Los Angeles herald., 1890-05-16
A Strong Argument in Favor
of Free Coinage.
Coke Also Opposes the Bill as a
Temporary Measure.
Too Much Discretion Given the Secre-
tary of the Treasury.
Governmental Purchases Liable to Cease
Entirely Under the Proposed Meas
ure-Sherman's Amendment.
Associated Press Dispatches. |

bills reported in the senate from the
committees and placed on the calendar
were the following: Senate bill to pro-
vide for the adjudication of claims aris-
ing from Indian depredations house bill
granting pension to Mrs. Julia Parnell.
The senate then resumed consideration
of the silver bill, and Teller continued his
argument in criticism of it.
There were two features of the bill
which should be amended, he said, if
the bill was to perform two things which
its friends proposed to accomplish by it,
that was to raise the price of silver and
to give the country an increased circula-
ton. 1t was absolutely essential, in the
first place, that the treasury note pro-
vided for in the bill should have the
highest possible money function. If one
of the principal duties of money, the
discharge of Indebtedness, was denied it,
its depreciation and the suspension of
silver purchase under the bill would be
invited.
He did not deny that the passage of
the bill would put the price of silver up.
Its very introduction had had that
effect. Why? Because it was apparent
to people abroad that if the United
States government consumed the entire
silver product of the country, Cone
third of the worlds product), there
would be demand for silver that could
not be met. 1t might put the price up
to par. He did not know exactly what
par would be. He supposed $129 per
ounce would be called par in the United
States. 1t would be less in Great
Britain, and less in Europe. If it put
the price One-eighth of one per cent.
above par, the purchases of the govern
ment under the bill would cease, and
the great interests arrayed against silver
would obtain their ends.
This was no vain supposition, no
imagination on the part of the people
who wanted to have silver used as coin.
1t was borne out by the facts. There was
party, not in the United States alone,
but all over the world, that held the
credits of the world, that took toll from
all quarters, that levied tribute on all
enterprises, and that was arrayed against
silver as money. For seventeen years
that party had held back the whole
civilized world. 1t had its seat in
Europe. but it had its influence here.
1t had added one-third to the material
debt of the United States by legislation,
and had added an equal amount to the
state, municipal and individual debts
Those people had enriched themselves
at the expense of the many. Colossal
fortunes had been built up in the United
States and Europe within the seventeen
years which had no parallel in the his
tory of the world-fortunes equal in eX
tent to those brought back to
Rome by the conquerors who invaded
Asia and did anybody believe that these
people were now ready to surrender
their vantage and adopt a financial sys-
tenn that would relieve the tax-ridden
debtors of this country and the world
and put them back on the plane where
they were in 1878?
The energies of those people were be-
yond calculation. Their avarlce was
only equaled by their energy. They
could put silver at and above par when
they wanted to, and if they could thereby
destroy silver as money metal, and
when the United States government
would not buy silver under the pending
bill, they would come back and say,
"We told you silver would not do for
money; we told you it was not suitable
as money metal, and that you have to
go back to the only suitable money
gold" Was it a delusion, he asked, to
suppose that that would be done?
He suspected that those people would
do anything within the range of legisla-
tive enactment or of commercial trans
actions to accomplish this purpose; and
any bill which contained a provision
which would allow such state of affairs
was not perfect bill.
Butler invited Teller to give his idea
of the effect of the free coinage of silver
on the international monetary arrange
ment.
Teller said that everybody had to ad-
NIT that the proposed bill, whether it
were scheme OF the secretary of the
treasury to pile up bullion fin the treas
ury department and pay it out on the
demand of holders, or the amend
ment reported by the finance commit
tee, was temporary affair. Not one of
the finance committee would claim that
it was a permanent thing. They
said it was temporary; they were
waiting to see what the current
of events was going to be, and they said
to the friends of silver coinage "You
ought to accept this bill. 1t is not, it is
true, full restoration of silver to its
money function, but it is a halfway
house at which you can stop for a while
and, when you have gathered strength,
60 on"
The bill, he said, was a halfway
scheme. 1t afforded no relief whatever
except in making a special market for
silver in excess of the present govern
ment demand of two millions a month.
If it was proposed to restore silver it
would have to be given its full money
function. There were at least nine men
in the world calling for silver as against
one man calling for gold. Silver was
better adapted for use as money than
gold. While he was himself a BIZ
metallist, if there was to be only one
money standard, he would welcome
silver basis in the interests of the race
and of the people of this country, and
the sooner it was reached the better for
American industry, the better for COM
merce, the better for trade, the better
for everything.
Hoar inquired whether, even without
the demonetization of silver in 1878, its
price would not have fallen.
Teller replied that when silver was de-
monetized silver dollar was worth in
trinsically dollar and three cents and
fraction. There was nothing at that
time to indicate that silver was going