Los Angeles herald., 1892-02-04
THE SILVER QUESTION.
Director Leech Examined by the House
Coinage Committee.

Coinage COMMITTED.
WASHINGTON, Feb. 3.-The house COM
mittee on coinage, weights and measures
today examined Director Leech, OF the
mint bureau, on matters relating to the
silver question. In answer to Stone, of
Pennsylvania, Leech said his minimum
estimate of the production of silver in
the United States during the last year
was So, 900, 900 ounces. The official esti-
mates would probably exceed that
amount. If the amount used in the arts
and sciences is deducted the American
product will be less than the government
purchases. The amount of currency
in circulation in the United States, he
said, was $24.50 per capita, larger than
in any country except France. Leech
did not think there was any lack of cir
culating medium in this country.
Leech having answered in the mega
tive question of Stone as to whether
any European paper money was based
on silver, Bland inquired if he held
that there was no country in Europe
where paper money was based on silver.
Leech's answer was that there was no
country in Europe where paper money
was redeemable solely in silver.
Williams of Illinois called attention
to the fact that Leech had said that
there was no country except the United
States whose notes were based on silver,
and asked if the European countries and
the United States were not on the same
basis in this respect Leech admitted
that this was so, and said here as in
Europe, notes were based on both gold
and silver. Williams asked him ii he
regarded the issuance OF silver certifi-
Gates to circulate, instead OF silver dol
lars, as any obstacle to free coinage.
Leech replied in the negative, and said
he thought notes preferable. The issu-
ance of gold notes was open to the same
objection, but not to the same extent
as in the case of silver notes, as they
could be circulated easier.
Williams asked Leech whether he
thought the silver coinage of other coun-
tries would be dumped here if we
adopted free coinage.
Leech-I think European silver would
come here in ship loads, Just as fast as
it could be brought.
Williams wanted to know how silver
coins could be dumped here when they
were needed abroad for circulation in
the countries having them.
Leech-There is much more of it in
domestic circulation than needed. They
reject it, and it naturally gravitates into
the vaults of the banks, where it is used
for the issue OF notes. All Europe is
practically on gold standard, partly
from choice and partly from necessity.
The countries OF Europe are inclined to
adapt themselves to the gold standard,
and do not believe any loss of small
per cent would stand in the way of their
doing that besides they believe it would
be temporary measure; that we could
not sustain free coinage of silver, and
that it would be to their interest to take
advantage of it while we were making
the experiment. That in my judgment
is the belief OF European 6nanciers.
To Bland Leech said that he believed
silver would come here as long as we
exchanged gold for it. Shipments would
cease when we got on silver basis. We
would be compelled to pay shippers
gold, because they could get legal tender
notes, which are practically intercon-
vertible with gold.
Leech said III his judgment, Tree silver
coinage would either send gold abroad
or to premium. Replying to Mr..
Bland, he said he thought we had gold
enough to buy the worlds stock of
silver.
Query by Mr.. Johnson, OF North Da-
kota, as to whether or not the United
States had an agent abroad with a view
to learning the sentiment toward BIZ
metallism and an international agree
ment, led the discussion to the field of
an international agreement.
Leech replied that a certain gentle
man travelling in Europe had been re-
quested to learn the probabilities of
some international agreement be-
ing secured. England had shown
disposition to act favora-
bly,, and encouragement for an
agreement had been received. He
(Leech) would regard an international
agreement as very great benefit to all
people. He admitted that free coinage
bill would benefit England more than If
an agreement was reached.
Mr.. Bland asked if it was not fact
that these agreements and the talk Of
them generally, arose about the time the