Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-14
THE WHITE METAL.
Secretary Fosters Letter Read Before the
Bankers Convention at
New Orleans.
WASHINGTON. D. c, Nov. 8, 1891.

WASHINGTON, d. c., Nov. 6, 1891.
DGENTIEMES-In response to the request
contained in your communication of the 18th
ult, that | prepare Il letter upon the opera
ton of the act of July II, 1890, to be read
before the annual convention of bankers |
have the honor to submit the following:
The essential provisions of the law of
July Il. 1890, are these:
l. Monthly purchase by the government
of 1900, 600 ounces OF silver at the market
price.
,. Payment to be made in new form of
paper money denominated treasury notes.
3. These notes to be full legal tender for
all debts, public and private, and to be held
by any national bank association as part of
its lawful reserve.
+ 1t is declared to be the policy of the
United States to maintain the two metals
on parity with each other at the present
legal ratio, or such ratio as may be provided
by law.
>. Two million ounces of silver shall be
coined monthly into silver dollars until July
|. 1891.
6. After July l, 1891, the compulsory coin
age of silver dollars ceases; only such dol
lars need be coined as are necessary for the
redemption of treasury notes.
:. The provision of the act of February
IS, 1878, requiring the monthly purchase
and coinage into silver dollars of not less
than S2,0O0,000 nor more than 100000
worth OF OullOn, is repealed.
5. The moneys on deposit with the treas
ury for the redemption Of national bank
notes are covered into the treasury, and re-
tired bank notes are to be redeemed from
current cash. The amount of silver bullion
purchased with treasury notes under the
provisions of the new law, from August 13,
1890 to November l, 1891, has aggregated
81, 5>S.5 36 fine ounces. costing SIS, 626, SIS.
an average cost of 81. Oh per fine ounce.
From this 81, SIS, 40 dollars have been
coined and the remainder has been stored
in the shape of fine bars in the vaults of
the minis as reserve against the treasury
notes outstanding.
While the new silver law provides for the
purchase of nearly two and half times the
amount of silver required by the act of
1873, the compulsory coinage and issue of
2,0O0000 silver dollars monthly and of
silver certificates Representing such dol
lars) is done away with. In lieu of such
dollars United States notes of full debt
paving power, redeemable in gold or silver
coin ut the option of the secretary of the
treasury, and having behind them practi-
cally gold dollars worth of silver bullion.
have been substituted.
The new law provides for an annual in
crease of our currency, approximating $50
000000 or deducting the average retire
ment of national bank notes in recent
years. an annual addition to our circulating
medium of 81, 100000.
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 single excep-
ton of France, am of the opinion that ow-
ing tc our rapid growth in population and
wealth and the extraordinary development
in all kinds of business, yearly increase
o uIur circulating medium, somewhat pro-