The record-union., 1892-02-06

Reference has been made to the Act of
January IA, 1873, providing for the re-
demptlon OF specie payments. That Act
provides that:
On and after the first day of January A. D.
1879, the Secretary of the Treasury shall re-
ueefn, IN coin, the United States Iega-tender
notes tnen outstanding, on their presentation
LOT redemption at the Office OF the Assistant
treasurer OF the United State in the city Of
| New York, III sums of not less than $50 And
to enable the Secretary of the Treasury to
prepare and provide Tor the redemption in this
ACT authorized or required, he is authorized
10 use any surplus revenues, from time TO
tlme, IN the treasury not otherwise appro-
prlated, and to issue. sell, and dispose OF, at
not less than par in coin, either of the deScrip
ions OF bonds of the United States described
IN the Act of Congress approved July Ii,
1870, entitled "An Act TO authorize the re-
funding of the national DEBT" with like quail
ties, privileges, and exemptions, TO the extent
necessary TO carry this Act into full effect, and
10 use the proceeds thereof, for the purposes
aforesaid.
The Act authorized the sale of bonds to
redeem, in coin, the Treasury notes then
ION the lst OF January, 1879 outstanding.
and none other.
THERE IS NOT A SHADOW OF AUTHORITY
In the Resumption Act, or any other Act
OF Congress, to authorize the Secretary
to sell bonds and buy gold with which to
redeem the Treasury notes issued under
the Act of 1880. There is no alternative
for the Treasury Department but to use
silver dollars to redeem Treasury notes,
unless there is gold in the Treasury to
enable the Secretary to exercise his dis
cretion. With five hundred millions of
silver coin and silver bullion awaiting
coinage, and 100000 ounces of silver to
be accumulated annually, it is hardly pos
sible that the Secretary Of the Treasury
will be able to avoid the use of silver for
the purpose of redemption as contem-
plated by the Act of 1880.
The President informs rs that certain
powers exist in the Treasury Depart
ment, and certain assurances have been
given, but he is not very explicit as to
what assurances have been given, or
what powers are to exercised to maintain
the parity IN the use OF coined dollars and
their paper representatives. He says:
Under existing legislation it is in the power
OF the Treasury Department to maintain that
essential condition of national finance as well
as of commercial prosperity-the parity in
use OF the coin dollars and their paper repre-
sentatives. The assurance that these powers
would be freely and unhesitatingly used has
done much TO produce and sustain favorable
business legislation.
IT WOULD BE INTERESTING TO KNOW
What these assurances were and what
powers are to be freely and unhesitat-
ingly used. The President is too good
lawyer to contend that law authorizing
the sale of bonds to buy coin to redeem
greenbackS outstanding in January. 1879,
would furnish authority for the sale of
bonds to buy gold to redeem Treasury
notes issued under the Act of 1890. If he
had not expressly declared in his mes
sage that free coinage OF silver would be
disastrous it would be reasonable to sup
pose that the assurances given would be
a return to bimetallic coinage, the only
method by which the parity of the two
metals has been or can be maintained.
There is no danger of silver basis if
gold ana silver are coined, as formerly,
upon the same terms and conditions,
without discrimination against either.
L submit, however, to the advocates of
the gold standard if the purchase of four
and half million ounces of silver per
month, which, deducting the silver used
in the arts, is more than the American
product, may not in time destroy the
gold standard in this country.
If the gold advocates continue to de-
nounce coined silver dollars as 75-cent
dollars, and the holders of Treasury notes
are compelled to take such dollars in re-
demption and get none other, may it not
endanger the parity between coined gold
and silver dollars and increase the dis
parity of the two metals?
There is no middle ground. The money
of ultimate redemption, which forms the
basis OF circulation and credit, must be
limited and determined as to amount by
gold or by silver, or by the aggregate of
both. The money function performed by
/ Il
quantity.
FROM TIME IAIMEMoRIAL,
| Previous to the demonetiZation of silver.
the basis of the worlds money and credit
was the aggregate of the two metals COM
bined. The attempt to discard silver and
use gold alone has been disastrous The
Secretary of the Treasury never uttered a
more obvious truth than when he in
| formed the bankers OF New York that
| iS no arn fcY
If he had told them the whole truth, he
would have informed them that there is
no possibility of increasing the metallic
money of the world except by the restor-
alton of silver to the place it occupied as
a money metal prior to 1873. Silver can
not supplemnt gold as money of ultimate
redemption, so long as the Government
SpeculateS in 1t as commodity and de-
MES it free coinage at the mint.
The President has proper regard for
the producers and laborers, and express
ses his concern for them in unmistakable
terms. He says:
The producers of the country, its farmers
and laborers, have the highest interest that
every dollar, paper or coin, issued by the
Government, shau be as good as any other. If
| there is one less valuable than another its
| sure and constant errand will be 10 pay them
for their toll and tor their crops. The money
| lender will protect himself by stipuating for
payment in gold, but the Iaborer has never
Deen able to do that
1t is true that the laborers and produc-
ers are overmatched by the cunning and
avarice Of money-lenders, and are COM
PEELED to submit to usurious contracts,
But when the Government combines
with the exploiters in money, the situa-
ton of the farmers and laborers is de-
plorable. 1t was the Government that
reduced
THE VOLUME OF REAL MONEY
OF ultimate redemption about one-half
by demonetizing silver, and by that
means deprecated the price of property
and labor in corresponding ratio. Con-
gress, however, never changed the con-
tract with the bondholders from a con-
tract payable in either gold or silver to a
contract payable in gold alone. The Ex-
ecutive Department, without the author
ity of Congress, has done this.
Every obligation of the Government is
and always has been payable in silver
coin, but the Treasury Department has
refused to pay in such coin. That de-
partment ever since the close of the war
has maintained that silver was not good
enough for the bondholder, although
greenbacks were considered good enough
for the soldier who fought the battles of
the Union. If the Treasury Department.
would make no discrimination in the use
of gold and silver in the payment of ma
to receive the despised silver coin.
the bondholder or the Iaborer?
1t is the fault of the Government. and
particularly the administration of the
| Treasury Department, if the cheap green
backs were paid to the soldier while the
dear gold dollars were paid to the
rich money-lender; it is the fault of the
Treasury Department if the best money
is paid to the bondholder and a depreci-
| at fp6 tn hn loh