St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-11-01
PEFFER AND THE TRIBUNE.

SuDSldllcS.
The difference between the silver eertif-
Gates issued under the BLAND law of IS and
the treasury notes issued under the present
law is most vital Que. The silver certificate
of rs simply entitled its holder TO call at the
treasury and get ne coined silver dollar
whose marKet value Appropriated - cents.
The credit of the government and the fact
that these certificates were receivable for
customs duties enabled both coined dollars
and certificates to circulate at par. The
treasury note upon the other hand. is re-
deemable either in silver or gold at the dis
cretion of the treasury. The insertion of the
phrase that the gold and silver shall he
maintained upon parity leaves the treas
ury no alternative bur TO pay the new treas
ury notes i'll gold. Thus the new treasury
note is backed By one gold dollar worth of
value.
The GLOBE at once in reply said that
this was not true; that there was 10
provision IN the act of July IA, 1890, re-
curing the maintenance of the cur
rency to be issued hereunder at par
ity with gold; that there was a declara-
ton to the effect that it was the govern
ment'S settled policy to maintain all its
currency on parity, and that this APP
piled as well to coined silver dollars and
silver certificates as to the new treasury
notes. The GLOBE declared that the
basis of all our money in circulation
issued by the treasury, except tine gold
coin, was popular confidence in the gov
ernment's stability; that it was fiat
money, by which is meant money by
legislative decree. and not because Of its
intrinsic worth. and that all of it-treas-
ury notes as well as the rest-was I'M
speakably vicious in its nature, and in
violation of oil principles of sound
finance.
On Oct. % the Tribune returned to
the subject, and, seeking to avoid its
own previous peryersiOn of the law, de-
tended the treasury notes rs against the
coined silver dollars and silver certifi-
Gates by quoting with approval Secre
tary FOSTER, as follows:
''In addition to being redeemable in gold or
silver coin, at the discretion of the secretary
of the treasury. the treasury notes have be-
hind each dollar practically gold dollars
worth of silver bullion''-a statement by the
way which it had already made.
The GLOBE again, ip its issue of FRI
day last, showed that this also was not
| the Tribune'S forgery of the statute,
and proved that the decline in silver as
measured by gold during the fourteen
months the SHERMAN law has been in
| force would be enough in itself to bring
the actual value of the silver in the
! governments vaults which was pur-
chased by the outstanding treasury
notes below the face value Of the notes.
Now how does the Tribune meet this
position? Here is what it says:
Well. what of it? What difference does it
make to the holder of treasury note whether
the government MAKES money or loses money
! buying silver if the obligation is 10 pay IL
dollar in gold or its equivalent: a
! bank takes the risk when it buys bullion.
Why not the treasury:
This brings US back to exactly the
point for which the GLOBE has all along
been contending, and it is grateful to
the Tribune for admitting it. The thing
back of our silver money Of every sort is
not bullion, but the governments prom
Use to redeem. This, in the same way,
is the thing back of the 1916. 900, coo of
paper currency which is INTERPOLATION
And they all belong to the same class
the class of money which depends fol
its value not OH its intrinsic worth Oh
on the intrinsic worth Of commodities
which are behind it, but on faith that
the government which authorized it will
be able to make it good if it is called Oh
to 90 so. When the Tribune asks
"Well, what of it?" the GLOBE can only
call attention to the sublime spectacle
] IF - a ,icf
side by side with the lunatic PETER il
advocacy ola currency printed by the
yard in response to Il popular clamor FOL
''more money"
The government has in its possession
500. 100000 of gold. 1t has outstandi1!
$685. 100000 of greenbacks, S35o0)9.O0,
Of coined silver dollars. or silver certifi
Gates based on them. under the provIS
ions of the BLAND bill. and treasury
notes issued, according to the SHERMAN
law, for the purchase Of 63,0)O,011
ounces of silver at its varying market
value. This silver, from the time the
first of it was bought to the presen
date, has Shrunk in value from SLIP
an ounce to $50 cents an ounce. Til
last purchase was made at little NOR;
than 81 cents, but in month it has de
clined in value cent and half. If i
were sought to realize on it as a com
| modify to-day, the market would bi
broken by the attempt. and there is II;
telling To what point it woult
fall Now suppose there were
run on the treasury tomorrow
and everybody holding a greenback
a silver certificate or a treasury not
should demand its redemption in gold
g How long would the 800, 10000 of gol,
hold out? In order to keep its promise
the government would have to sell il
S bonds. 1t could do this. of course, be
cause it is stable and has high credit
S And these are the things which are "bc
: hind" our currencY-the government
l stability and credit. Ii the Tr ibur
| regards them as proper basis for
nation al currency, well and good, I'll
bearded PETER agrees with it. 1t nee
/ not feel lonesome.