The record-union., 1892-02-06
FREE COINAGE OF SILVER.
Speech of Senator William NJ.
Stewart of Nevada.

An Able Presentation of the Whole
Question From the Side of the
Advocates of the Measure.
The speech delivered by Senator Will
lam NJ. Stewart in the United States Sem
ate on the 18th of December last, on the
silver question, will be read with interest
by all who desire to be enlightened upon
one of the leading issues in the coming
campaign. While it disagrees with the
position taken by the Senator from Ne
vada, the RECoRD-UNIoN publishes the
speech in order that its readers may be
fully informed on both sides of the ques-
ton. Following is the full text of the
speech:
Mr.. President: desire to submit some
remarks at this time upon that part OF the
Presidents annual message which relates
to silver coinage.
The Act of July II, 1890, to which the
President refers in his message, was a
compromise measure. The Senate passed
bill providing for free bimetallic coin
age. The House amended it by a substi-
tnte, providing for the purchase of silver
bullion and the issuance of Treasury
notes thereon, redeemable in bullion. 1t
was known as the bullion redemption
bill. The Senate refused to concur. A
Conference Committee was appointed,
which reported a compromise measure
which is now the law.
The law provides for the purchase of
100000 ounces of silver per month and
the issuance of legal-tender Treasury
notes thereon at the market value Of the
bullion.
THESE NOTES ARE REDEEMABLE IN COIN,
Either gold or silver, at the discretion of
the Secretary of the Treasury, and the
Secretary Is required to coin sufficient of
the silver bullion so purchased to pro-
vide for the redemption of the notes.
The law has increased the circulation
by the difference between the coinage
value Of Sd, 100000 worth of silver bull
ION and $4,000, 0O0 ounces of silver bullion
per annum. 1t has also increased the
price of silver bullion. During the fiscal
year ending June 80, 1889. before the sill
Yer agitation commenced, the average
price of silver was a little over S31
0.93o31) cents per ounce. During the last
fiscal year the average price has been a
little more than 81 % (Sl. .052935) per ounce
The war on silver and the falling off of
the Asiatic demand have now reduced
the price of that metal to about 95 cents
an ounce. The tendency OF the Act of
1880 is to enhance the price OF silver by
creating an additional demand for it.
But 1t is demonstrated that nothing short
Of free coinage will advance silver to par
with gold at the ratio of 10 to l and keep
it there.
THE PRESIDENT HAS BEEN MISINFORMED
With regard to the predictions of those
who voted for free coinage in the last
Congress. He says:
The ablest advocates of free coinage in the
last Congress were most confident in their pre-
dlctlons that the purchases by the Govern
nent required by law (the law of 1S90) would
at once Drlhg the price of silver to S1.2929
per ounce, which would make the bullion
value OF dollar 100 cents and hold it there
know nothing of private opinions ex-
pressed to the President, but no member
OF either house who voted for free COIN
age IN the last Congress- so far as my in
1ormatlon goes, ever expressed such an
opinion in the debate. On the contrary,
every Democrat who expressed any opin-
ION with regard to the bill as it finally
passed declared that it was step back
ward; that its tendency would be further
to degrade silver to a commodity, and be
detrimental to the cause OF free coinage
The free-coinage Republicans, however
belleved that larger use of silver by the
United States, for which the Act pro-
vlded, would furnish more currency and
tend to enhance the price of silver. They
stated that in their opinion it was step
in the right direction; that it was all they
legislation.
L have examined with care the debates
IN both houses, and tail to find any ex-
pressiou on the part of any free-coinage
advocate to sustain the statement in the
PRESIDENTS message. | must, therefore,
conclude that he has been misiniormed
as TO the views of the advocates of free
coinage, SO far as publicly expressed.
do not believe that the force and effect
OF the present law was then or is now
understood. The
OPPONENTS OF FREE COINAGE,
Who offered the law as an alternative to
no legislation, may find further legisla-
ton necessary TO relieve themselves from
an uncomfortable position. If the pres
ent law should destroy gold monometal-
ism and fail TO give the country the bime-
tallc system, dissatisfaction may arise in
many quarters, and all parties may con-
sent to resort to free coinage as the only
possible solution. The Act of July IA
1890, recognizes that it is ''the established
policy of the United States to maintain
the two metals on a parity with each
other upon the present legal ratio, or
such ratio as may be provided by law"
Mark the language: 1T being the estab-
lished policy of the United States to main
tam the tloo metals on parity upon the
present legal ratio.'
No reference is made to the coined dol
lars. They can be made equal to each
other by the stamp of the Government
and promise to redeem the silver dollar
with the gold dollar. But the Act goes
further, and declares it to be the policy of
the United States to maintain 4l21 grains
of standard silver at the same value as
25.S grains of standard gold. This can be
done by redeeming silver dollars in gold
dollars. Both metals must be used as
money by the free and unlimited coinage
of each.
The fluctuations in the price of silver
since 1t was excluded from the mint de-
monstrate that the equality in value of
4l24 grains of standard silver and %. s
grains of standard gold cannot be main
tanned while the one can be exchanged at
the mint for dollar and the other cam
not. Twenty-Five and eight-tenths grains
OF standard gold are always worth dol
lar, because they can be exchanged at the
mint for dollar. Previous to the
DECENTRALIZATION OF SILVER
-Four hundred and twelve and one-half
grains OF standard silver would always
sell for dollar in the market, because