The midland journal. (Rising Sun, Md.) 1885-1947, 1892-03-18
The Coinage Act of July IA, 1890

The Coinage Act of July IA, 1890.
The following inquiries were sent to Sec
rotary Foster for answering
First-Is it true that the act of July IA
increases two and a-half times the coinage
Of eighty cents worth Of silver into dollar?
Seconds the government at present
coming silver2 If not, when was the coin i
age stopped.
Third-Upon what are the present Treas.
ury notes based Are they secured BY a
coined silver dollar, or upon 1G0 cents
worth of silver bullion purchased at its
market value in gold L?
Fourth How does the basis Of the present
notes differ from the silver certificates
formerly issued?
Fihh-Are not the present notes redeem
able in either gold or silver coin at the
United States Treasury? Does the govern
ment SO redeem them when presented?
The following reply from Secretary Fos-
ter, dated October 10, was received BY Mr..
Hayes.
Replying to the interrogatories relating
to silver, submitted in your communication
of the 9Th inst, would say as follows:
1. The act of July IA, 1890, does not in
crease the coinage of silver dollars, bu,
since the LIST of July of the present year ba'
practically stopped such coinage. The act
provided for the purchase of $500 .00C
ounces of silver month, about two and a.
half times the amount Of silver purchased
under the act Of 1878; and the coinage into
silver dollars of 100000 ounces monthly
(which was about the amount coined under
the act of 1879 until the 1st of July of the
present year. After that date only such
silver dollars were to be coined as were
necessary to provide for the redemption o.
the Treasury notes issued 10 purchase o.
silver bullion. AS no Treasury notes are
being presented for redemption in silver
dollars, the coinage OF silver dollars from
bullion purchased under this act has prac-
tically ceased since July /, 1891.
/ 2. The minis are at present engaged in
coming the silver bullion resulting from The
redemption Of trade dollars, as required by
the act of March 8, 1891, and in recoininl
the subsidiary silver coins in the Treasury
The total coinage of silver dollars under
the act of Jaly IA, 1890, from July IL
October !, 1891, has been only $4,000
mainly for use on the Pacific Coast.
| 8. The present Treasury notes are issued
in the first instance, upon the purchase o
silver bullion, 500, 900 ounces month
at its market price. The law requires thai
the cost Of the silver bullion and the silver
dollars coined therefrom held in the Treas
ury shall always equal the amount o.
Treasury notes outstanding, SO that these
notes have practically behind them good
dollars worth Of silver bullion.
4. The Treasury notes differ from the
silver certificates in that they are redeem
able in either gold or silver coin at the
discretion ofthe Secretary of the Treasury
with provision of law to the effect tina,
these two dollars shall be maintained al
parity, which is virtual promise that the
notes shall always be redeemed in gold oil
its exact equivalent. The silver certificates
are promise to pay silver dollar, which
has been deposited in the Treasury at the
time the certificate was issued, and ting
are receivable for government dues The
language Of it is:
"This certi6es that there has been depos-
tied in the Treasury of the United States
one silver dollar, payable 10 the bearer on
demand" while the language Of the Treas
ury note is: 'The United States of Amer
lea will pay TO bearer one dollar in coin.''
In addition to being redeemable in gold
and silver coin. at the discretion of the
Secretary of the Treasury. and practically
under the pledge to maintain the two
metals at parity in gold, the Treasury
notes have, as stated above, behind each
dollar practically gold dollars worth OF
silver bullion, while the present silver
certificate is promise to return to the
bearer a silver dollar.
8. Treasury notes are redeemed in gold
when 50 presented for redemption at the
Treasury or any assitant treasury in the
United States.
A careful reading of Secretary Fosters
plain answers TO the plain questions put to
him, will reveal the magnitude ofthe fraud
practiced upon the people in their demand
for free coinage by the conference silver
bill Of 1890, which was the last piece Of
John Sherman's fine financial work for his
clients, the Wall street gold ring.
First the Secretary tells his inquiring
friend that the act of July IA, 1890. does
not increase but stops the coinage of silver
dollars. as no treasury notes are being pre-
sented 10 exchange for silver dollars, but as
4. - - IL