Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-12-04

DeLeVed 10 De essential TO our natlOnal pros
perity. We cannot discard either II we would
| without invoking the most serious conse-
| quences. But the unprecedented change in
| the market value of the two metals within the
| last sixteen years, and the steady depreciatio
| of silver in the face of the large purchases on
| the part of this government arouse grave ap-
prehensions and cause great difficulties"
| The problem, therefore, presented for con-
sheraton. he says, and which demands the
| action of Congress, is not which metal shall we
use, but "How shall we use both?"
THE szcRErARY's PLAN.
After discussing several plans the Secretary
recommends the following plan, which he has
prepared after very carefulstudy Of the ques-
ton:
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 i'll silver dollars,
at the option of the holder. Repeal the COM
pulsory feature of the present coinage act.
| The Secretary" the report says, desires to
call special attention to this proposition, be-
| lieving that in the application of its principles
| will be found the safest, surest and most salts
factory solution of the silver problem as it is
now presented for the action of this country.
! In explaining the proposed measure, at this
time, 1t is intended to deal only with its general
] features, but. if desired q bill embracing the
details believed to be necessary to its salts
! factory operation will be prepared and sub
mitted for the consideration OF Congress.
| The proposition 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 412.5 grains of standard silver at
the time OF deposit to be paid in Treasury
notes; said notes to be redeemable in the guam
tity 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 receivable for customs, taxes and all public
! dues; and when so received they may be re-
issued; and such notes, when held by any
! national banking association, shall be counted
| part of its lawful reserve.
The Secretary of the Treasury should have
| discretionary power to suspend, temporarily
| the receipt of silver bullion for payment in
| notes, when necessary to protect the govern
ment against combinations formed for the pur-
pose of giving an arbitrary and fictitious price
| to silver.
| II the price of silver should advance between
| the date of the issue of note and its payment
| the holder of the note would receive a 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 re-
deem in gold are three-fo!d: First 1t would
give additional credit to the notes. Second. 1t
would prevent the withdrawal and redeposit of
silver Tor speculative purposes. Third. 1t would
afford convenient method of making change
when the weight of silver bars does not CORE
spond with the amount of the notes.
ADVANTAGES OF THE PROPOSED MEASURE.
among the obvious advantages of the meas
ure proposed" says the report, '.the following
may be briefly stated:
First 1t would establish and maintain
through the operations of trade a convenient
and economical use of all the money-metal in
the countr". Second. 1t would give US a paper
currency not subject to undue or arbitrary in
f1ation or contraction. nor to fluctuating values
but based, dollar for dollar, OH bullion at its
market price, and having behind it the pledge
OF the government to maintain its value at par,
1t would be as good as gold, and would remain
| IN circulation, as there could be no motive for
demanding redemption for the purposes of or
binary business transactions. Third By the
utilization OF silver in this way market would
be provided for the surplus product. This
would tend to the rapid enhancement
of its value, until a point be reached
where we can with safety open our
minis to the free coinage OF silver
| Fourth. The volume of absolutely sound and
perfectly convenient currency thus introduced
into the channels of trade would also relieve
gold OF a part of the work which itwould other
wise be required to perform. Both of the
causes last mentioned, it is confidently believed
would tend to reduce the difference in value
| between the two metals and to restore the equi-
hbrlum so much desired. 1t would furnish
perfectly sound currency to take the place of
retired national bank notes, and thus prevent
the contraction feared from that source
Fifth 1t would meet the wants of those who
desire larger volume OF circulation, by the
introduction Of a currency, which, being at all
times the equivalent of gold, would freely cir
culate with it, and thus avoid the danger of
contraction which turks in the policy of in
creased or free coinage of silver, by reason of
the boarding or expectation of gold. Sixth
1t should not encounter the opposition of those
who deprecate imitation, for though the volume
OF currency may be somewhat increased the
notes would be limited to the surplus product
silver, and each dollar thus issued would be alb
solutely sound and would represent an amount
OF bullion worth a dollar in gold Seventh
1t would be far more advantageous to silver
producers than increased coinage under
existing law, for in both cases bullion would
be paid for at its market value, and under the
plan proposed much larger amount could be
used with safety. and while increased coinage
would arouse the fears and encounter the OPP
position of very large and powerful class of
people, it is believed that this measure would
meet With their acqulescence. Eighth. There
NOuIu De no possibility OF loss TO the holders
of these notes, because in addition to their full
! face value in bullion they would have behind
them the pledged 'aith of the government to
redeem them in gold, or its equivalent in silver
| bullion. Ninth. The adoption of this policy
and the repeal of the compulsory coinage act,
would quiet public apprehension in regard to
the over-issue OF standard silver dol
lars, and the present stock could there
fore be safely maintained at par.
Tenth. This plan could be tried with perfect
atv and hall NIT N
our interests. Should it prove a successful and
satisfactory plan for utilizing silver as money,
other nations might find it to their interest to
| agreement, and should concerted action be
secured.
| BY this method it is believed that 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 former equilibrium of the
money metals
| The Secretary then points out and answers
the several objections that may be raised to the
plan.
He deprecates the policy of depositing large
| sums OF government money i'll national banks
| He recommends also that sufficient number of
cruising vessels be chartered to assist the reve-
nue. cutters in the protection of the seal fish
cries i'll Behring sea.
THE DISTRICTS FINANCES.
After giving statement of the receipts and
| expenditures and operations of the sinking
fund Of the District, as shown by the reports OF
| officers already published in THE STAR, he
speaks of the fact that of the bOndpd