Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-11-12

try's Finances-A Declaration That the
Notes Issued Under the Law Are Prac-
ticaIly Backed by a Gold Dollars
Worth of Silver-An Annual Increase
eff Currency in the Country Imperative
ly Necessary-Comments on Free Coin
age.
NEW ORLEANS, Nov. 12.-There was a
large gathering of men who handle
money at the meeting of the American
Bankers association here yesterday,
about 800 delegates being in attendance.
and a number of interested VISITORS A
welcome to the city was extended the del
egates in brief patriotic speech by Sena-
tor Gibson. The presidents annual adj
dress. the report of the executive COM
mittee and other reports were read, in
Guiding that of the secretary, which
showed that the association lost 141 men,
bers during the year and gained seventy
four. The whole number of mem bers is
1888 AS soon as the preliminary bust
ness had been transacted letter from
Secretary Foster was read. giving his in
depreciation of the act of July a. 1890,
a1d some notes upon its operation.
The letter is dated at Washington, Nov.
9, 1891, and in full is as follows:
GENTLEMEN: In response to the request
contained in your communication of the 18th
ult. that pr. pare a letter upon the operation
of the act of July H. 1890, TO be read before the
annual convention of bankers, l have the
honor to submit the following:
The essential provisions of the law Of July "a,
1890, are these:
l. Monthly purchase by the government of
100000 ounces of silver at the market price.
2. Payment to be made in a new form of pa
per money denominated treasury notes.
8. The 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.
4. 1t is declared to be the policy of the United
States to maintain the two metals on a parity
with each other at the present legal ratio or
such ratio as may be provided by law.
8 Two million ounces of silver shall be coined
monthly into silver dollars until July l. 1891.
9. After July l, 1891, the compulsory coinage
of silver dollars ceases; only such dollars need
be coined as are necessary for the redemption
of treasury notes.
.. The provision of the act OF Feb. %, 1873,
requiring the monthly purchase and coinage
into silver dollars of not less than S2,UOGO0
nor more than 81 10000 worth of bullion is re-
pealed.
s. The moneys on deposit with the treasury
for the redemption of national bank notes ara
covered into the treasury and retired hank
notes are to be redeemed from current cash.
Purchase of silver Under the Law.
The amount of silver bullion purchased with
treasury notes under the provisions of the new
law from Aug. Is, 1880, to Nov. i, 1891, has ag-
gregated CO .5SS ,iB fine ounces, costing sos 66,
5S5, an average cost of Sl.O9 per fine ounce.
From this silver 81, 81, AS have been coined,
and the remainder is stored in the shape of fine
bars in the vaults of the minis as a reserve
against the treasury notes outstanding. While
the new silver law provides for the purchase of
nearly two and one-half times the amount of
silver required by the act of ISIS, the compul-
sorry coinage and issue of 100000 silver dollars
monthly land of silver certificates representing
such dollars is done away with, as, in lieu Of
such dollars, United States notes of full debt
paying power, redeemable in gold or silver
coin, at the option Of the secretary of the treas
ury, and having behind them practically gold
dollars worth of silver bullion, have been sub
stituted.
Yearly Currency Increase Desirable.
The new law provides for an annual increase
of our currency appruximating S50O00,009, or
deducting the average retirement OF national,
bank notes in recent years, an ANIMAL addi-
ton to our circulating medium OF S24.OU.0t0.
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 cur
history. and more per capita than IN any OF
the leading commercial nations of the world
Win the Single exception o. IHbtt-s / am ol
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 our growth in population is
impeTatlyely demanded.
Secured by the Present Law.
The issue of treasury notes under this act
affords such an increase of perfectly conven
tent and sound currency. based dollar for dol
lar on the cost value of silver bullion, redeem
able on demand in gold coin and with the
pledge of the government to maintain it at
par. That this addition TO our circulation has
proven beneficial was forcibly exhibited dur
ing the spring and summer of ne present year
when, through the necessities of Europe, gold
was withdrawn from this country in large
quantities, aggregating in brief period of
five months over SOLOMON But for the sub
stitute provided for domestic trade in the form
of treasury notes. issued by the government
in the purchase of silver bullion, il is probable
that this country would not have been able 10
stand this enormous drain Of gold without
producing stringency in the money market
and serious business distur bance.
THE PRICE OF SILVER BULLION.
EHact of the l. RECOMMENDATIONS,