New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-12
treasury Department.

Washington, ~. G., november D, 1881.
eentemen response 10 the request contained 10
osr csa,1a hcaon vi JGe 19lh ult. t1lat prepare
issr upon INC operation VI tae al O 0 IA, i59V, "
- ead De.ore the annual convention OF BANKERS nave
Toe D,sDor " suOnlt Tue iOIlOwias; ~
The essential proviSJns Of the law Cd July IL, leso'
are these: H., -, -. -. .,,,n.o. 20 4 400
oOo ounces OF silver at tue market price.
Payment 10 u na..e III d new form o. paper
rooaey deaOR. lIateIi Treasury nCIee.
AV Ibe noles 70 be fi leeaitender for all debts.
public A.e private, AID 10 10 heId ny any NATIONAL
n Is declared 10 he the policy VI the United states
70 msiuIn th Two metals Oh parity Win each otd.r
al hS plc.eDt leea4 F&tdo, OF sUcA i"e" 90 i"' w
IsS million ounces OF silver shall be coined
uonfAy INTO silver dollars until July l, 1Ssl.
81 Atter JUN /, 1871, the compulsory coinage Of
diver ooAss only such ooL-ls need De eoilAea
a aecessAgy hor the redemption ~ ireaSy 1etss'
T. The provision VI the ACT Of fcUnEay 90 tpIo,
reoullg he mOntaly purchase and coinage into sliver
dollars " mol less than S-,OOO,OOo, hor more aiali
SsOOOOOO WORTH OF bullion, Is Tepealed -
Ire moneys on deposit Win The Treasury for the
plOn OI National bank notes are coVcfeo lnIe
the Treasury, and retired CahA nO'es aIe I" NC &c
deemed from current cash. 49,, N,
me amount OF silver bIllion purchased with Treas
NY notes the provisions Of the new law. rom
August 49, iogO 10 November l. 1881, mas aggregated
66,5so,536 ne ounces, costing Soo o@oooo al a'eise
From ths silver y o4o 475 dollars have been coined,
and the remainder is stored, in the shape OF nne bars
An me vaults OF the m.nis as reserve against the
W6is lie new silver law provides for the purchase
o, nearly two and hal times the amount Oh sle n
required by the Act Of 1875, the compulsory coinage
and Issue oi 2,OOO,OOO silver dollars monthly and OF
silver certificates representing such dollars Is ooie
away with II leu Of such dollars, United states notes VI
pay ing power, redeema6e IN gold or SILVER CON-
at the op0n secretary OF the Treasury and nav
Ing behind them practically gold COLLARS worth o.
The new law provides for annual increase Of our
CURRENCY, appIOAmsdng ~5OOVOoOO or, dedHctilg tle
average retirement OF National BANK notes IN recent
years, annual addition 10 our circulating meolum OF
S24OOO.OOo.
While IL is true that the amount OF money in circus
ton TINS country al the present time greater tnan
az any previous period IN our lsIoy, ana more per
OF the world with the single exception OF France,
population ana wealth. and the extraordinary devep-
ent In all kinds of business, yearly increase In our
SISTta" in population. is mpetiv9iy demanded
The issue OF Treasury under this act affords an
based dollar for dollar upon the cost value Of silver
bullion, redeemable on demand in gold coin, ana WIN
the pledge OF the Government TO naIhun IL AZ pa1,
beneficial was forcibIy exhibited during the spring
necessities OF Europe, gold withdrawn from thls
country large quantities, asgregaatIHs' III oiD0
period Of tive months. over S1!,0OOOVV. -. -, =.
hui for the substitute provided for domestic trade IN
be form of TREASURY Dotes issued by the Government
this country would not have been able to stand tins
enormous drain of gold without producing stE1neeney
In the money market and serious business dlsWfDahce
Another object OF the act OF July Ia, doIV, S +Ss
provide home market for the silver prOduct oi I'D, Gt
United states by requiring tie purSiseS VI 90 nH,
Of silver approxmatins the monthly proouot Oh ou
nnes. IT,, =, .,,o f,ors.r
That this large absorption OF SILVER Dy "a" -
ment for currency purposes would cause q IaR ~
enhancement in tine value Of silver was very seneiais
believed Indeed it was hoped thai Ine nc tS;a W
the value Of silver under the OPERATORS Oh une Nv,
vOud be so great and OF so permanent naeIiv .,
point would soon be reached when we co u VII"
safety open mnts 10 the free coinage OF suNerc
Under the Operations Of this law silver advanced
ron SO cents per fine ounce on the nrst Oh JANUARY
That has again refrigerated in price Is OWING T9cy
part 10 the fact that because Oh tae noersi RO ths
exercised by the Treasury. a. required py h~, ~ va
purchase OF silver both TO the quantity purchases
and the prce paid. large amounts Of loeieh sNer e
otber cause Which cannot enlarge upon, have
operated u produce this result prominent among ".t
Ipdis and 5hina The shipments OF silver from London
10 India during the first nine months OF the pi'sea,
calendar ve1r sbow a reduction of over 81 100000
AZ eonpared with the same period Of the prior year.
while tlle shipments Of silver 10 China snow even
II Is claimed by those conversant with the product
and movement Of silver that, when the ylslpe ST.
upon our market disposed OF ue motS aDsU iii
Of 100000 ounces Of silver by this Government WI
have the tendency efectuay and permanently " s''a'
II the NATURALIZATION of silver as full legal-tender
money ever 10 be accomplished ii can only De oone
BY the action Of nations OF sufficient commerclaI IN
pOrtanoe 20 maintain some liked rauo III c0iil'se 10
The new silver act is an important step in tla di
direction: o. Because the compulsory coinage Shu
Issue u silver dollars II less in rnsic value than their
nominal value is repealed @ because IL pro'T, r
nneh larger absorption OF Sliveo Dy r md tSi he
the new law declares that II Is the establshel
P0ey OF TIC United states 10 HalnIdin tie wv" "0'
parity with e9o other L., &. .
II seems u me that the act under consideration ID
,sad Improvement upon the PROVISIONS OF te aTo "a
lsIe which 1t rcpeas, in that IL furnishes sOunu
currency 10 meet the growing wants OF our country,
snc has tendency 10 reduce the difference IN value
between the two metals. and thus help 10 restore the
equilibrium 50 much desired. Very respectfully,
CHARLES FOSTER, secretary
Professor Hadley, OF Yale, delivered an able snoress
on recent railroad legislation and its effect upon the
finances Of the United states, protesting against I'M
heessay legislation which the professor asserted mao
gftsty Injured the railroads of the country. 49,.
George : Coe, OF New York, opened the discussion
On the banding system and the currency OF the future