The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-09-07

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be directed to purchase, IN unlimited
quantity, all silver bullion the product Oh
| American mines offered him for sale at
current market price.
D. That he issue in payment thereof
silver bullion certificates (Which Tor
brevity's sake will hereafter simply call
''certificates'0 of customary form and
denomination, the certificates calling Tor
the delivery on demand tgold) dollar 5
worth of silver bullion at the market
| price on the day of demand.
3. That the secretary shall perlodlcaliy
ascertain the gold value OF the silver
bullion held by the government to secure
the certificates, and if the value OF said
silver bullion shall be found to be less
by one or more per cent. than the face
value of the certificates then outstand-
ing he shall then. before stated brief
time, cancel and destroy SO many OF the
certificates as may then be held In the
| treasury, or if not then held, then next
paid into it, as shall be necessary to re-
| duce the sum of the certificates out
standing to the gold value of the silver
bullion so held by the government.
| T. That il the secretary shall IND the
| gold value of the silver bullion held by
| government TO be at all in excess OF the
! face value of the outstanding certlfi-
catos, he shall then, before the same
| stated brief time, issue so many addI-
| tional certificates as shall be necessary
| to increase the sum Of the certificates TO
the gold value of the silver bullion so
held by the government.
| s. That such certificates shall be
legal tender for all debts, public and prI-
| vate, except when otherwise expressly
| stipulated, and shall be received for Gus
toms taxes and all public dues, and
when so received may be reissued except
| when such issue would conflict with d.
HOW 1T WOULD WORK.
By way of Illustrating the practical
workings of this plan, let us assume that
the government holds S2e0, 900, 00o worth
of silver bullion against which there are
outstanding $500, 100000 of certificates;
If now the price Of silver falls, sey per
cent, so that the silver bullion is worth
but sos, 900, 900, then is shall be the duty
of the secretary Of the treasury to cancel
! and destroy SO, 1000, 900 of certificates he
may have in the general treasury .charg-
ing off to profit and loss 1000. 600 and
thus reduce the certificates to 1913, 000,
600, being the value of the silver bullion
at the lower price of silver. On the 9th
CT hand, if the price of silver advances
so that $500, 100000 of silver bullion be-
comes worth $20l, 900, 900, then it shall
be the duty of the secretary to issue ST.,
600. 600, certificates, crediting profit
and loss with 81 900. 900, thus increasing
the sum of the outstanding certificates
to 1901 ,000, 900, being the value of the
silver bullion at the advanced price of
silver.
Let me now point out few of the adj
vantages of such law.
1. We would have, practically, the
free coinage of silver, for the secretary
would have to purchase all bullion the
product of American mines at the mar
ket price. Gold is commodity, and has
its value as commodity. Silver is a
commodity, and has its value for the
same reason. No power under heaven
can keep ratio between two commodi
ties equal. If the ratio is right today it
will be wrong tomorrow. The plan
suggested keeps the value of our silver
and gold dollars the same under the ever
shifting ratio of the two metals. 1t keeps
the silver dollar always full.
2. There would be no seigniorage
charge to the seller of the bullion, and
the government would avoid the cost of
coinage.
8. There would be no loss from attri-
ton in shipping, or in carrying in the
pockets of the people, and the banks
would save vast sums formerly paid for
expressing the heavy coin from one
place to another.
f. The certificates would always be
worth their face value in gold; for the
periodical corrections by the secretary
would insure, beyond a question or a
doubt, that every dollar of this govern
ment would be intrinsically worth every
other dollar. In no other plan hereto
fore devised has this been possible.
5. Though we would be on a gold
basis, we would yet be using large
amount of silver, and that, too, without
quarrel as to the ratio, and without
any international agreement.
6. There would be fiexibility about
such measure that would be highly
desirable. If more money were needed
bullion would be brought to the treas
ury. IL less money were needed. and
silver were demanded in the arts, silver
could be obtained by presenting the GER
tificates at the market price.
OBJECTION MET.
The objection will be raised that this
plan will necessitate that the govern
ment stand loss when silver falls.
This is a valid objection, for undoubted-
ly the government would lose on its
stock of silver if the price fell. But the
government would charge Off the loss,
periodically in small amounts, causing
no disturbance to apy interests. If on
the other hand there were rise in the
price Of silver the government would
make a profit, collecting it as fast as
made. But if silver is to continue 10
fall, is it not far better that the gov
eminent stand the loss in this
way, little at a time, and no
damage be done, and keeping the
standard true and above suspicion, rather
than the accumulated depreciation of
years come to total loss at once, and
directly on the people-entailing the ruin
of thousands Of men, destroying the
nations credit and striking blow that
would paralize business for years.
Although l might defend my position
by argument, i refrain. for your valua-
bic space forbids. | would ike, how
ever, to see the plan discussed, for l be-
lieve it adequate, and would hope that
discussion would result in a bull being
framed which would preserve the credit
and the money of this great nation and
yet satisfy the people.
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