The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1893-11-17
SOME FACTS.

Secretary Carlisle's order to the mint
superiniendents TO prepare for the coinage
into standard dollars Of the silver bullion
purchased under the Sherman act indicates
decided change in policy on the part Of
the administration in regard to the gov
ernment's silver holdings. With silver
purchases at an end, The administration
proposes 10 utilize the seigniorage which
will be gained by the coinage of tie bull
lion, and in this way help 10 relieve the
treasury, which is confronted with defci,
of $50, COG. eco at the cIose of the fiscal year.
II the full amount of the bullion il COIN
ed the seigniorage that will be paid into
TIE treasury will approximate SIS, ,0O0, coo;
but, with the limited capacity Of the mints
the whole of this sum will not be available
for three or four years. The secretary OF
the treasury cannot anticipate the seignior-
age, or, in other words, ca'cu'aie the
amount. and then issue silver certificates on
this basis, for the reason the seignioeage
does not become treasury asset under the
law until the bullion is actually coined.
Tae additions TO the treasury balances from
this source. therefore, will hardly exceed
81 500. 600 month.
But for The provision in The Sherman
law which direcied thai 2,eOO, COO ouaces
of silver should be coined each month until
July }, 1891, about one year after the pas
sage Of the Law, no seigniorage would have
been utilized up to this time. as no other
silver dollars have been coined.
That the administration should adopt
the policy indicated. shows plainly that
the treasury is in need Of immediate aid 10
meet the demands upon it, The seigniorage
on the basis OF the 50, coo 600 silver dollars
coined during the frs, year amounted to
81, 800, coo. and the greater par; of this Was
used by Secretary Foster II the silver
bullion had teen coined from the first for
redemption purposes the treasury depart
nent would be able TO Immediately issue
upward Of s20. COO, ,0c0 Of silver certificates
on the accumulated seigniorage. But the
silver has been stored in ,he vaults and
nox in order 10 realize the ssigniorage the.
vast amount will have TO lie turned into
standard dollars
0Perhaps the use Of this seignIorsge would
not have been advised If the Sherman law
had not been repealed and the purchase 0
silver stepped. If this seignIorage had
been taken advantage Of .he issue Of eeEti-
hcates thereof might have served TO further
disturb pablic confidence. With the chief
source Of alarm removed and the issue Of
treasury notes limited, hoxeytr, it is not
thought that the issue will have zny tad
effect The use Of the seigniorage in this
way will have .he effect Of Increasing the
circulation. and this Is the only means,
outside Of the hank circulation Of bonds,
that Is provided for making such increase.
II viii not equal the increase under the
Sherman law. tlt igaring on the capacity
Of the minis. il will amount 10 upward Of
81. OF, 600 year.
TIE operation Of the new policy, however,
nay lead 10 the retirement Of the treasury
notes of small denomination When notes
u Isssss SEarzeg<x are Ee1eeuled The secretary
rsay mot reissue them. bat use silver DOL
lars in their place,
Every dollar 50 redeemed would 50 add
10 the pCcsectlOn ns the gold reserve. Treas
notes are redeemAhle in gold or silver coin
at the option Of the secretary. and they
have played an iuportan, part In the with
drawai Of gold for export. According TO
treasury figures. no less than S52. 30 .00c Of
.hs issue Of sl52- 600 600 has besn redeem
Cd in gold Just what TIE secretary plans
are in this connection no one knows. and il
is doubtful II any line Of policy bearing on
this point has been decided upon by the
administration.