Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1889-12-11
HONEYMOON WOULDSOLYE 1T
The Secretary of the Treasury Enlightens
Congress on the Silver Problem.


The Secretary of the Treasury Enlightens
Congress on the silver Problem.
WASHINGTON, d. c., Dec. 4.-Secre-
tary WINDOWS annual report was sub
mitted to both houses of Congress to-
day. The document attracted more
than ordinary attention, owing to the
interest taken in the silver question
and the Secretary's proposed solution of
the difficulty. Secretary Window says:
The continued COMA of the silver dollar at
constantly increasing monthly quota, is dis
turbing element in the otherwise excellent fnen-
cial condition of the country, and positive
findrHnce to any international agreement look
ing to the free coinage of both metals at fixed
ratio.
Mandatory purchases by the government of
stated quantities OF silver, and mandatory coin.
age OF the same into full leeai-telder dollars are
an unprecedented anomaly and have proved fu-
tle not only in restoring the value oil silver, but
even III staying the downward price OF t e metal.
Since the passage of the act of February %,
1873, 10 November l. 1885, there have BEEN pur
chased 299 SS9 4l6. IL standard ounces OF silver at
a cost OF 1886, $780, 63S GA, from which there have
been coined SAB ,63S 001 standard silver dollars.
There were in circulation OH November 1 of
the present year 60 e8 4S0 silver dollars less than
81 pr capita, the remainder. 2S3, $50 81, being
stored away in government vaults, ofwhIch SPIT, :
319, s44 were covered by outstanding certificates.
The price of silver on March l. 1878, was 81 10.
l6 pence, equal to 81 90 per ounce fine. AT
THIS price $2,UOOUOU WOuiQ purchase I,06U,IZ9
ounces of me silver, which would coiu 147,
205 standard silver dollars. At the average price
Of silver for the fiscal year ended June 80. 1889.
{42.499 pencil equivalent to SO. 93l63 per ounce
fine, S2,0000O0 would purchase 2,146,7 55 fine
ounces out OF which 2,775,62S standard dollars
could he coined.
quantity that must be purchased, aud the larger
the number of silver dollars to be coined, TO
comp with the act of February %. 1878
1t Is freely admitted that the predictions of
many of OR wisest tinanciers. as to when the
safe limit of silver coinage would be reached,
have Deen fulfilled, but 1t Is believed that
the inciples on which their apprehensiOns
were based are justified by The laws of trade
and finance, and by the universal experience of
cO-Operated to postpone the evil effects which are
sure 10 FOL ow the excessive issue OF all ovel-
valued coin. the danger Lone the less ex sts
Ii Enthusiastically true that, in this country,
public sentiment and commercial and industrial
necessity demand the joint use OF both metals as
money. Il Is not proposed to abandon the use of
either gold CT silver money; the utilization of
both metals as circulating medium aud as
basis for paper currency is believed to be essen
tial 10 our national prosperity. We cannot dis
card either II We would without invoking the
most serious cOnseQ uences. But the unprece-
dented change in the market value of the two
metals within the last sixteen years, and the
steady depreciation of silver in the face of the
large purchases on the part of this government,
arouse grave apprehensions and cause great diff
culties.
With stock of 34S. 63s 001 silver dollars, shar-
ing equally with our god coin the fuuctsOn of
ull legalteuder money well as $40, 800 600 sill
yer coin of limited tender, and al annual prod
uct OF silver from our mines apprOximatlng
$4,000 600 Coming yaluel, 1t would not be Tor
the interest of this growing country, nor would
it Oe wise public policy. to discontinue the use
of either metal as money. Yet 1t is equally true
that two widely different and constantly varying
standards. Ior the measurement of values are
Impossible in any permanent well-ordered
financial system.
