The record-union., 1891-11-12
UNCLE SANS MONEY.
SECRETARY FOSTER ON THE OPER-
ATIONS OF FINANCIAL LAWS.
Causes Which LED TO tho Rise and
Fall of Silver BullioTi-Ee-
monetization.
to the REcoRnun1on.

Special TO the RECoRD-UNIoN.
NEW YORK, Nov 11.-Secretary Of the
Treasury Foster, in response to an invi-
tation. has addressed a letter to the
American Bankers Association at New
Orleans on the operation Of financial
legislation in the last Congress. After re-
citing the provisions OF that legislation,
the Secretary says:
''rEhe amount of silver bullion pur-
chased with Treasury notes, under the
provisions Of the new law, from august
Is, 1890, to November l, 1891, has aggre-
sc, ,5SS, ,536 fine ounces, costing SOS, ,G25, $50,
an average OF 81 03 per fire ounce. From
this silver 81, ,GAS, ,475 have been coined,
and the remainder is stored, in the shape
OF fine bars, i'll the vaults OF the mints rs
q reserve against the Treasury notes out
standing.
while it is true the amount Of money
in circulation III this country at the pres
ent time is greater than at any previous
period in our history, and more pcy
capita than in any of the leading COM
mercial nations Of the world, With the
single exception of France, am Of the
opinion that, owing to our rapid growth
in population and wealth and an extra
ordinary development in all kinds Of
business, yearly increase III our circu-
Iatlng medium somewhat prOpOrtionate
to our growth in population is inDcra-
lively demanded. The issue Of Treasury
notes under this Act affords such an in
crease of perfectly convenient and sound
currency. based dollar for dollar upon
the cost value Of silver bullion, redeem
able on demand in gold coin, and with
the pledge of the Government 10 main
tain it at par.
Another object of the Act was to pro-
vide home market tor the silver pro-
ducts of the United States by requiring
the purchase of a quantity OF silver APP
prOXimating the monthly product Of our
mines. Under the operations Of this law
SILVER advanced from 96c per tine ounce
on the lSt OF January, 1890. TO 81 q, Aug
ust 10, 1880. That it has again retrograded
IN price IS owing in part to the fact that
because OF the liberal policy exercised by
the Treasury i'll the purchase of silver,
both as to the quantity purchased and
the price paid, large amounts Of foreign
silver were attracted TO this market.
Other causes which I cannCt enlarge
upon operated to produce this result,
prominent among which is n large falling
off in the shipments of silver to India
and China. The shipments of silver
from London to China during the first
nine months of the present calendar year
show reduction OF over $l7,000,000 as
compared with the same period of the
prior year. While the shipments OF silver
to China show even greater decrease.
''lt is claimed by those conversant with
the product and movement of silver, that
when the visible stock upon our market
is disposed OF, the monthly absorption of
100000 ounces of silver by this Govern
ment will have a tendency to effectually
and permanently steady the price of that
metal. If the RECOMMENDATION Of silver as
full legal-tender money is ever to be ac-
complished, it can only be done by the
action of nations of sufficient commercial
importance to maintain some fixed ratio
in the coinage between the two metals
The new Silver Act is an important step
in that direction-Q) because compulsory
coinage and the issue of silver dollars of
less intrinsic value than their nominal
value is repealed; ~ because it provides
for much larger absorption of silver by
this country than heretofore for currency
purposes, and (3) because the new law de
clares it is an established policy of the
United States TO maintain two metals at q
parity with each other.
1T seems to me the Act under consid-
Grafton Is decided Improvement upon
the provisions of the Act of 1873, which it
renealS, in that it furnished sound cur
Tency to meet the growing wants of our
country. and has a tendency to reduce the
difference in value between the two met
ais and thus help TO restore the equilibri-
um so much desired"