St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-12-05
HERE is A REMEDY.
Secretary Window Offers a Soiu-
ton of the Financial Problem.

Secretary Window Offers q SOfu-
ton of the Financial Problem.
= The secretary then presents his soln-
tiop as follows: Issue treasury notes
against deposits of silver bullion at the
market price of silver when deposited,
payable on demand In such quantities
of silver bullion as will equal in value.
at the date of presentation, the number
of dollars expressed on the face of the
notes at the market price of silver, or in
gold at the option of the government:
or in silver dollars at tue option of the
holder. Repeal the compulsory feature
of the present coinage act. The prop
OsitiOn is briefly this: To open the
minis of the United States to the free
deposit of silver, the market value of
the Same-not to exceed 81 for 1925
grains Of standard silyer-at the time of
deposit, to be paid in treasury notes;
said notes to be redeemable in the
quantity of silver which could be pur-
chased by the number Of dollars eX-
pressed on the face of the notes at the
time presented for payment, or IN gold
at the option of the government, and to
be receivable for customs. taxes and all
public dues; and when so received they
may be reissued; and such notes, when
held by any national banking aSSOcia-
ton. shall be counted as part OF its law
full reserve. The secretary of the treas
ury shall have discretionary power to
suspend. temporarily, the receipts OF
silver bullion for payment in notes,
when necessary to protect the govern
ment against combinations formed for
the purpose of giving an arbitrary and
fictitious price to silver. If the price of
silver should advance between the date
of the issue of note and its payment,
the holder of the note would receive
less quantity 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 purchased with the
number of gold dollars called for by his
note at the time presented for payment.
The advantages of retaining the option
to redeem in gold are threefold:
First-It would give additional credit 10
the notes.
Second 1t would prevent the withdrawal
and redeposit of silver for speculative pur-
poses.
Third-It would afford q convenient
method of making change when The weight
of silver bars does not correspond with the
amount of the notes.
So far as the issue of notes is con-
cerned. the plan is very simple. If a
depOsitOr brings 100 ounces of silver to
the mint. and the market price of silver
at that date. as determined by the sec
rotary of the treasury, is 95 cents an
ounce, he would receive in payment
treasury notes calling for sos. An
II al ic
to redeem them in lawful money of the
United States, dollar for dollar. This
is practically purchase of the bullion
at its market price, the government be-
coming the owner of it on the issue of
the notes. This method has some feat
ures (which commend it, but Oh the
whole it does not seem logical or de-
Sirable that the notes should be re-
deemed in a currency which is certainly
no better, if as good. as themselves.
Moreover, it does not seem eXpedlent TO
pile up in the vaults OF the government
a large quantity of silver bullion which
cannot be made available for the re-
demption of the very notes which are
based upon it. True. the government
might coin the bullion into standard
silver dollars and use the resulting coin
for the redemption of the notes. which
would be quite satisfactory when the
silver dollar becomes equal in value to
the gold dollar. but at present it would
not appear to be either just or desirable
to issue note on deposit of 100 cents
worth of silver. and redeem it with
dollar containing only ~ cents worth of
silver. Among the obvious advantages
of the measure proposed, the following
may be briefly stated:
First-It would establish aud maintain
through the operations OF trade convenient
and economical use of all the money metal
in the country.
Second-It would gre us a paper currency
not subject to undue or arbitrary imitation or
contraction, not to auctuating values, but
based, dollar for dollar, on bullion at Its mar
ket price, and having behind it the pledge of
the government to maintain its value at par,
it would be as good as gold, and would re-
main in circulation. as there could be no mo-
tive for demanding redemption for the pur-
pose of ordinary business transactions.
Thirdly the utilization of silver i'll this
way a market would be provided for the sur
plus product. This would tend to the rapid
enhancement of its value, until point be
reached where we can with slfety open our
minis 10 the free coinage of silver.
Fourth-The volume of absolutely sound
and perfectly convenient currency thus in
troduced into the channels of trade would
also relieve gold of part of the work which
it would otherwise be required to perform.
Fifth-It would meet the wants of those
who desire q larger volume of circulation. by
the introduction of currency which, being
at all times the equivalent of gold, would
freely circulate with 1t.
Sixth--It should not encounter the opposi-
ton of those who depreeate imitation, for,
though the volume of currency may be some
what increased, the notes would be limited
to the surplus product of silver. and each
dollar thus issued would be absolutely sound.
and would represent an amount OF bullion
worth dollar in gold.
Seyenth-It would be far more advanta-
geous to silver producers than increased coin
age under existing law, for in botn cases
bullion would be paid for at its market value,
and under the plan proposed a much larger
amount could be used with safety; and
while increased coinage would arouse the
fears and encounter the opposition OF very
large and powerful class of people. 1t is be-
lieyed that this measure would meet with
their acquiescence.
Eighth-There would be no possibility of
loss to the holders of these notes, because of
in addition to their full face value in bullion
they would have behind them the pledged
faith of the government to redeem them III
gold, or its equivalent in silver bullion.
Ninth-The adoption of this policy, and
the fepeal Of the compulsory coinage act.
would quiet pubic com prehension i'll regard
TO the over issue of standard silver dollars.
and the present stock could therefore be
safels maintained at par.
Tenth This plan could be tried with
perfect safety, aud it is believed. with advan-
tage.to ali our interests. Should it prove
successful and satisfactory plan for utilizing
silver as money. other nations might find 1t
10 their interest to adopt it. without waiting
for an International agreement, and should
concerted action be desirable, 1t could then
be more readily secured. By This method it
is believed the way would be paved for the
opening of the minis of the world to the free
coinage of silver and the restoration of the
formerAequilibrium of the money metals.