Los Angeles daily herald., 1889-11-25
has favored the gold mono-metallic

measure of value. First, to restore the
bi-metallic standard of gold and silver,
and, second, to increase the volume Of
the immediate forms of currency used in
the United States. As step to the first,
have introduced my first and second
resolutions, previously read. In refer
ence to the first wish to call the atten-
ton of the association to the following
points, which, in the confusing contro-
versy on the silver question, seem to be
agreed to:
let. That silver and gold were kept
at nearly uniform relation of value by
| free coinage of both metals at the mints
of the Latin Union and the United States
prior to 1873.
I'd. That the cessation of this free
coinage caused the gold price OF silver
bullion to sink from about $130 to 9211s
cents per ounce.
Sd. That if it had not been for the
act of February IA, 1878, authorizing
since that date the coinage OF not less
than 100000 (eold) or more than
s4, ,O00, 900 {gold) worth of silver dollars
per month, the gold price Of silver bullion
would have gone much lower. In other
words, the coinage of the minimum
amount of silver dollars has measurably
suspended the gold price of silver bullion.
4th. That if the act of 1878 were re-
pealed, and the coinage Of silver dollars
were to cease, the gold price of silver
bullion would sink from 92 cents to about
81 cents per ounce. This was admitted
by gold mono.metallic witnesses before
the Royal Commission in England. If
it be admitted that the coinage Of 2,000,-
600 (gold) dollars worth of silver bullion
into standard silver dollars per month,
has sustained the gold price of
silver twenty-five cents per ounce,
would not doubling the coinage as
is called for by this resolution raise
the price of silver?
This resolution, therefore, aims to &C.
complish two things; first, to show
that the full and fair use of the silver
dollar coinage act of 1878 would show
that it only needs slight additional use
of silver to raise its bullion price. The
Secretary of the Treasury has never tried
the experiment, which, if tried for a
short time, would set at rest many of the
accepted fallacies in regard to silver.
Second, the resolution, if carried into
effect by Congress, would give at once a
much needed addition to our currency.
1t certainly can do no harm to have the
experiment of coming 100000 (gold)
worth of silver dollars per month tried
for time. If it did not, as confidently
believe, accomplish beneficial result,
and show how easy it is to
stop the depreciation Of prices, the
additional coinage might cease.
But even this increased coinage of silver
proposed by the first resolution will not
give US the currency we need. Remem.
Der, it will only make net addition of
about 81 ,08O, 900 per month after allow
ing for the present rate of reduction Of
national bank currency-(viz about
So, GOO, 900 per month";. |, therefore, am
in favor of any safe and feasible plan for
increasing the circulation OF, our national
banks. I believe good bank currency
is the best paper currency that can be
had. 1t is locally more elastic than any
other, as it is issued at once in the places
where it is most needed. would be in
favor of an additional percentage of issue
on the bonds deposited by the banks
with the Treasurer, or of issuing bonds
at lower rates of interest to the banks as
a basis of circulation. These, owing to
the rapid payment of the debt, are only
temporary expedients, which may result
in rapid contraction at some future time,
as the debt is paid. While advocating
them. however, as temporary measures,
L prefer a more radical plan, which l
deem to have been shown by the expe-
rience with our national banks to be per-
fectly safe, viz, the plan proposed in my
second resolution.
A circulation based on the general
assets of bank and constituted by law
preferred claim on those assets, when
limited to fifty per cent. paid-in capital,
is, in my opinion, with the safeguards,
other than bond deposit, that exist in
our national banking system, perfectly
safe. The notes being registered and
issued under the eye Of the Treasury De-
partment, there could not be over issues,
as there were under the State banking
systems of the past, and the aggregate
could always be controlled by Congress
and known to the public. This privilege
and the abrogatlon of the requirement of
a bond deposit, would attract to the sys-
tenn large part of the State banks of the
country, as they would have the prestige
of national banks without the loss that
now ensues from the deposit Of expen-
sive bonds, which is greater than the
profit on the circulation taken out. The
system would, by the legalizing of this
resolution, be vehicle of furnishing
perfectly safe circulation, and would be
much more popular than it is at present.
My third resolution is proposed to in
:dicate a practical way of settling the
Iquestion of bi.metalliem. It is the
fashion to say that nothing can be done
to rehabilitate silver unless the consent
of other nations is obtained. I believe
that an snitiatory step on our part is all
that is necessary to re.establish the bi.
metallic standard throughout the world
An increased coinage Of silver by the
United States, es allowed by present law,
if the Secretary Of the Treasury would
only exercise his discretion sufficiently,
would, in my opinion, make such q
revolution az to open the eyes of many
who harp on the necessity of international
agreements before anything can be DONE
But il an agreement is thought to be
necessary, let this association put itself
on record by adopting my resolutions. l
believe the United States, by authorizing
an increased coinage of standard silver
dollars. will give the impulse which
alone is necessary to restore it to its
former place as standard of value; but
this third resolution indicates our will.
lingness TO join with other nations to the
same desirable end. l, therefore, in
conclusion. now move that these Iesolu.
tions be referred to the Executive Council
ior immediate report to the convention.
| Ts, Gsnnh E.svarS.