The advocate., 1890-11-05
THE SILVER BILL.

The secretary Of the treasury fnda
il necessary at this early date 10 e1-
plain the operation Of the silver bill.
II is not having the effect Of putting
more money in circulation, as It's re-
publican advocates claimed il would,
and the secretary deems il prudent 10
explain TO the people. A short time
ago we published a discussion that
occurred in the Senate upon a
resolution offered by Senator Plumb,
which shows the practical operation
Of the law. The resolution is an fol-
lows;
Resolved That the secretary Of the treasury
be directed 10 inform the Senate whether the
rule or policy OF his department which requires
the payment OF checks issued In payment for
silver bullion purchased under the recent act Vt
Congress over the counter OF the ubtreasury,
instead Of through the proper clearing house,
denominations instead OF those suited for clrcuIa.
ton and use In the ordinary business tmnsac.
tlons of the people, and whether such method Of
payment does or does not practically result In
the payment Of such checks IN gold coin instead
OF treasury notes.
In Che discussion of this resolution
the fact was developed that in the
purchase Of silver bullion the secre-
tary Of the treasury issues his checl,
upon the sub-treasury Of New York
City, and that Wall street spectators
in bullion present these checks and
receive gold for them instead Of silver
certificates as the bill ostensibly con-
templates II was further developed
that the certificates that we're issued
were of large denominations entirely
unauited to the purposes of business
Owing to the vast importance OF the
we reproduce a part of Mr..
Plumbs remarks.
The Vice President The question Is on agree.
Ing 10 bhe resolution.
Mr.. Plumb, / wish 10 put IN the following
statement here from the financial article Of n
New York paper Of the nth day Of the present
month.
"Persons who have made up calculation from
the monthly statement OF the United States
treasury claim that 10 shows that Of che $4,000
OOO OF new treasury notes issued In payment for
silver bullion S2233, 100 have already been pre-
sented for redemption In gold, thus leaving only
sl,375,mO In circulation. This statement cannot
be fully authenticated nj the ub.treasury here,
but the treasury officials say great part Of the
new notes have come In for redemption"
II that is correct, Mr.. President, and the state
nent contained In the letter which has been
read at the desk Is also correct, the mOdus Oper.
lnd is very simple, The checks are issued In
The payment Of the silver bullion that is pur.
chased, and as they can not be used at the clear
ng-house as ordinary government drafts and
checks and bank drafts and Individual checks
are, they go at once to the sub-treaury.
Mr.. Teller. | should like 10 ask the Senator
4 he can state why they cannot be thus used2
Mr.. Plumb. | do not know the reason why
hey cannot be so used. On the contrary, have
no doubt the entire mercantile community and
everybody interested would be glad 10 have t
lone. They 20 TO the sub-treasury. Manifestly
he person who goes there with draft 10 get Il
paid will take large bills as a matter OF con
.enience II he takes bills at all. Therefore the
bills which go out are not OF denomination
which would naturally be made use Of In the Or
iinary transactions OF the people, and that Of
tself would result in q very considerable contrac-
ion OF the currency.
The Senator from Iowa and other members OF
his body will specially remember the contention
here was In this body over Che question OF the
ssue OF treasury notes Of large denominations