The advocate., 1890-10-01

/ into effect the provisions OF this act ia here
by appropriated out of any money Ia thC
treasury not otherwise appropriated.
lie issues his drafts upon the treasury foi
the purchase money of tho bullion. 40 the
mint they give a certificate for the weight
and value Of the bullion which, when pre-.
5ented 10 tho treasury, authorizes the pay.
ment Of the amount in treasury notes do.
scribed in the law. The secretary OF the
treasury has no right 30 pay for silver bull
lion anything but these TREASURY notes; and
the law was purposly 80 guarded In order Ia
require the issue therefor of these treasury
notes. and thus 10 increase day by day, by
the purchase Of silver bullion, tho amount
Of money in circulation.
These treasury notes had 10 be unfortu.
natoly issued in large denominations, but
the reason was obvious and made known al
the time the law passed. There we're only a
few days comparatively 10 prepare for the
execution of this law after its passage. The
department could not prepare aud issue the
smaller denominations which they are be-
ginning TO DO able 10 do now, and 80 they
had 10 issue the larger denominations, which
they we're authorized 10 issue in order 10 got
enough out TO meet the monthly payments.
These large notes necessarily do not enter
into the general circulation of the country,
nor was IL in the power of the secretary Of
the treasury to issue the notes any faster.
/ know that the bureau of engraving was
run night and day in preparing them. Sem
ators may have seen IL lighted up brilliantly
at night.
Mr. Stewart. understand all that, and
l understand ii Is running now, and perhaps
il was necessary TO issue large notes in the
beginning In order TO meet the emergen.
cies thoy placed in the subtreasury at New
York a quantity Of large bills and then al
lowed the other points at which purchases
we're made TO draw drafts or checks on tho
subtreasury at New York. Now the point is
that these checks when they are drawn are
not allowed TO go throegh the clearing
house, and II is alleged, whether truthfully
or not, that 1t is the regulation Of the sub
treasury at New York that required them TO
60 directly TO him and not to the clearing-
house,
Mr.. Sherman. The law provides for di-
rect payment in treasury notes in 30 many
words and in no other manner. He cannot
pay them through the clearinghouse. The
clearing house is a convenient arrangement
for general payments, by an exchange Of
debts and credits, but this law requires that
they be paid notthrough the clearinghouse,
not by the payment Of balances, but direct
ly in these notes. That was intended and
was absolutely necessary TO secure the issue
and circulation Of notes TO the full amount
Of the bullion purchased.
Mr.. Stewart. What difference does II
make to the secretary of the treasury OF 10
the subtreasurer when a check or draft il
drawn from San Francisco on the subtreas.
urer, who presents il; whether IL ia done
through the clearinghouse or anybody else?
When IL is presented then he pays treasury
notes. and If the party desires redemption
he pays in gold, and IL does not make any
difference TO tho subtreRsurer whether 10
goes through the clearinghouse or not.
Mr. Sherman. have no doubt IL a draft
should come in the ordinary course TO any
bank in New York IL might go 10 the clear
ing-houso, but il must be paid in treasury
notes and not by offsets. Whether the clear
ing-house arrangements permit this mode
of collection do not know, but the law re-
quires that they be paid az have stated
Mr.. Stewart Oh, yes; when they get
through they are as good as any other
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