The record-union., 1892-02-06

C'hC - CACluutu ITOIfl l10 lillt1t anu SUI
Ject TO fluctuations in the market and the
other is not. The parity of the two metals
can be maintained at the ratio established
Dy law only by the free and unlimited
coinage of both. Consequently, free BIZ
metallic coinage is "the established policy
OF the United States,' as declared i'll the
Act of 1890. Whatever may have been
the views of the advocates of free coinage
In the last Congress as 10 the effect of the
Act of 1890 in advancing and maintaining
the price OF silver, it is manifest that the
majority of the two houses who voted
for the bill expected and intended that
the law should raise the price of an ounce
OF hne silver to 1899 and keep it there;
otherwise they would not have stated in
the Act that such twas the established
policy of the United States.' The de-
clared intent and purpose of the Act have
not been carried out in practice. 1t has
not maintained the parity of the two
metals. Further legislation is necessary
Tor that purpose. Free bimetaliic coin
age Is the only method by which the
parity OF the two metals has been or can
be maintained. Will Congress abandon
the established policy of the Government,
or Will 1t maintain such policy by free
and unlimited bimetallic coinage?
WHEN BIMETALLIC COINAGE WAS ABAN-
DoNED
tImated that the gold and silver coin of
the world amounted to about $780,
OO0,CO0. This coin was, as expressed by
the Royal Commission of England, prac-
tically one money for the purpose of
commercial exchanges and as reserves
Tor both public and private and financial
institutions. There has been no material
increase in the gold coin of the world
since silver was demonetized. The an
nuaI product has been mostly absorbed
for non-monetary purposes. The gold
coin OF the world at present does not ex-
ceed So, $50, 100000, or about one-half of
the aggregate of gold and silver coin in
existence eighteen years ago. If 81 500
100000 were not too much in 1873. can it
be shown that one-half of that amount is
sufficient now? The parity of gold and
silver coin maintained by promise of
redemption in gold does not enlarge the
basis OF circulation and credit. In such
case silver coin is as much credit money
as paper. The paper and silver are both
bought in the market and promises to
pay printed or stamped thereon. The
policy of the Treasury Department since
silver was demonetlZed has not been in
accordance with the established policy of
the United States to maintain the parity
OF the two metals at the ratio fixed by
law. That department has Disseminated
against silver in the payment of the pub
lie debt, and thereby degraded and de-
preciated the white metal, contrary to
the established policy of the United
States. Every obligation of the Govern
ment is, and always has been, payable in
silver as well as gold, but the Secretary
OF the Treasury has uniformly paid the
bondholders in gold alone, when it was
for the interest OF the United States to
pay IN silver.
THE LAW ON THIS SUBJECT
Is concisely and distinctly stated in the
following resolution of Congress, passed
on January 2S, 1873:
WHEREAS, BY the Act entitled "An Act TO
strengthen the public credit, +" approved March
Is, 1869, it was provided and declared ~ at
tne faith of the United States was thereby sol
emnly pledged to the payment in coin, or its
equivalent, of all the interest-bearing obliga-
tons OF the United States, except in cases;
where the law authorizing the issue of such
Obligations mad expressly provided that the
same might be paid III lawful money or other
currency than gold and silver: and whereas.
all the bonds of the United sta es authorized
TO be issued by the Act entitled "An Act to
authorize the refUnding of the national debt -
approved July Ia, 1870, by the terms OF said
Act were declared TO be redeemable in coin of
the then present standard value bearing in
terest payable semi-annually IN such coin.
and whereas, ali bonds of the United States
authorized to be issued under the Act entitled
IAN Act TO provide for the resumption OF
specie payments" approved January Id
1875, are required to be of the descrintion of
bonds ofthe United States described in tbesaid
Act OF Congress approve ed July IA 1870 en-
tilted AN Act to authorize the refunding OF
the national debit; and whereas, at the date
OF the passage of said Act of Congress last
aforesaid, to wit, the 14th day of July 1870
the coin of the United States of standard
value of that date included silver dollars of
the weight of 4121a grains each, declared by
the Act approved January Is, 1897, entitled
IAN Act supplementary to the Act entitled
An Act establishing mint and regulating
the coins CT the United States,'" 10 be legal
tender OF payment, according to their nOini-
nal value, for any sums whatever; therefore
ReSOtred by the Senate The House Of Hepre-
SentdtiueS cOncu77i1lg tberein), That all the
bonds of the United States issued or author
lied to be issued under the said Acts of Con-
gress hereinbefore recited are payable, prlnci-
pal and interest, at the option of the Govern
ment OF the United States, in silver dollars, of
the coinage OF the United States containing
412H grains each of standard silver; and that
to restore to its coinage such silver coins as a
legal tender in payment of said bonds, princi-
pal and interest. if not in violation of t4e pub
lie faith, nor in derogation of the rights of the
public creditor. Congressional Record Forty
fifth Congress, second session, volume z, part
1, page 627.
If the Secretary of the Treasury had ex-
ercised the discretion confided in him by
the Bland Act and bought and coined
Si,00O,OO0 worth of silver bullion per
month and paid it out to the bondholders
according to contract silver would have
been
REMoNETIZED LONG AGO.
Silver would then have been the money
of the bondholders, and they We're DOW
erful enough to see to it that their money
was not degraded or deprecated.
The Treasury notes issued in the pur-
chase of four and half million ounces of
silver bullion per month under the Act
of 1890 are made redeemable in gold or
silver coin at the discretion of the Secre-
tary of the Treasury. The language of
the Act is that
Upon demand of the holder OF any of the
Treasury notes herein provided tor the Secre-
tary of the Treasury shall, under such reguIa-
t1onS as he may prescribe, redeem such notes
in gold or silver coin, at his discretion it be-
ing the established policy of the United States
to maintain the two metals on a parity with
each other upon the present legal ratio = x
That he shall coin of the silver bullion pur-
chased under the provisions OF this Act as
much as may be necessary to provide for the
redemption OF the Treasury notes herein pro-
vided for.
The discretion is manifestly given to
enable the Secretary of the Treasury to
maintain the parity of the two metals.
not to degrade silver by giving prefer
ence TO gold, which had been the practice
of the Treasury Department.
1t has been suggested that silver will
not be used as provided by law for the
purpose of redemption of treasury notes.
but that gold will be bought by the sale
of bonds and the national debt increased
to redeem treasury notes, while the silver
provided for that purpose lies idle in the
treasury. Such suggestion is in
PLAIN VIOLATION OF THE LAW.
There is no law authorizing the Treas