While our circulation now embraces gold and
silver coin and four kinds Of paper money. there
10 iyar Iifv stflnQ mn cfQl I'd Moo
zion 35Il, Revised Statutes, provides that 1.-The
gold ooius of the United States shall be one
dollar p1 CO. which at the standard weight of 25.8
grains shall be the unit OF value" = Our
leg it. nder notes have behind them, in the vaults
OF the treasury, reserve OF 500 GOO 600 in gold
provided as guarantee for their redemption.
Our bank currency Ia based upon United st les
bonds. the principal and interest of which are
payable in gold. Our gold certificates are ex-
pressly made IT deemable In gold coin.
1t may be said that our standard silver dollars
and the certificates based upon them, constitute
au exception. They are an anomaly, the stand
ard Is nominaliy silver, but in reality 1t is gold
The bullion from which these dollars are coined
is purchased at its market price in go d. They
are made a legal tender, and are Receivable Tor
the government are, therefore, pledged TO make
them equal 10 their face value; and SO long
limits they will, in this country at least, be
maintaine at par with gold. Tne honor, as
well as the int rests OF the country, are involved
in the reservation of this parity. Equivalence
between our gold and silver dollar In foreign
trade is impossib e at The present price OF silver
out equivalence in domestic trade is practicable
so long the coinage OF the silver dollar kept
within proper limits.
Up to this time they have been maintained at
PR by force OF governmental authority, and by
the confidence OF the people in the good latin
and fin ancial power of the United States. Gold
is the real standard for the measurement OF
values and will remain SO unit lsupplanted by its
great rival, silver or until some international
agreement shall be entered into between gov
ernments strong enough to establish and main
tain fair ratio of value between the two metals.
Force applied through legislative action may
for a time control the laws of trade but eventu-
ally, those laws stronger than legislators will
assert their power. There are doubtless persons
who would Danish silver from circulation and
rely wholly upon gold, while others would make
silver the ouly standard and by adopting the
cheaper metal drive the deaer out or circula
,ion. If not out of the country; but an over
whelming preDonderance of pub 1c sentiment
demands that both metals be utilized
Z he problem, therefore, presented for our con-
sideration and which demands the action of
Congress, is not which metal shall use, but
''How shall we Use both?' Various solutions of
this problem have been proposed, among which
the following may be mentioned:
First. An international agreement fixing q
ratio between silver and gold, and op,ning the
free coinage of both metals, at the ratio so es-
tablisLed.
In such concert of action, if it could be Sc
cured. is the final and satisfactory solution of
the silver problem. The Iolicy OF promoting 1T
was instituted by the United States in 1878. The
and was fully set Tor and justified In two in
ternat:onal conferences. Unfortunately, some
OF the most powerful nations are not yet ready
TO act Public sentiment, even in those cOun-
tries seems to be steadily moving in that direc-
ton, but thus far substantial results have
been achieved.
1t Is believed by many persons, well informed
on the subject, that eventually the evils ana en-
barraSsmeuts OF the present condition affairs
will become so intolerable as TO force the most
reluctant nations into agreement for the re-
monetization of silver upon some fair ratio. 1t
has cen proposed, by persons of the highest
financial standing, to has en- this result by stop
ping the purchase of silver by the United States
and by throwing an additional so DOC, 900 ounces
annually VI on the market to precipitate so sud-
den and great tali in its price to create seri
Gus financial disturbance throughout the world
and thus compel a speedy international
adjustment of the silver question.
This policy might prove the shortest
way of reaching the desi ed result, but
Ii would probably be attended by commercial
and industrial disasters in this country well
abroad, which conservative statesman ship shou
seek TO avoid. Some other less dangerous solu-
tloH should be found il possible. The modifica-
ton of this PROPOSAL, liking date in the future
for suspension in case no cooperation in the
maintenance OF silver on the part of other ma
lions Should be forthcoming, reduces the dan
ger, but does not en- Trey remove 1t.
Second The present policy of purchasing and
coming $40 0.000 worth of silver per month
This is now approved by nobody. The so-called
silver men DDOse it. because IL does not go far