New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-19
THE NEV CERTIFICATES.

The attempt to break the credit OF inc uo'-
ernment for some partisan end was always us
creditable, AMI as critics have been mace con-
scious of this by public censure their dlrec0 anu
open assaults have substantially ceased buC
some Democratic journals have reSorteu lhStoao
to less manly policy of undermining puohc
confidence 1t must be reckoned as parC VI
such a policy that "The New-York lines
finds fault with the issue of certificates against
the new Treasury note, which it represents aS
"a new currency with nothing but SILVER Dc
hind it," as if the certificates mysterlously IN
creased the danger that large amounts Oh the
notes might at any time be presented lor ~.
demption. 1t also suggests that the issue VI
such certificates is "of very doubtful legality
The question of legality scarcely deserves serl-
Gus attention. The Act of 1872 provided that
any National banking association might deposit
"JJnited States notes." and receive therefor
certificates "in such form as the secretary may
n,eScribe.u The Act of 1890 authorized an
issue of Treasury notes OF the United states
upon the purchase of silver bullion, and gave
them the same legal-tender quality ana tne
same power of being part of the National BANK
reserves as were possessed by the United states
notes of early issues 1t would be rather
faint bubble to pretend that the Treasury note
of the United States is not United states ho'e'
or that power given in 1872 to the banks TO
obtain and hold certificates for the unlted
States notes then outstanding did not eXtenu
to any United States notes subsequently issued
"The Financial Chronicle" a journal which
does not often lend itself to partisan uses, IN an
article which 1.-The New Ork Times praises
rs very clear analysis" falls into blunder
50 fragrant that one can hardly avoid suspicion
that It's article was not prepared by any tfalneu
financial writer of that paper, but provided for
it by some politician. 1t says that the new
notes are in the act there named silver bullion
Treasury notes." and argues that this tltle
makes them differ essentially from the United
States notes. Perhaps it might, but the acO
gives them no such title. The absurd careless
ness of the error is apparent upon quotation OF
the language of the act "and shall issue for
such purchases of silver bullion Treasury notes
of the United States to be prepared by the
Secretary" etc. 1t was strange careleSsneSS
for "The Financial Chronicle" if the words
silver bullion were not seen to be part of the
phrase purchase of silver bullion" -Four
times the act in subsequent clauses refers to
the notes by name as Treasury notes" always,
and never once as "silyer bullion Treasury
notes.
1.-The New-Yorlo Times" can hardly be sup
posed to blunder ignoranty when 1t asserts
that the new notes have nothing but silver be-
hind them. For in the same article it refers
to the latter clause of Section 2 of the act
which provides that the Secretary - shall re-
deem such notes in gold or silver coin, at his
discretion, it being the established policy OF the
| United States to maintain the two metals on
| a parity with each other" The original bill
| did indeed provide that the notes might be
redeemed in silver bullion but this was stricken
out after much dispute, and the clause quoted
is that which defines the redeemability OF the
| new Treasury notes. 1t is obviously untrue &c
say that they have nothing but silver behind
them; the entire reserve of gold and silver IL
the Treasury is behind them.
1t is foolishness to say that the issue OF GER
| tifCates against such Of the notes as may be
held in bank reserves adds in the least degree
to the danger of the Treasury. If there is nc
difference whatever between these notes and
the old United States notes. in the actual mode
of redemption whenever either is presented, as
| there is none, the issue OF certificates agalnS
| both indiscriminately has no other tendency Oh
influence than to insure recognition of the new
Treasury notes as on the same footing of merit
and value with the old legal-tender notes. Thai
is a purpose which practical business men anC
sensible voters will approve.
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