Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-11-13
A DEBATE ON SILVER.
Mr.. st. John, of New York, Outlines
His Proposed Financial Law
AT THE CONVENTION OF BANKERS.
He Is Opposed to the Monetary Policy OF
Senator Sherman.
TIE PLAN CRITICISED BY MR.. J. J. KNOX

TIE PLAN CRITICISED By MR.. J. J. KNOX
New ORLEANS, Nov. 1.-THE Ameri-
can Bankers Association resumed its ses-
sion to-day, and the silver question had the
right of way from the start. W. P. St.
John, of New York, read a paper on the
solution of the silver question. In open
ing he paid his respects to John Jay Knox,
because in an interview the latter said that
the silver question was dead and that
Cleveland would be the nominee of the
Democratic party.
Mr.. ST. John argued that the results OF
the recent elections were encouraging to
free silver, and he doubted if Mr.. Knox, as
Republican, was in the confidence of the
Democratic party as to its nominees. In
his paper, Mr.. ST. John made the following
proposition:
Cease buying silver bullion and restore
the United States coinage system founded
with the Mint in 1892, and only abrogated in
1873. That is, reopen the mints equally to
unrestricted coinage for gold and silver.
Legal Tender Notes at Coin Value.
As the best method, allow owners of gold
and silver to receive legal tender notes at
their coin value, instead of coin at their
option, the notes to be redeemed in either
coin, al the Treasury's option, but the Sec
retary to redeem in bullion at not less than
the coin value thereof on request of note
holders: a moderate coinage to be prescribed,
all remainder to be coined or not at the Sec
retary's discretion; all the gold and silver
bullion and coin resulting to be held as dol
lar for dollar metallic reserve for the notes
outstanding: all treasury notes of the act of
1890, and gold anG silver certificates, when
received, to be replaced by the proposed
new notes secured as provided and redeem
able prescribed; the President of the
United States to be required to proclaim our
adoption of the European coinage ratio for
rold and silver when Continental Europe
reopens its minis to silver; our mints there
upon buying up our silver dollars then out
standing at a premium of cents each, and
replace them with silver dollars containing
800 grains pure silver.
BY such provisions of our statutes. and
without international enlargement, we as
sure Europe against flight of our silver
dollars for recoinage at their mints and as
sure ourselves against such a contraction of
our current money whenever Europe re-
opens her mintS to silver.
The Benefits of the Speakers Plan.
As to likely achievements of the measure,
if enacted entire, Mr.. st. John discusses as
follows:
1t would tend to unify the currency by
providing single automatic issue in lieu of
any capricious issue of circulating notes.
These notes will be redeemable in coin, our
coin-reserve provided for them being at the
face amount of the notes. The bi-metallic
single standard dollar of the United States
would for the present be coined of either
S7l25 grains of pure silver or 2S % grains of
pure gold, each properly alloyed. The sill
yer dollar would be reduced and replaced
by dollar coin containing 360 grains of
pure silver whenever the importan mt nations
Continental EurOre their m n
silver, and the supplies of gold and silver
available will always determine our volume
OF money.
Mr.. ST. John dismisses the alleged i'm
pending avalanche of Europe's silver with
statistics of the financial condition of all
the European nations in detail, showing
their need of their present silver money in
every case. His proposition contemplates
the refusal of gold for the legal tender notes,
and their redemption bv silver only if ever
the Secretary of the Treasury suspects a
flood of foreign silver for our gold.
Opposed to Senator Sherman's Attitude.
In opposition to Senator Sherman's pro-
nounced attitude as to silver monev Mr.. ST.
John quoted England's present First Lord
of the Treasury, supported by the eminent
professors of political economy of Oxford,
Cambridge, Edinburgh and Liege Universi-
ties.
Mr.. st. John furnishes statistics of the
production, consumption and coinage of
silver, showing the present annual absorp-
tion exceeds the present annual production,
and the Treasury is unable to continue OBJ
tanning the amount now required by law at
the maximum price prescribed. Hence the
act of 1890 will gradually but irregularly
advance the price to one for BIZ grains.
Therefore, free coinage, by fixing that as the
minimum price at once and thereby estab-
fishing even exchange between the far East
and Europe, will greatly enlarge China's
and India's absortion of silver annually. In
consequence, free coinage will diminish the
annual silver addition to our currency COM
pared with that addition under our present
law and necessitate a material increase in
the worlds production of silver to meet the
demands Of trade for money.
European Silver and Gold.
He urged that Europe's stock of silver is
the equivalent at home of her gold. 1t
could be recoined in India at a small
premium in the exchange but could only
be recoined in the United States at a liberal
discount and at resulting large contrac-
tion of Europe's currency. The Bank of
France could trade off 20 per cent of her
stock of silver at premium in trade settle
ments with India this year. Her stock of
silver, exactly like her stock of gold, has
all been accumulated as reserve against
vast liabilities. Hence the Bank of France
is not more concerned about the bullion
value of be stock of silver than banks in
the United States are concerned about the
paper value of the legal tender notes.
At the conclusion of Mr. St. Johns paper
he was loudly applauded. John Jay Knox
then took the floor, and begging the in
dulgence of the Chair, said that he fully
agreed with Mr.. st. John in some of his re-
marks. After citing certain facts and Civ
ing figures, he said that some time ago the
Mexican dollar was to be found in nearly
every bank in this country, but to-day,
where were these coins?
The Silver Situation in Mexico
They had been sent back to Mexico in
of goods, being accepted at their
face value less transportation to Mexico.
Why was this? Because the Mexicans have
the advantage of free coinage. We have
dollar which will not be accepted in Mexico
for its face value. and yet this country has
a credit which is unsurpassed by any coun-
try in the world.
Mr. ST. John replied that it was mis-
taken idea to compare the United States
with Mexico, because all of the latter's pro-
ducts were beneath the soil, and though she
needn't coin a cent, all her gold and silver
would naturally go away from her, while in
the United States all the products were
above ground.
Mr. johnson, of Birmingham, made few
expressing his satisfaction in re-
gard to Mr.. ST. Johns stand in favor of
fair currency. He said that it was a race
between white metal and the colored metal,
and he did not want to see the colored metal
put ahead of the white metal He announced
himself in favor of reciprocity, and against
artificial laws which admitted one product
and excluded another