The morning call., 1893-07-03

ness are the legitimate consequences OF
those acts
1.-THE natural or normal results of this
legislation would probably have followed
much sooner but for the many abundant
crops of this country and the numerous
failures in that respect abroad. Under the
act of 1873 the Government purchased
291. .292 019 ounces of fine silver, at d cost
of S30S, I99. 262, and coined it into silver
dollars, to the amount of S37S. 1856 1893. The
profit OF nearly $4,000. 600. made by stamp
ing falsehOod on the coins. was covered
into the treasury as o much profit. Under
the act of 1890 the Government. up to June
/. 1898. purchased S145. Sol, ,S57, and under
injunction continued the coinage of silver
for year. Under the act of 1890 there
were coined additional dollars to the
amount of Boost. O40. Adding to these
amounts the recoinage of trade dollars
into standard dollars. we had on June /,
1898, coined silver dollars amounting to
S419. 332, ,305.
IF we take the market price of silver on
June (S3 cents per ounce the loss on this
bullion so purchased by the Government
on that day was SS3, 51S62S. On June 26.
1898, bar silver was worth only 73 cents
per ounce. entailiDg upon the Government
an additional loss of S44, $50, 432 in less than
a month.
1T was obvious to the least discerning
financiers of the country that the act of
1878 would eventually bring about a stand
ard of dscredited silver. Hence, from the
beginning these dollars have been received
with great distrust. But Congress, having
entered upon strange scheme of expaD-
sion, determined the power of the
Government to force circulation
upon an unwilling public. 1t decreed
that no national bank should belong to a
clearinghouse that refused silver ceriifi-
Gates in payment of balances. When
bank charters had to be renewed the re-
newals were conditioned on the receipt
and circulation of a currency already bad
and getting worse every day. The Gov
ernment entered the field as common
carrier and transported, without charge,
unacceptable currency to any part of the
country that would deposit gold for it In
the sub-treasuries. Thus the Government
sowed the wind. and now, by a just law
of retribution, reaps the whirlwind. The
public demands that gold back, and the
Government must pay it or embark at
once on treacherons sea Of deprecated
currency.
when the pains and penalties failed to
coerce the banks the persuasion Of sell
in terest was resorted to. and they were
offered the bribe that the silver certifi-
Gates received by them might be counted
in the bank reserves Finally, when the
banks remained obdurate against the ex-
action, the Government thought the gen.
eral public might surrender to the tempta-
tion Of small notes, and to that end. in
1885, it enacted that the Secretary of the
Treasury should thereafter issue silver
certificates in denominations of 81. So and
S. and that the larger certificates already
issued under the act of 1873 might be ex-
changed for smaller denominations.
IF greater expansion of the currency
had really been required by the legitimate
demands of business it might have been
secr~ed, Is seems to me, by inducing the
increase of national bank notes. cur
rency secured by United States bonds,
payable in gold, and always worth pre-
MUM. Instead of this a contrary policy
was most persistentlv pursued, resulting
in a decrease of specie paying bank notes
from $3.50, 900, 900 IN 1888 to S182.000, 900 in
1892
while this better currency was being
driven out by unfriendly legislation the
channels of business were being gorged by
an issue OF 100000 Of silver dollars,
1855, 100000 of silver certificates, and
finally, under the act Of $780, by the Issue
of S154, 100000 more of treasury notes in
the purchase of silver bullion at an en0r-
nous loss TO the people and Government.
"Of the FIVE or six hundred millions of
gold with which we began in 1873, none
can now be found ia circulation. What has
not gone to foreign countries. enjoying
the blessing of a single standard, has been
boarded, not to appear until its holders
have some guarantee that, If leaned. it
will be returned in money equally good.
'-"The gold certificates not already forced
upon the Government for redemption, for
which the 500. .00G,0 900 reserve is supposed
to be held by the Government, constitute
the best security Of the national banks,
and hence the great sack is rapidly disap-
pearng. National bank notes are neces-
sarily held, if possible. by the banks issu-
ing them in the fear that in the extremity
of the distress, their redemption may soon
be asked in gold.
IN NOCNlDg Is l6IC Dut SitVoT .CoTLlHCatcS
and treasury notes. The banks are unable
to maintain the lawful reserve. hence they
can give no relief 10 the suffering COM
mnnity. The Government Treasury is
depleted Of its surplus and Government
expenditures exceed the Government re-
cepts. Extrayagant appropriations. made
upon silver basis. must now be paid in
that medium of value. The needless prom
ise to pay has new run its brief course, and
its performance comes with suffering aud
tears.
What now is the remedy? :.
'''First-CHstoms duties should hereafter
be paid in gold alone.
"Second-The silver bullion in the Gov
ernment vaults should at once be sold for
cash in gold and the proceeds covered
into the treasury. - 8:
'.Third-Three-per-e gold bonds to
the amount of S30O,0OO.Oo0 should be
promptly sold ard the proceeds trans
ferred to the treasury.
'.Fourth-A day should be set. not later
than January /. 1885, for the redemption
and naymapt in IN Id coir of