciatiOn, shall be counted part OF Its lawful re-
serve.
The secretary of the treasury should have dis
cretionary power to suspend, temporarily, the re-
celpt of silver bullion Tor payment in notes,
when necessary 10 protect the government against
combinations formed for the purpose of giving an
arbitrary and fictitious price to silver.
Ii the price OF silver should advance between
the date of the issue of a note and its payment,
the holder of the note would receive a less guam
tit> of silver than he deposited. but the exact
quantity which could be bought in the market
with the number of gold dollars called for by his
note, at the date of payment. If the price should
decline, he would receive more silver than he
deposited. but the quantity which could be pur-
chased with the number of gold dollars called
for by his note at the time presented for pay.
ment.
The advantages of retaining the option to re-
deem in gold are threetod
First 1t would sive additional credit to the
notes.
Second. 1t would prevent the withdrawal
and redeposit of silver for speculative purposes.
Third. 1t would afford a convenient method
of making change when the weight OF silver
bars does not correspond with the amount of the
notes.
So tar as the issue of notes is concerned, the
plan is very simple. Ii a deposition brings hun
dred ounces OF silver to the mint. and the mar
ket price of silver at that date. determined by
the secretary of the treasury, is 95 cents an
ounce, he would receive in payment treasury
notes calling for S95.
Various methods of redeeming the proposed
notes have been considered, but the plan recon-
mended seems preferable.
They might be redeemed wholly in silver bull
ion of the same weight as that deposited; that is
to say, If an owner OF silver had deposited a
hundred ounces, he might receive back a hun
dred ounces.