St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-04-21
The Secretary Will Not Make
Any Further Sllver-Bill
Concessions.
He Says the Dangerous Edge
Of Peril" Has Already
Been Reached.
Redemption in Gold or Silver
Bullion the Only Safe
Scheme.
The Worlds Fair Bill to Get
the Attention Of the
Senate.

WInuOW CO-nlgnC permitted reporter
of the Associated Press to make copy
of the following, which is taken from a
letter addressed by him to Western
correspondent, in answer to comments
and inquiries upon the present status of
the silver question:
The bill recommended by the treasury
was framed mainly for two purposes:
First, to meet the demand for an in
crease of circulation; and second, to en-
hance the value of silver by providing
for it additional and safe use as money.
If approved by congress, it will, in my
judgment, accomplish both of these OBJ
jects, and at the same time afford fair
and just basis for harmony of action on
the silver question. To the silver
interests it offers every substan-
tial benefit that can be granted
without peril to our financial system.
and far greater advantages than can be
found in free coinage. To those who
demand ''more money! it offers an an
nual increase of from fifty to sixty mill
ions of dollars. To those who insist
upon sound currency it gives the
ampleSt guarantees against degradation
of the American dollar. But to those
who would initiate the currency by in
jecting into it a large volume of money
without adequate safeguards against
depreciation it offers no comfort what
ever. And right here is found the
secret of much of the opposition to some
of it's redemption features. In reply to
your friendly criticisms let me invite
your attention to the extraordinary con-
ditions which are offered to the silver
sentiment of the country:
First-It is proposed to absorb all the
silver produced by the mines and reduc-
tion works of the United States, thereby
withdrawing from the market nearly
one-half of the entire silver product of
the world, and thus greatly enhancing
the value of the whole.
Second-Not content with this conces-
sion, which is surely without parallel
as to any other product, the senate COM
mittee insists that the government shall
be compelled to purchase $4,500,000
worth OF silver in each month, making
S54,0OO00O a year, which, with the
amount needed for the arts and for our
trade with China. will exceed our own
production by absut S10,000,000 per an
mum. How is this excess to be obtained?
Only by purchase from abroad. In the
event of an unfavorable balance of trade,
when our gold will be most need at
home, we Shall be compelled to export
$4,000, 900 of gold, which we will then
sorely need. to pay for $4,000, 1000 of sill
yer which we will not need at all. This
compulsory purchase of so great al
amount will make the treasury the
largest operator in the most gigantic
corner" ever organized.
Third-The bill reported by the house
committee provides that the notes issued
for silver bullion shall be redeemed in
standard silver dollars if demanded by
the holder. This will give to the own
ers of silver bullion the power to con-
vert every ounce produced in this coun-
try into standard dollars at their own
will and pleasure. True. there is not
the slightest danger that this power will
be exercised, because no sane man will
prefer to convert treasury notes which
the government is bound to redeem in
gold or it's equivalent into standard sill
yer dollars unless he may want limited
number of them for some specific pur-
pose. Under this bill the government
will not force silver dollars into cir
culation, but it will permit any
one to have coined as many
of them as he can pay for with treasury
notes. What more can the advocates of
silver coinage demand? Surely moth
ing. unless they desire to compel the
treasury to force standard dollars into
our circulation for the sole purpose of
depreciatlng and degrading it. Is it not
enough that we take nearly half of the
worlds silver product and lock it up i'll
order to increase the value of the other
half; that we join the silver producers
in the most gigantic corner" ever Or
ganized, and that we give to the owners
of silver bullion the rightan the power
to convert every ounce of our prOduc-
ton to standard silver dollars if they
choose to do so?
For all these unparalleled concessions
to the silver interests, what is demanded
in return? Only the privilege of pro-
tecting the honor and credit of the ma
ton by grant of power to redeem its
notes in either gold or in its equivalent
of silver bullion. All of the bills on
this subject contemplate policy to ex-
tend over an indefinite period. and
which will result in the issue of very
large volume of treasury notes. If they
be made redeemabIe in lawful money
they must be paid in the best lawful
money, if demanded. in accordance
with the high rule of honor which this
government has thus far maintained,
and by which it has established credit
the pride and boast of our people. If
the balance of trade shall turn against
us; or If distruSt shall arise as to
our ability to pay in gold, as it surely
will, under such provision of law, or
if for any other reason we shall he un-
n, n RrQ6QQm Un1h whom do
mended, the government will be COM
pelled to discriminate against silver
dollars, when gold will at once command
a premium, and this nation will step
down from its present proud position
and take its place on the financial basis
of China. India and South America. 1t
is to save us from this danger that |
have insisted so strenuously for the
provision to redeem in gold or its
equivalent. of silver bullion. l
know of but two ways by which the
proposed issue of treasury notes
can be anchored to the recognized
values of the commercial world. One
is the Dullion-redemption feature pro-
vided In the treasury bill, and the other
is authority to sell bonds in order to
provide reserve fund to meet the con-
stantly increasing volume of treasury
notes. The latter / believe to be en-
tirely practicablesand safe. Even with
this safeguard against destruction to
the fair fabric Of our national credit,
the extraordinary concessions above
mentioded approach as near to the
dangerous edge of periP' as prudence
will dare to tread. Rather than go one
step further in that direction, l firmly
believe that it would be far better to
have no legislation OH the subject.