Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-05-22

| onstrated by the fact that it has been founo
impossible to get more than one-third OF IT
into circulation. In order to obviate this
difficulty, various devices have been intro
duced for keeping the coin in the Treasury
and issuing against it paper certificates OF
small denomination. The most ingenious
ofthese contrivances was the one proposed
by Hon. A. j. Warner, of Ohio, and pressed
| on the Government for its Endorsement.
Mr. Warmers measure virtually comedies
that the coinage of the silver dollar has
already been carried to point that threat
ems serious danger to our currency system.
1t first proposes to discontinue the cur
rent monthly coinage of silver dollars re-
| quired under the existing ''Bland act y
in lieu of such coinage holders of silver bull
ion may deposit it to any amount in the
United States Treasury, the Government to
issue to such depositors "bullion certif-
Gates, expressing an amount OF money
equal to the market value of the bullion at
at the time of its deposit. These certificates
are to be a new form of currency, employ
able by the Government in liquidation of all
its debts not expressly made payable in
| gold, and it would be required to accept
them in payment of customs Duties taxes
and public dues generally, the national
| banks being required to accept them in pay
ments between themselves.
The measure further proposed to make
these certificates redeemable in lawful
money-gold, silver or United States notes
or at the Treasury's option in silver bull
ion at its current value at the time of re-
demption.
There is a very positive doubt of the con-
stitutionality of this plan. The Constitu-
tion does not convey upon the Government
the right to receive silver bullion deposit
To become the custodian of bullion and to
issue especially prolonged receipts would
be breach of the true functions of govern
ment and of the constitutional limitations
of federal authority.
Forced Exchange OF Gold for Silver.
The provision made for the redemption of
such certificates would be to the last degree
Objectionable. If the Government redeem
them in lawful money, it exposes itself to a
new demand upon its legal tender notes or
its gold, and as the amount of greenbacks
owned by the Treasury now runs SO low as
to prohibit their use for the purpose. the
redemption would have to be made with the
Treasury gold, thus exchanging Govern
ment gold for silver bullion. What could
silver men desire more? What could all
other interests dread more? The Govern
ment would be ultimately driven to redeem
the certificates in silver bullion. What
does that imply? First, that the Treasury
would have to stand the loss upon the de-
posts of bullion that might arise from fall
in its value.
Take case for illustration. A deposit is
made of l, 200, 900 ounces of silver when the
current price is 81 10 per ounce, the Treas
ury being required to issue against it 81, 1O0,-
600 of certificates. Later, when the price
of silver has fallen to say 81 05 the 81, 100,-
900 of certificates is presented for redemp-
tion, and 1, ,047, GIG ounces of silver have to
be delivered, as the bullion equivalent at
the current market value, the Government
losing AZ, 619 ounces of silver Seeing the
profit made by depositing bullion at high
price and withdrawing it at lower, will not
all who can do so work this Treasury silver
mine to the utmost? Unprincipled specu-
lators would mulct the Government out of
millions of dollars. Speculative combina-
tions would be formed with London bullion
dealers. European bullion would be secured,
and sent to our Treasury after Its price had
been advanced. The price would then be
forced down and the certificates presented
to be redeemed by much larger quantity
of silver than that deposited against them.
The Government would lose in every deal.
No finer scheme for spectators could be
many ways dependent upon the value of
silver, nothing could be more serious
Our Gold Would Go to Europe.
There is nothing in the measure offered
by Mr.. Warner that would prevent the
United States Treasury from being saddled
with as much of the European stock of
silver as Spectators find it to their interest
to send here in addition to the product of
our own mines; and for such deposits the
Treasury would be compelled to pay what
ever artificial price it suited the operators
to determine. And what does such trans
fer involve? First, that we should have to
ship SO much more gold to Europe, making
the operation a virtual change of Europes
silver for Americas gold; next, that the
United States Government would thus be
made to bear the sole weight and RESPONSE
bility of carrying the worlds surplus of
silver; next, that, as consequence, Eng
land, Germany and other nations would be-
come still more reluctant than they now are
to negotiate for an international settlement
of the silver question; next, that the Gov
ernment would be so handicapped with its
enormous load of silver as to place it at an
utter disadvantage in such negotiations;
next, that the Government would be ex-
posed to immense losses in assuming such
vast responsibilities; and, next, that the
this mass of bullion would be o forcible
and artificial initiation of the currency,
which could not fail to produce disaster to
all the material interests of the country.
Of course such an arrangement would be
all that the silver interests could desire.
For them, indeed, it would be far better
protection than the Bland act. But this
advantage would be only temporary; for
when the scheme broke down of its own
weight. as sooner or later it must, the
miners would be exposed to ruin from the
consequent commercial arrangements.
The only wholesome treatment of this
question is to repeal the silver coinage act
That done, we should add $25, 900, 900 to our
yearly exports, instead of locking up so
much of our national product as dead cap
ital in the Treasury, while that increase of
exports would give US greater command
of European gold and thereby strengthen
our international position on this question.
Europe, and especially England, would then
be compelled to earnestly consider meas
ures placing the double standard upon q
broad and lasting international basis; and
as such disposition began to manifest
itself the silver market would so far sympa-
thize as to amply compensate producers
for any losses they might suffer from .
temporary fall in bullion.
HENRY CLEwa