New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-05
A PLEA FOR FREE COINAGE.
MR. ST. JOHNS VIEWS ON FINANCIAL LEGIS-
LATION BEFORE THE SENATE.
AN APPEAL TO THE FINANCE CoMMITTEE-FAcTs
AND FIGURES SUBMITTED. WITH RE-
PLIES TO OBJECTIONS.

PLIES TO OBJECTIONS.
The following letter on financial legislation has been
sent to the Committee Finance Of the United States
senate by william p st. John, president of the
Mercantile National Bank. of this city
In evident recognition of the widespread popular
demand for liberal financial legislation. your com
mittee is laid to have entertained several differing
propositions and reported n measure intended 10 in
the volume OF money by means Of Issue Of
United states bonds. payable after ten years, and
bearing interest at the rate Of . per cent per an
mum, upon the expressed expectation that the
National banks will purchase and ny pohecate these
bonds for profitable note-issuc.
Il submit that a large element in the
muuty, who possess Government bonds as something
available TO borrow TO taxation, have been
holding IL per cent bonds in the face of a market
premium at which the net annual income realized is
less than IL per cent per annum. On this basis
n tcn-ycar per cent bond wOkld command a market
premium of from to per cent while the National
banks could not afford to purchase them for profitable
note issue at exceeding par. But if the bonds were
furnished TO the bank directly and at par the likely
mari,et premium subsequently obtainable would in
ducc sales Of them. and by just much effect new
contraction of the currency.
a second proposition which your committee is said
to have reported favOraby would require the Treasury
to purchase Wall Streets stock of silver, accumllla
ton occaSi0ncd by speculation TO silver legislation
and which, if purchased, proposed, will only TEN
porarily disturb the Indian exchanges and thereby
tend to create accumulation subsequently.
The aggressive efforts in the Senate are those di-
rccted at every opportunity toward the adoption OF
equally free coinage for gold and silver An impress
sion here is that measure involving such
free coinage its basal proposition Will shortly be
passed to the President for his veto or approval.
Another imprc--io ion disturbing many Is that anxiety
rs to what may be enacted IS to be continuous until
l. adj ar session ends
March.
Firmly convinced my self that the adoption Of such
freecoinagc would be entirely safe and cmnently wise
that existing trade conditions make the present u
peculiarly propltiOus moment for that adopuon'
that the resulting scare predicted by our 1oIe
clcn bankers may be directed to the material
enhancement Of orr own prosperity, | unhesl-
tatingly commend that adoption now Immediately
Nevertheless, W1-vius ~,e-e convictions beg 10
direct your special attention to proposition OF com
promise which is already informally before the senate
and those amendments proposed by senator Plumb
December .. to senate Bill No. 3-42, and of which
the title may be fully parapir1'cd as follows " y
bill 10 grant the demand Of the hercest advocate 0i
free, coinage for silver while AZ the same time as,ir
ms the gold monomctall-t VITA all the wealth. prde
Of character aud Affirmative Of the United states
that all the money pat into circulation thereby shall
De practically gold paper
81 viii not. uuiuyltcd. detail the merits Of this
PROPOSITION If enacted it viii appear in association
with , section of the Act - July II. 1880. that the
gold mono.mctlll,t I, ther5Dy made conten;edly ST.
cure. while free coinage Of silver is put upon it'
actual trial by the people. But inasmuch as free
.oipol, If silver j. al the base OF this proposal,
submit some facts, follows, in rentatlon OF pro-
claimed objection. 10 free conas.:
81. IL IS objected that foreign silver would noou
our reopcacd minis.
reply that British midas miuts for years pat
have been. still are. and will continue 70 be open TO
her unlimited legal tender silver AT coinage valuation
per cent higher than rcopened mluts would value
silver Tluc.oic when once the level OF the Indian
cN,hang. .haU be established upon miIt price A.
our adoption Of free coinage will establish it, thereafter
all foreign silver which has heretofore sought the In
dian m.ut- viii naturally and for profit continue 10
SEEK them in preference to our own.
