St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-04
SILVER CATECHISM.
BANDS Committee Questions Mr..
Leech.

| WASHINGTON, Feb. 3.-The house
| committee on coinage, weights and
measures today examined Director
| Leech of the mint bureau OIL matters
| relating to the silver question Mr.. Stone,
of Pennsylvania, began the examin-
alton. director Leech said his minimum
| estimate of the production of silver in
| the United States during the last year
was 5S.000.00 ounces, but the official es-
| Inmates would probably exceed that
Mr.. Stone - If we deduct the
amount used in the arts of
| sciences. the American product
would be less than the government pur-
| chaSes. MIR. Leech replied in the af-
| firmative. The amount of currency in
| circulation in the United States, he
said, was S24.50 per capita. This was
| larger than i'll any country except
| France.
Mr.. Stone-Is there, in your judy
ment, any lack of circulating medium
in this country? Mr.. Leech-No, sir.
| The New York banks hold about $780,
100000 of idle money over and above
| their reserves. Mr.. Leech having an
| swered in the negative 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 redeemable solely in silver.
Mr.. Bland read from Secretary Win
dom'S report. stating that the Bank of
France had issued many millions of
notes based on gold and silver deposits,
and also that other countries had out
similar notes. Mr.. Leech insisted that
his answer had been wife reference to
silver notes alone.
Mr.. Williams, of Illinois, called at
tention to the fact that Mr.. Leech had
said there was no country except the
United States whose notes were based
on silver, and asked if the Eropean
countries and the United States were not
on the same basis in this respect. Mr..
Leech admitted that this was so, and
said that here. as in Europe, the notes
were based on both gold and silver. Mr..
Williams asked if he regarded the iSSu-
ance of silver certificates to circulate
instead of the silver dollars as any OBJ
stacle to free coinage. Mr.. Leech re-
piled in the negative, and said he
thought notes preferable. The issuance
of gold notes was open to the same OBJ
lection, but not to the same extent as in
the case of silver notes, as they could
be circulated easier.
Mr.. Williams inquired why Mr. Leech
thought silver coins of other countries
would be dumped here if we adopted
free coinage, and the mint director
said he thought European silver would
come here in shiploads, just as fast as
it could be brought IN. lie thought the
Bank of France would send a large part
of its S25S, 100000 of silver here, and
Belgium would do the same. =
Mr.. Williams wanted to know how
silver coins could be dumped here when
they were needed abroad for circula-
tion in the countries having it. MIR.
Leech-There is much more of 1t in
domestic circulation than is needed.
They reject it and it naturally gravi-
tates into the vaults of banks, where it
is used for the issue of notes.
Besides this is not question of
any slight loss. 1t is a question of
standard, of sound currency. All Eu-
rope is practically on gold standard.
partly from choice and partly from ne
cessity. The countries of Europe are in
clined to adapt themselves to the gold
standard, and do not believe any loss
CT small per cent would stand in the
way of their doing that. Besides, they
believe it would BE- temporary meas
ure; that we could not sustain free
coinage of silver, and that it would be
to their Interests to take advantage of it
while we were making the experiment.
That, in my Judgment, is the belief of
Europe financiers.
To Mr.. Bland, Mr.. Leech said that he
believed the silver would come here as
long as we changed gold Tor 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 practically interconvertIble with
gold
Mr.. Leech admitted that it was a mat
ter of opinion and of conjecture, but in
his Judgment free silver coinage would
either send gold abroad or to premium.
Mr. Biand-Have we gold enough to
buy shipload Of silver? Mr.: Leech-
We think we have enough to buy the
worlds stock.
Mr.. Bland suggested that the propo-
sitiou of Mr.. Leech was that the people
of Europe would take their silver from
home, where it would buy az much as
gold, admitting that 1t was not worth as
much for foreign transactions. and sell
1t here, where they could not buy as
much for it as at home. Mr.. Leech in
sisted that that would be the case. be-
cause of rhe desire of Europe to get on
a gold basis, and said Austria was con-
templating that very thing. MIR. Bland
said that so was Germany contemplate
Ing 1t, but she stopped soon.
A query by Mr.. johnson. of North
Dakota, as to whether or not the United
States had any agent abroad with view
to learning the sentiment toward BIZ
metallisn and an international agree
ment, led the discussion into the field of
International agreements. Mr.. Leech's
reply to the question propounded by
MIR. johnson was that we had requested
certain gentlemen who were going to