Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1891-11-19
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Secretary Fosters Silver Letter.
NEW ORLEANS, La, November 13.-The
National Bankers association, in session
here, heard read lettcr flom the secretary
of the treasury.
The letter recites the features of the silver
bill of the last congress; gives statistics of
operations under it, and continues:
while it is true that the amount of money
in circulation in this country at the present
time is greater than at any previous period
in our history, and more per capita than in
any of the leading commercial nations of the
world, with the exception of France, I am of
the opinion that, owing to our rapid growth
in population and wealth and the extraor-
binary development IN all kinds of business
yearly, the increase in our circulating me
dunn somewhat proportionate to our growth
IN population is absolutely demanded.
The issue OF treasury notes under this act
affords such an increase of perfectly conVen-
lent and sound currency. That this addition
to our circulation has proved beneficial was
forcibiy exhibited during the spring and
summer of the present year, when through
the necessity OF Europe, gold was Withdrawn
from this country IN large quantities, aggre-
eating in the brief period Of five months over
S72.OOO,oOO.
'.But for the substitute provided for do
nestle trade in the form of treasury notes
issued by the government in the purchase of
silver bullion, it Is probable that this country
would not have been able TO stand this enor-
nous drain of gold without producing strin-
gency in money markets and serious bust
ness disturbance.
Another object of the act of July IA, 1890,
was to provide home market for the silver
product of the United States by requiring
the purchase of quantity of silver approx
mating the monthly product of
mines. That this last absorption of silver by
the government for currency purposes would
cause rapid enhance in the value of SILVER,
was very generally believed. Under the ope-
rations of this law silver advanced from sc
cents per fine ounce on the LIST of January,
1890 to S1.21 on August 10, 1880. That it
has again refrigerated in price is owing in
part to the fact that because of the liberal
policy exercised by the treasury, as required
by law. in the purchase of silver, both as to
the quantity purchased and price paid, large
amounts of foreign silver we're attracted to
this market. Other causes have operated to
produce this result, prominent among which
is large falling OF in shipments of silver to
India and China
at is claimed by those conversant with the
product and movement of silver that when
the visible stock upon our market IS disposed
OF, the monthly absorption, AZ, 100000 ounces
of silver by this government, will have a
tendency to steady the price of the metal.
''If remonitiZation of silver as full legal
tender is ever to be accomplished, IL can only
be done by the action of nations of sufficient
commercial importance to maintain some
fixed ratio in tho coinage between the two
metals The new silver dollar is an important
step in that direction. 1t seems to me that
the act under consideration is a decided i'm
prOvement upon the provisions OF the act OF
1873, which it repeats, in that it furnishes
sound currency to meet the growing wants
of our country and has a tendency to reduce
the difference in value between the two met
ais, and thus help to restore the equilibrium
so much desired