For fact, in proof. | submit the following as to
India For tn fiscal year ending l777 her net imports
of silver Sj5.O00,OOC, and the average price OF
silver - - per ounce; fiscal year ending io1-, I'M
ports. $1,000 900: afelagc price. II 20 per ounce
h.caI year ending -- il ports $50 100000; aver
acc price ~ II fiscal year ending l--6, net imports
1000: average price, ~ Oh per ounce calendar
year l--0, net Import, in India about S7OOOO.OOO
average price, about - cents per ounce. Her level o
exchange, j, not dependent upon high or low prices
Of ,lve~ but upon trade conditions and the Steadne's
IF il, price.
mcuts might oycrWhclm reopened minis with their
silver money I'm reply Jet state that continental
Europe j, annually indebted 10 India exceeding in
-ro,, the sum Of @7j.0oO,OOO that the Germans are
excellent a, merchants As are the French a. imam
,cr, and thar BOTH like the American. may he relied
upul to choose when parting with their money TO
part with IL i5g profit rather than IN certainty Of loss
rI.. IT,. with the German Government ana the
rrca,h Government alike neelcctug annually TO trade
oit their supposed surplus silver through the agency
of tc!r merchant, and their iuaucier, IN settlement ol
40 great mdcbteduc-, 10 India annually, but electinS
instead - permit their merchants and hnanceTS II
..f'la Tins great trade balance annually with Council
bulls bought loo London aud pah Tor IN goa OF ia,
cluIl.tlaut they cannot BE- assumed by intelligent
,t,,,, o., l, p1.,r.,cd Of any ,urull, silver with
.,.I.li Z, flood DIR wiuf,. Nv-'ctUg thus To- snip
any ,..i", nv. -, tti.,Ient of debt they Vii
f rno,r instead 4, rccOh into silver dollar, AT
a Iii, I'm the exchange The difference being peg ccni
','.,,cl tl..,. operations. and when the trade IN
Directly in connection with this, submit lct
rrcuct q, lttu,l l.upi whom oui American I'ic'-
pred ctcI as the result II our then pchilhE rs!''lo
.ii>-r he tIcn stated that UcrInnY hnl vast sum,
II idle silver awaiting market. ana lhdt li' b"nN
Of France held large amount o b'isll silver MONEY
poAeI for shipment !" dehii"u "i -''Gi t,,,i
be. revised th',' INST conclusions me f''l1'n,''
London IN August of that year. NaN'; Inc Subject
with which Mr.. laupi d'diN y one on "Ilol NV ,
claim 4 speak with ,om" authority, Tor th'N are lew
who have given more attention tidn hr 10 WoI.tu>
,t..ti ,td n, ucirN .aiIIir,.' The pUrplrt of the
letter of Mr. laupt 'lS referred Ia II To argue WIN
tti.t,- tiat the United states cannot annually OBTAIN
H. nr,rut Treasury requirement ~ silver ana There
FORE that ~ for 81 -rau> ot silver, or -" Pc r
ounce fine. H. To- rlr tl" minimum mirAc' pre- 81
silver in the immcdat" future. lie N'aur ;''lti''
win Germany sell more tholcrS, nor ltiN hei d"
moucu1cd Hourbouin paotres nay, even nttie k1u
r,,ui, looks already mOunfullN on the @1,OooooD
frame, of i've lei piece, disposed Of 20 group OF Wen
nc,r hLuhcr-.' .u .
l!ut If mo- food Of foreign silver i a'tlalN To
fritru H.. our foreign bankers next excite thelr own
and o,r domestic bankers fears with ,iNpei'u over
,,hclmng return from Europe OF their investments ii
orr prime securities. NJ DAMN,
~ti,utlcincn. the embarrassment of McsSIs. BarlnS
prhor. VA, iutimatcd to the inside few some weeks
rfr, our public had suspected such TossiOlty' anu
r American foreign bankers ana their EuropedL cor
~, lndcnt, were not slow to hurl upon our market
their only things available aS cash IN the iorcsc'h
emergency The danger OF any aiditona! return Oh
,r Securities from Europe can estimate, Dut Nol
- - - h., r,.1nndri TINT il |, duo u orr amply