The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1890-07-28
THE CURRENCY WILL DE ExrASnrn


THE CURRENCY WILL De EXPANDED,
There has been some question as to
the effect Of the law upon the volume OF
currency, some holding thatthere would
be no increase in tho amount OF money
in circulation, and others contcndiny
that there would be. Concerning that
feature Director Lecch said:.
Congress certainly intended to es-
pand the volume Of money in c%ircula.
ton, and it seems to me that that end il
accomplished by the new law, Al We
interpret that act here in the Treasury
the currency in circulation-or perhaps
| had better say the moneyin circulation,
for the treasury notes will not be mere
promises to pay, but full legal.tcnder
money-will be increased by the entire
amount OF the Governments outlay in
it's purchases every month. Those who
hold a contrary view proceed upon the
assumption that we shall use.money now
in the Treasury to purchase this silver,
That is a mistake. Under the act
OF 1878 we purchased silver bullion
with the money in the Treasury, and
Immediately replaced it With the silver
dollars coined from the silver so pur.
chased; but although under the new
act we could, If the law so provided. pur-
chase silver bullion with the SURPLUS
money in the Treasury, we should there.
by reduce the amount OF money which
could be put into circulation by the pur-
chase OF bonds for the Sinking Fund
and the retirement Of the public debt.
AS it is, we shall add to the currency OF
the country by the whole amount OF the
purchases required by this act a new
form Of full legal.tender money, leaving
the money now in the Treasury for the
purpose already mentioned. By way OF
Illustration, tho situation is tho same as
if the Government were committed to
the purchase Of, say, one ship every
month, Of the value Of 81, 500, 900 or
S5,000,GW. The currency paid for each
Of those ships, il not drawn from the
stock on hand, but issued directly and
expressly for these payments, would 60
into circulation, and increase the vol.
ume Of currency afloat by just that
amount"
TROUBLE FEARED FROM REDEMPTION.
Another point against the law was that
when the time came for redeeminp the
silver certificates in gold coin the law
would fail, but Director Leech has no
apprehension on that score. "The notes
issued" he said, shave a basis satisiacto.
~, probably, to the mass Of the people,
and l doubt whether there will be any
demand worth mentioning for redemp.
ton in gold. I may Say this, however.
that the Secretary will meet every de-.
mand' for gold rs long as he has a dollars
worth left that he al use for that pur.
pose. II the supply runs dry he viii re-
sort to means provided by law to replen.
ish his stock, or appeal 10 Congress for
legislation. There is an impres.
sion that he car secur all the power he
needs in such IN emergency from the
law Of 1875, known as the Sherman Re.
sumption act, and it|has been held by
Senator Sherman aud other noted fuan-
cier5 that the act OF 1875 would answer
all purposes. II you will examine the
net critically, however, you will see that
there are some nice questions which |
might arise, and which would REQUIRE a
judicial decision, or at least the opinion
Of some very high legal authority, to
justify a man Of the cautious tempera-
.ent and careful methods Of Secretary
NVindnm in acting under tn '"