The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1892-02-10
QUESTION OF FREE COINAGE.
Director Lsech OF the Philadelphia Mint
Talks silver.

Inc mouse committee on coinage,
weights and measures today examined
Director Leech of the mint bureau
on matters relating to the silver
question. Mr.. Stone of Pennsyl-
vania began the examination. In
answer to Mr.. Stone Director Leech said
his minimum estimate of the production
of silver in the United States the last year
was 100000 ounces-the official esti-
mates would probably exceed that
amount
Mr.. Stone OF Pennsylvania-"If we de-
duct the amount used in the arts and
sciences. the American product would be
less than the government purchases"
Mr.. Leech replied in the affirmative.
The amount of currency in circulation in
the United States, he said, was S24l0 per
capita. This was larger than in any coun-
try except France.
Mr.. Stone-"Is there, in your judgment.
any lack Of a circulating medium in this
country?
Mr. Leech-''No sir; the New York
banks hold $50, 000,0o0 of idle money over
and above their reserves"
Mr.. Leech. having answered in the neg
alive a question OF Mr.. Stone as to whether
any European paper money was based on
silver, Mr. Bland inquired if he held that
there was no country in Europe where
paper money was based on silver. Mr..
1eech's response was that there was no
country in Europe where the paper money
was redeemable solely in silver. Mr..
Bland read from Secretary WINDOWS re-
ports, stating the bank of France had
issued many millions of notes based on
gold and silver deposits, and also where
other countries had out similar notes.
Mr.. Leech insisted that his answer had
been with reference to silver notes alone.
Mr.. Williams of Illinois called attention
to the fact that Mr. Leech had said there
was no country except the United States
whose notes we're based on silver. and
asked if the European countries and the
United States were not on the same basis
in this respect. Mr.. Leech admitted that
this was so and that here, as in Europe,
the notes were based on both gold and
silver. Air. Williams asked ii he regarded
the Issuance OF silver certificates TO cIrcu-
late instead of the silver dollars as any OBJ
stacle to free coinage. Mr.. Leech replied
in the negative, and said he thought the
notes preferable The issuance of gold
notes was open 10 the same objection, but
not to the same extent as in the case OF
the silver notes, as they could be circu-
lated easier. Mr.. Williams inquired why
Mr.. Leech thought silver coins OF other
countries would be dumped here if we
adopted free coinage.
Mr.. Leech-"I think European silver
would come here in ship loads just as fast
as it could be brought in. / think the
Bank of France would send large part OF
~ N mo Il
would do the same"
Mr.. Williams wanted to know how sill
yer coin could be dumped here when they
were in need abroad tor circulation in the
countries having it.
Mr.. Leech-"There is more OF il in do
nestle circulation than is needed. The
people reject it and it naturally gravitates
into the vaults of banks, where it is used
tor the issue of notes. Besides this is not
a question OF any slight loss. 1t is ques-
ton OF standard OF sound currency. All
Europe is practically on a gold standard,
partly from choice and partly from neces-
sitv. The countries of Europe are inclined
to adapt themselves to the old standard,
and l do not believe any loss of a small
per cent. would stand in the way OF their
doing that. Besides they believe it would
be a temporary measure; that we could
not sustain free coinage OF silver, and that
it would be TO their interest to take adj
vantage Of it while we were making the
experiment. That, in my judgment, is the
belief of European financiers."
To Mr.. Bland, Mr.. Leech said that he
believed the silver would come here as
long as we exchanged gold for it. The
shipments would cease when We got on a
silver basis. We would be compelled to
pay the shippers gold because they could
get legal tender notes, which were prac-
tically interconvertiDle with gold.
Mr.. Bland suggested that the PROPOSE
ton of Mr.. LeeCh was that the people OF
Europe would take the silver from home,
where it would buy as much as gold, adj
hitting that it was not worth as much for
foreign transactions, and sell it here,
where they could not buy as much for it
as at home.
Mr.. Leech insisted that would be the
case because of desire of Europe to get
on gold basis, and said Austria was con-
templating that very thing.
Mr. Bland said that so was Germany
contemplating it, but she stopped soon.
A query by Mr.. johnson as TO whether
or not the United States had any agent
abroad with view of learning the senti-
ment toward bi-metallism and an inter
llIllOllhl dEiCCHitls lI1 lilC hlcIhcoAOA AAbO
the field of international agreement. Mr..
Leech's reply to the question propounded
bv Mr.. Johnson was that we had requested
certain gentlemen who were going TO
travel IN Europe and who had a social and
financial standing, enabling them to talk
with public officers and tnanciers, 10 learn
the probabilities of some international
agreement being secured. Those gentle
men had nothing but general letter
from the treasury department. They re-
ceived no compensation. Several letters
had been received from them and laid be-
fore the president within the past few
months. England had shown a DISPOSE.
ton to act fsvorably. He Mr. Leech)
would regard an international agreement
as very great benefit to all mankind.
Mr.. Bland said that it was his expert
ence that for twenty years, every time 9
| free coinage was talked Of they had been
told TO wait for an international agree.
ment, but none had ever come. Mr.. f.
ID. Stark of Cleveland, o., then presented
an argument in favor of free coinage.