Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1891-11-26
METAL AND MONEY.
Secretary Foster Gives His Views on the
Financial Question.

At the recent meeting of the Ameri-
can Bankers Association held in New
Orleans, letter was read from Secre-
tary Foster in which he express him
self as follows regarding silver:
The amount of silver bullion pur-
chased with treasury notes under the
provisions of the new law, from Au-
gust Is, 1890, to November 1, 1891,
has aggregated 665, ,0SS, $50 fine
ounces, costing $6S6, ,265, $50, an av-
erage cost of ST. .O3 per fine ounce.
From this silver S27,S4S,475 have
been coined and the remainder is stored
in the shape of fine bars in the vaults
of the mint as a reserve against the
treasury notes outstanding. While it
is true the amount OF money in circu-
lation 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 COM
mercial nations of the world, with
the single exception of France, l am OF
the opinion that owing to Our rapid
growth in population and wealth and
| the extraordinary development in all
kinds OF business yearly increase in
our circulating medium somewhat
| proportionate to the growth in popu-
lation is imperatively demanded. The
| issue OF Treasury notes under this act
affords an increase of perfectly consti-
tutional and sound currency based
dollar for dollar upon the cost value
OF our silver bullion, redeemable on
demand in gold coin, and with the
pledge of the government to maintain
| it at par. Another object of the act
was to provide home market for the
silver products of the United States
| by requiring the epurchase OF a quantity
OF silver approximating the monthly
product of our mines. Under the ope-
rations of this law, silver has advanced
| from 90 cents per ounce on the first of
January, 1890, to S1.2l on August
| 10th, 1890. That it has again retro
graded in price is owing in part to the
fact that, because of the liberal policy
exercised by the treasury in the pur-
chase of silver, both as to quantity
purchased and price paid, large
amounts of foreign silver were at
tracted to this market. Other causes
also operated to produce this result,
prominent among which is the large
falling off in shipments of silver to
India and China. Shipments OF silver
from London to India during the first
nine months of the present calendar
year show a reduction of over SAT-
| 100000 as compared with the same
period of the prior year, while ship
ments OF silver to China show even a
greater decrease. 1t is claimed by
those conversant with the product and
movement, that when the visible stock
upon our market is disposed of the
i ,,AatLlx, ohaDr~tfna of A S00 00O
ounces of silver by this government
will have tendency to effectually and
permanently steady the price OF that
| metal.
If the demonstration of silver as full
legal tender money is ever to be ac-
complished it can only be done by the
action of nations of sufficient CONNER
cial Importance to obtain some fixed
rate in the coinage between the two
! METALS Tho now silvcr oct ia ina-
| portant step in that direction First,
because the compulsory coinage and
issue of silver dollars of less intrinsic
value than their nominal value is re-
pealed; second, because it providesfo for
much larger absorption of silver by
this country than heretofore for cur
rency purposes; and, third, because
the new law declares that it is the es-
tablished policy of the United States
to maintain the two metals at par
with each other. 1t seems to be that
the act under consideration is de-
cided Improvement upon the provi-
sions of the act of 1873, which it re.
peals, in that it has furnished a sound
currency to meet the growing wants o1
our country and has a tendency to re
duce the difference in value between
l.l- lzIw~
store an equivalent so much desired