Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-12-14
NOT IN THE LAW.

The Presidents Message presents the
status of the silver certificates in a some
what different way from that which Secre-
! t3ry Fosters speeches have done. The
Message argues ''that for every dollar OF
these notes issued full dollars worth of
silver bullion is at the time deposited IN
the Treasure as security for its redemp-
! tion." The statement that the silver
! bullion is regarded as security for the re-
demption of certificates or notes conveys
decided impression that the bullion is to
be used for the redemption of the notes.
But different view from that has been
presented by the Secretary of the Treas
ury He has stated that the certificates
are to be redeemed in gold,. and has even
gone so far as to point out the means by
which it is to be secured for that purpose
in the power OF the Secretary to sell
bonds. On that statement the certificates
are not silver certificates, but promises of
the Treasury TO pay gold; and the immense
stock of silver in the Treasury is reduced
to the position of a commodity for which
the Government has no use whatever. 1t is
true in fact that the new silver certificates,
like the old ones, are sustained at par be-
cause the Government makes them ex-
chaneeable for gold. But the manner in
which the Secretary has dwelt on this
feature only increases the anomaly OF
issuing certificates professedly on the basis
of silver deposits, but with the avowal that
the silver is not to be used in redeeming
them.
The President takes the other horn Of
the dilemma by intimating that dollars
worth of silver-meaning good dollars
worth-is to be used for the redemption.
If this wers unquestionably the case, it
would come very near the proper solution
of the silver problem. But, even on the
high authority of the Presidents Message,
the statement can hardly be accepted.
Suppose that large amount of these GER
tificates were presented for redemption
and the TreasurJ had not the gold to pay
them. What warrant would he have in
law fo- redeeming dollar note with any
greater amount of silver than that which
the statutes already prescrib, as making
dollar? And, if there were such a war
rant, what an anomaly it would be for a
government to first say that so much silver
shall make silver dollar, ard then to pay
out ten, fifteen or twenty per cent more
silver to redeem IFS promise to pay silver
dollar!
The question is further complicated on
the supposition that such warrant exists
in the law of 1890, by the absence of any
rule governing the redemption of silver
bullio1. If man deposits thousand
ounces of silver wher it is worth CSC, gets
certificates for $3.50, and brings the certif-
Gates back for redemption when silver is
worth soc, how much silver will he get?
Will he get back as much as the certificate
calls fer at its new market value, or as
much as he deposited?' On the one hand,
will the holders of these certificates run
the chances of the varying value of the
bullion, or will the Government take that
risk on the other?
The fact is that the law does not pro-
vide for the redemption suggested, and
leaves these questions entirely unan-
swered Ii Congress had summoned up
courage to settle the question on that line,
it would have perceived that there is no
stopping place short of issuing new
silver dollar containing as much bullion as
is equal in value to gold dollar.