Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-16
ESPECIAL rrLreaAM 70 THE p1spAroH.,

| ESPECIAL TELEGRAM TO THE DI6PATCH.I
WASHINGTON, November 15.-The mys
terious suggestion by Treasurer Huston, il
his ANIMAL report, that for the Government
to cease paying the cost of transportation
on silver sent out of the Treasury in re
sponse to private demands might be effect
i've as a means of preventing the return o.
the coin to the Treasury, has finally beer
explained by that gentleman.
LET us suppose" he says, ''that a bank
in my State, when the grain harvesting sea.
son approaches. with the necessity for pay.
ing off large numbers of field hands, makes
a draft upon us for $50, 900 in standard sill
yer dollars. There is no hesitancy in
making this call, because it will not cost
the bank anything to get the money. Well,
the men are paid off, the season of harvest
is over, and the silver finds its way back
into the bank by degrees. The managers
of the bank, knowing that they
WILL NOT NEED THE SILVER AGAIN
for long time, conclude to ship it to us
once more, because they are aware that at any
time they desire they can have it returned
without expense. Now don't you see that
If the managers understood that they would
be e.obliged to pay round sum for recover
ing possession of that silver they would not
send it back to us so promptly?"
"But would they order it in the first place
as readily if they had to pay transportation
on it?' he was asked.
"Well, experience has shown that we can
not expect to keep more than S55, 900, 900 to
$50, ,00O, 900 in circulation at any time. The
amount varies slightly, but the average is
pretty we'll maintained year by year. 1 as
sumo that it would stay about the same if
we ceased paying transportation. But the
point wanted to impress in my report was
that If the Government ceased paying trans
portation, the banks which now feel conf
dent of their ability to get their silver again
by merely asking for it would hold fast to it
while it is in their hands, instead of ship
ping it to Washington when there was a
temporary lull."
THE PLAN CRITICISED.
A well-known fnancier who was for a
number of years an officer Of the Treasury,
when this explanation was quoted to him
promptly commented: "That is a brilliant
idea of the Treasurer's, but the bankers
where he came from must do business on
peculiar principles Anywhere else they
would do their thinking before they paid
the expressage from their town to Washing
ton for the return of the dollars to the Treas
ury. When they are willing to take that
expense upon themselves, and incur the
further risk of having lot of them thrown
out as counterfeit, or light weight, or other
wise imperfect, 1t is pretty good proof that
they want to get rid Of it, should think.
Having got it out of their hands at such a
cost, does it not stand to reason that they
would think twice before ordering it back
the next season? Mr.. Huston's argument
is very interesting, but it begins at the
wrong end. 1t may be that we cannot Keep
more than $60,000,0 600 in circulation, do
what we may; but is 1sE SEQ GG99s ,6O9
BETTER THAN A SMALLER suM
such as we should surely be reduced to if
we put the Hust 6n policy in force?
"There is no 6onbt of tbe nnnonn1or;+v &c
Cne s.anuaru 10 liar as a coin for general cir
cuiatlon; my experience has given me
abundant ProSf of it. Our people were
spolIeo Oy tneir long use of paper for any
Iorm OF metal money, and especially so
D9IkY IorIn as silver. But there is the
SILVER law Which cannot be repealed as a
Wnole, ana It is certainly to the interest of
eVeFySooy 70 put as many of these dollars
Q 9ut Oh me Treasury vaults and into the
Danks ana 2, TIE hands of the people as pos
siDle' Al the Government pays for car
rage, a. 1 Understand the present contract,
Is Hills IA mile for every 81, 900. Those
are very 10 W terms-mueh lower than any
prlVate pa Fty could command from the ex-
press companies. Is it not the part of wis
oom, tneIe fore, to facilitate, as far as prac-
ucaple, tns draft of dollars from the Treas
ury, whether some of them oftervard come
back to It ior not?''