Daily tobacco leaf-chronicle. (Clarksville, Tenn.) 1890-1895, 1891-01-10

A New Workers. Scheme to Rem
der 1t Harmless.
Make Gold and Silver Inter-
ChangabIe on Demand,


ishing, If Not Entirely Removing, the
Threatened Danger from Free Coinage.
George II, Gibson's Plan.
New YORK, Jan 10.--A suggestion
ON the subject of silver legislation,
which is intended to show the way of
avoiding possible evils from congression-
al schemes, has been made by George
Rutledge Gibson, of this city, in the fol-
lowing letter which he has sent to Presi-
dent Knox, of the National Bank of
the Republic, and several other men i'm
terested in the financial problems of the
city;
II have in my mind an idea which
think has not been broached by anyone,
but which think might tend to dimin-
ish, if not remove, any danger arising
from free coinage The treasury now
carries fund of $l00, 600 of gold for
the purpose Of redeeming its treasury
notes. but, owing to the confidence of
the note-holders and legal-tender quality
of the paper, these notes are rarely pre-
sentel for redemption and therefore
this fund lies idle and unproductive. Its
existence, however, is an assurance that
is perhaps indispensable to the perfect
credit of these notes, but it is great
enough sum, considering the trifing de-
mandS made upon 1t, to Justify increas-
ing it's utility,
"The fear of unlimited coinage is, of
course, that it would bring our monetary
basis down practically to sole silver
standard, Notwithstanding the fact that
legally the standard would be Ei-metallic,
b,t L..
traction Of the circulating medium to
the extent Of the existing mass of gold
now in circulation. This expectation,
while not shared in by everybody, is per-
haps a common one and founded on the
belief or theory that gold would rise to a
premium that would practically demon
etize it. Now, my proposition is make
gold and silver coin interchangeable at
any Of the sub-treasulies of the United
States mt the pleasure of the holder.
Thus, if the holder of a $50 gold piece
desires small silver, either silver dollars,
silver certificates or subsidiary silver,
upon presentation at the treasury he
should receive such change; per contra,
if the holder of silver desired to ex-
change it for gold he could do 50 upon
demand at the treasury.
with 500, 900, 600 of gold as q fixed
fund, which, il necessary could be in
creased, don't see how any commercial
demands could be made upon the treas
ury for such conversion that could not
be easily met. Capitalists would not be
disposed to hoard gold as long as they
knew that their silver notes or coin could
at pleasure be converted into gold; spec
ulators would not bid premium fer i+s
use when holders of silver coins or notes
could go to the sub-treasury and ex-
change silver for gold The only real
commercial danger from the existence of
two metals in circulation side by side
would be by that undervaluation one of
them would be driven out of the coun-
try to meet any trade balances due
abroad But since our country is so stu
ated with reference to the commerce of
the world that no fear need be telt or ex-
pressed as to the reversal of the present
international trade current, which now
runs strongly in our favor, there would
be no drain on this country for the un-
dervalued metal,
Il believe that provision for the
mutual and free interchange Of all coins
issued by the government would steady
the relation of the two metals so that
free coinage would be relatively harm
less, if, indeed, not wholly beneficial.
There is no stock of silver bullion ex-
posed for sale in any market in the
world, The immense quantity Of silver
coin in existence has been placed-i g.,
it is either in the hands Of banks as o
reserve against deposit obligations or in
the pockets Of the people and it cannot
be uprooted from its present situs and
turned into the melting pot, except by
gh in fol
by some such country as France, where
bj-mejallism really obtains at present,
and where the demand for small silver
coin is 80 great that it is highly improb-
able that that country would be dis
posed to part with any of its white
metal
The fact that silver advanced to $1.20
an ounce last autumn without bringing
into this country any foreign bullion Is
proof Of the fact that none was for sale.
Ordinarily we have exported about $1S,-
O0O, 900 annually, and there is no reason
to suppose that after the silver buyers of
the far east get accustomed to the un-
important net advance which has taken
place in the price Of silver they will
either be able to obtain their supplies
elsewhere than in this country or do
without them. If the holders of green
backs never want them redeemed in
gold is there any more reason to sup
pose that the holders Of silver dollars
would want gold dollars when they
know that they can get them? With
draw all National bank notes and let
your currency consist Of gold, silver and
treasury notes. all interconvertible.
That viii give us as near a stable
currency as political science can suggest.
We now discfedit our silver notes by
leaving The opinion TO the government
as TO whether they shall be redeemed in
gold or silver As matter Of fact, the
government 50 far has exercised its
opinion only in gold, but to give perfect
equality TO all Federal money issues.
gold coin, silver coin, green
backs or notes issued against purchase
Of silver bullion Let the holder. in
stead Of the government, possess the
option, and when he knows he can get
any kind Of money that he wants he will
I've satisfied with what he has This
would remove the fear that now fingers
in bis mind that some time the govern
ment might exercise the opinion to hurt
him The government ought to make
all money interchangeable and inter-
and legal-tender, and pro-
hibit all other kinds Of currency"