Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1893-06-18
Financial Questions.
NORFOLK. Va. june Is, 1898.

NokfoLK, Va, june IL, 1898.
To nc Editor Of nc Dispatch:
The United States Treasury IL. under the
operation OF the Sherman act of July Il.
1870, purchasing silver bullion at the mar.
ko' price and paying for the same in legal
'f"'er paper notes. one OF which, now before
me, reads as follows:
Tho United States Of America will pay to
bearer i've dsiiars In ooN. Washington, u. CT
VIII you kindly inform your readers
what authority there is for the statement
that the United States Government il buv-
ing silver bullion and paving for the same
IN qodI IL the notes above referred 10,
after being issued to pay for silver, are. by
order of the President or the Secretary OF
the Treasury. being redeemed exclusively
In oo'd COW (Which gold coin was pur-
chased and deposited In the Treasury "a a
reserve for redemption Of green backs
old United States Treasury nstes), and if
the Treasury Department refuses or de-
ciineS 20 pav ont legal-tender silver dol
lars lawful United States "GoIN") in re-
demphon of the sherman Dotes will you
kindiy inform your readers whether this
policy Is oeed'ent 10 the true Intent and
meaning OF the Sherman act Of July II,
1899?
Would IL be violation Of faith or breach
OF contract TO redeem those Sherman notes
wholly or partly III legal-tender silver dol
lars II the option, plainly reserved by
the United States, to pay either IN god
or sitver n not ayaIle3 OF bv the govern
ment and il thereby loses gold. should the
harm resulting be charged to the Sherman
act vt 1890 ar 10 the policy of the Cleve-
land Administration? INQUIRER
In general terms we answer that the
United States Government first buys sill
yer bullion. 1t issues coin-notes, PAYABLE
in t-l, z,fr La nf
the Secretary Of tho Treasury. under in
junction Of maintaining bimetalhc parity.
The holder of these notes presents them
tor redemption aud demands gold. If the
Secretary refuses to paw gold but pays sill
vor instead, against which metal is he dis
eliminating. tho silver which he uses
or tho gotd which he keeps?
1t is Mr.. Watterson who asks this ques-
ton Inquirer will see that hIs inter
rogatories are thus replied TO. 1t seems to
be the same thing as buying silver bull
hon and paving for tin gold" In a word,
the option is with he holders Of the re-
deemable currency to take either gold or
silver That Is the custom OF the Tres-
sury. which fears that to pay ont silver
would be to drop at once to the single sill
yer standard.
LANCASTER COURTHo USE, Va.
To NE E9itor Of d,e DlsDa'ct:
Tlease answer the following questions
and oblice an old subscriber:
l. WHY is 90 much gold being exported
from the Unite States:
?. Is it because the balance OF trade IL
against us?
3 Or because United States bonds held
IN Europe are being sent here for redemp-
ton:
A. Or because tho monometallists and
capitalist are trying To force gold M to
premium!
3. Why is il necessary for the United
States TO keep agold reserve of 800, WO.0JO
ALWAYS ia the Treasury! j. y.
/. II il 10 paw our inde btedness to for
eign countries.
2. Yes: Of course But among the arti-
Giles whose importation" to this country
causes the balance of trade 10 be against
US are securities of the United states
q .vernment and of the several States,
and of railroads and other corporations
Gold il not imported TO anv country nor
exported from it Just for the run of the
thing" Wherever it goes 1t belongs.
"eobble UP" our gold than we a-e 20
L" gobbie up theirs and no sucn COB
bling is resor.ed 20 except as means OF
paving debts.
3. See above.
4. The mononetsllists and capitalists
are not trying 20 force gold up to a pre-
MUM. They have 40 reason for dong 50.
They are more afraid of It's parting COM
pany with silver than any other class of
the community. Doubtless their unw'se
clamors against silver had much to do
with the recent strineency IN the money
market. but they verify thought they were
dong Alright Their cries alarmed Euro
pean investors and panic was the result.
s. To redeem obligations; or. III q word,
TO keep SILVER and gold at a parity O6
20 i.