The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-07-30
He Thinks the Letter and Spirit Of
tho Law WIN Be
Observed


e0t a0A0U uAIO t0lS mOIuAuH, 70 Wake ~
vantage Of the broad discretion vested In
the secretary, and against which many Of
tho silver party in congress declaimed 20
loudlyr'
''It is not. The law will be carried out in
letter and spirit just as congress int ended
it should be. We shall buy 1. 500, 600 ounces
every month without reservation and we
shall pay full market price for II. whatever
that may be. provided only that II falls
within the limit ret BY the terms Of the
law"
.rhere Is some question ~ to the efFect
Of the new law on the volume OF currency.
Whether it will be an imitation or notT'
the volume of money in circulation, and il
seems to me that that end 10 accomplished
by the new silver law. Aswo interpret that
here in the treasury, the currency in circu-
lation-or perhaps should say the money
incirculation, or the treasury. notes. will
tender money-will be increased by the en-
tire amount OF the aovernment's outlay in
it's purchase every month. Those who hold
contrary views proceed upon the assump-
tion that We shall use money now in the
treasury TO purchase this silver.
That 10 mistake. Under the act Of
1873 We purchased silver bullion with the
money in the treasury and Immediately re-
placed 1t with the silver dollar coined from
the silver 30 purchased; but although un-
der the new act we could, il the law so pro-
vided, purchase silver bullion with the sur
plus money in the treasury, we should
there thereby Y reduce 1 @ the amount Of money which
chase of bonds for the sinking fund and
the retirement Of the public debt. Az IL is
we shall add to the currency of the cOun-
try by the whole amount Of the purchase
required BY this, act q new form Of full
legal tender money. leaving the money now
nm sas ss.'lsy ssS q: 9; sass%S %
ernmsnt were ccmmittsd 20 ths pur-
chase Of, say, one ship every month Of the
value Of -, 100000 or &5,00O,O00. The cur
rency paid for each of the ships, IL not
drawn from the stock on hand, but issued
directly and expressly for these payments,
would go into circulation and increase
the volume Of currency after by just that
amount"
lis there any apprehension of the failure
of the law when it comes to the redemption
Of these silver notes in gold coinY'
I'VE do not anticipate any stress on that
account. The notes issued will have basis
satisfactory probably, to the mass of the
people, and / doubt whether there will be
any demand worth mentioning for redemp.
tion in gold. may cay this, however,
that the secretary Will meet every demand
for gold as long as he has dollars worth
left that he can use for that purpose. II
the supply runs dry he will resort to means
provided by law to replenish his stock o,
appeal to congress for further legislation -
"Will not the law of 1875. known as the
Sherman resumption act. give him all the
power he needs in such emergency
THAT is very widespread impression. II
has been held by Senator Sherman and
other distinguished fnanciers that the act
Of 1876 would answer all purposes. II YOU
will examine the act critically, however
you will see that there are some nice ques.
tions which you might trace, and whicn
would require a judicial decision, or at all
events, the opinion of some very high legal
authority to justify man of the cautious
temperament and careful methods OF Secre-
tary Window to act under it."
DO You consider the new law . good
Except that it calls for the purchese Of
q quantity of silver in excess Of the stock in
our market monthly for monetary purposes
I consider it very good law. Certainly
much safer than some which have been su9
gested. At any rate 1t ID the law Of til,
land. Congress made IL and We are here 4
carry it out. We shall execute it without
reference to whether We consider it an idea
law or not and to the very best of our abil
ity. Thus its merits will be thorough,
tested. No advantage will be taken OF an,
technical weakness it may seem to contain
for the purpose of defeating its operation
of that You may be sure. am even nov
making arrangements to increase the fire.
quency of purchasing, 10 as to prevent th.
loading up of the market and affordin1
greater convenience to the sellers"