Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1891-12-19

from the United States amounted TO q, $780,
b55. The production of the United States
increased from 10000, 600 ounces in 1889,
TO $4,000, 600 In 1890. The government is
now buying and putting aside annually
4,500, 90 ounces, which, allowing z, ,140, 600
ounces of new bullion used in the arts, Is
6.640,000 more than our domestic product
available for coinage. hope the dcpres-
sion in the price of silver Is temporary
and that a further trial of this legislation
will more favorably affect It, That the
increased volume of currency thus sup
piled for the use of the people was needed,
and that the beneficial results upon trade
and prices have followed this legislation,
! think must be very clear to every
one. nor should it be forgotten that
for every dollar of these notes issued
n full dollars worth of silver bullion Is at
the time deposited in the treasury as Sc
curity for its redemption
Upon this subject, as upon the tariff my
recommendation is that the existing laws
be given n full trial and that our business
interests be spared the distressing inAu-
euce which threats of radical changes al
ways imparts.
Under existing legislation IL Is In the
power of the treasury department to main
tain that essential condition of national
finance as well as of commercial prosper
ity-thc parity in the use of the coin dol
lars and their paper representatives. The
assurances that these powers would be
freely and unhesitatingly used has done
much to produce and sustain the present
favorable business conditions.
Opposes Free Coinage of silver.
am still of the opinion that the free
coinage of silver under existing conditions
would disastrously affect our business in
terests at home and abroad. We could
not hope TO maintain an equality In the
purchasing power of the gold and silver
dollar in our own markets, and In foreign
trade the stamp gives no added value to
the bullion contained in coins. The pro-
aucers of the country and its farmers
and laborers, have the high
est interest that every dollar, paper
or coin, issued by the government, shall
be as good as any other. The money
lender will protect himself by stipulating
for payment in gold, but the laborer has
never been able TO do that.
To place business upon a silver basis
would mean sudden and severe con-
traction of the currency, by the with
drnwal of gold anC gold notes, and such
an unsettling of ali values as would pro-
duce n commercial panic. i can not
believe that people so strong and so pros
porous as ours will promote such a policy.
The producers of silver are entitled to
just consideration, but they should not
and putting out of the market what is the
equivalent of the entire product of our
silver mines. This is moro than they
themselves thought of asking two years
ago. believe it Is the earnest desire of
great majority of the people, as it is
mine, that full coin use shall be made
of silver just as soon as the cooperation
of other nations can be secured and
ratio fixed that will give circulation
equally to gold and silver. The business
of the world demands the use of both
metals, but / do not see any prospect of
gain, but much of loss, by giving up the
present system, in which a full use is made
of gold, and large use Of silver, for one
In which silver alone will circulate Such
an event would be at once fatal to the fur
ther progress of the silver movement. BIZ
metalism is the desired end, and the true
friends of silver will be careful TO not
overrun the goal and bring in silver mono
metalism, with its necessary evil attend
ants.
have endeavored by the use Of official
and unofficial agencies to keep close OBJ
servation Of the state of public sentiment
in Europe upon this question, and have
not found IL to be such as to justify me in
proposing an international conference.
There Is, however, | am sure, a growing
sentiment in Europe in favor of the larger
use of silver, and know of no more effect
ual way of promoting this sentiment than
by accumulating gold here. scarcity of
gold in the European reserves will be the
n ost persuasive argument for the use of
silver The exports of gold to Europe
which began In February last
and continued until the close of
July, aggregated over S70,000000 The
net loss of gold during the fiscal year was
nearly S6s, 100000. That no serious none
tary disturbance resulted was most graft
flying, and gave to Europe fresh evidence
of the strength and stability of our fnan-
cial institutions. With the movement of
crops the outflow of gold was speedily
stopped, and return set in. Up to Dec
ember ! we had received of our gold loss at
the port of New York, s27, S54, ,0OO and it is
confidently believed that during the win
ter and spring this aggregate will be stead
lily and largely increased.
The Cash Surplus.
The presence of large cash surplus in
the treasury has for many years been the
subject of much unfavorable criticism and
has furnished an argument to those who
have desired to place the tariff upon
purely revenue basis. 1t was agreed by
all that the withdrawal from circulation of
so large an amount of money was an EN-
barrassment to the business of the coun-
try and made necessary the intervention
of the department at frequent intervals to
relieve threatened monetary panics. The
surplus on March /, 1890, was $lS3 S27,-
1929 The policy of applying this sur
plus to the redemption of the interest bear
ing securities of the United States was
thought TO be preferable to that OF deposit
ing it without interest In selected national
banks. There have been redeemed since
the date last mentioned, of interest bear
ing securities, S259, $3.50, resulting in u
reduction of the annual interest charge Of
Sll,6S3,675 The money which had been
deposited in banks without interest is
being gradually withdrawn and used in
the redemption of bonds. The result Of
this policy, of the silver legislation, and of
the refunding of the ~ per cent bonds
has been large increase of the money In
circulation, At tho date last named the
circulation was sl ,404, 205, 500; or s23. .03 per
capita, while on the 1st OF December, 1891.
II had increased to 8, ,577 ,262,0 ,070, or s243 3S
per capita. The offer of the secretary of
the treasury TO the holders of the AZ per
cent. bonds to extend the time of redemp-
ton at an interest of per cent, was ac-
cepted by the holders Of about one-half
the amount, and the unextended bonds