Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1893-08-11


to safe investment and with satisfactory
assurance to business enterprise, suddenly
financial distrust and fear have sprang up
on every side. Numerous money institu-
tions have suspended because abundant az
sets were not Immediately available to
meet the demands of frightened depositors.
Surviving corporations and individuals are
content to keep in hand the money they
are usual anxious to loan and those engag-
ed in legitimate business are surprised 10
find that the securities they offer for loans,
though heretofore satisfactory, are no long
er accepted. Values supposed to be fixed
are fast becoming conjectural and losses
and failures have invaded every branch OF
business. 1 believe these things are prin-
cipally chargeable to congressional legisla-
ton touching the purchase and coinage OF
silver by the general government
The legislation is embodied in statute
passed on the 14th day of Jnly, 1896, which
was the elimination of much agitation on
the subject involved, and which may be
considered truce after long struggle be-
tween the advocates Of free silver coinage
and those intending to be more conserya-
tive.
Undoubtedly monthly purchases by the
Government 4,500, 900 ounces ofsilver en-
forced under the statute were regarded by
those interested in silver production as
certain guaranty of its increase in price.
The result. however, has been entirely diff
ferent, fer Immediately following a spas
modic and slight rise the price of silver be-
gan to fall after the passage of the act and
has since reached the lowest point eyer
known. The disappointing result has led
to renewed and persistent effort in the d.
rection of free silver coinage.
Meanwhile not only the evil effects OF
the operation of the present law constantly
but the rosult to which its
execution must inevitable lead is becoming
palpable to all who give least heed to ii
nancial subjects.
This law provides that in payment for
the 4, 800, 900 ounces of silver bullion which
the secretary OF the treasury is command
ed to purchase monthly, there shall be is
sued treasury notes redeemable on demand
in gold or silver coin, at the discretion OF
the secretary of the treasury, and that said
notes may not be reissued. 1t is. however.
declared in the act TO be "the established
policy of the United States to maintain the
two metals on parity with each other
upon the present legal ratio or such ratio
as may be provided by law"
This declaration so controls the action
of the secretary of the treasury as to pre-
vent his exercising this discretion nomi-
nally vested in him, if by such action the
parity between gold and silver may be dis
rurbed. Manifestly refusal by the secre-
to pay the treasury notes in gold, if de-
manded, would necessarily result in their
discredit and depreciation as obligations
payable only in silver, and would destroy
the parity between the two metals by es-
tablishing a discrimination in favor OF
gold.
Up to the 18th day of July, 1893, these
notes had been issued on payment OF silver
bullion purchases to the amout OF $l47-
900, ,000 While all but very small guam
tity of this bullion remains uncoined and
without usefulness in the treasury, many
of the notes given in its purchases have
been paid in gold. This illustrated by the
statement that between May lst, 1892, and
July Is, 1893, the notes of this kind issued
in payment for silver bullion amounted to
a little more than $54, 600, 900 and that dur
ing the same period $40, 900. 900 were paid
to the treasury in gold for the redemption
Of such notes.
The policy necessarily adopted of.paying
the notes in gold has not spared the gold
reserve 800. .000, 900 long ago set aside by
the government for the redemption of 9th
er notes, for this fund has already been
to the payment of new obliga-
tions amounting to about $3.50, 900, 900 on
account of silver purchases and has as u
for the first time since its
creation been encroached upon. We have
thus made the depletion of our gold easy
and have tempted other and more appre-
ciative nations to add it to their stock.
That the opportunity we hav Tered has
lot been neglected, is shown by the large
amounts of gold which have been recently
drawn from cur treasury and exported to
Increase financial strength of foreign ma
lions. The excess of exports of gold over
It's imports for the year ending June 80,
1893, amounted to more than $87, 500, 900.
Between the 1st day Of July, 1890, and
18th day of July, 1893, the gold coin and
and bullion in our treasury decreased
more than $132, 900, 900, while during the
same period the silver coin and bullion in
he treasury increased more than $247, ,000,
700. Unless government bonds are to be
issued and sold to replenish out
exhausted gold, only to be again exhaust.
ID, it is apparant that the operation Of the
lilver purchase law now in force leads in
he direction of the entire substitution of
silver for the gold in the government treas
Try aud that this must be followed by pay
nent of all government obligations in de-
1reciated silver.
At this stage gold and silver must part
and the government must fail in
It's established pslicy to maintain the two
metals on parity with each other. Given
,ver to the exclusive use of currency
greatly deprecated, according to standard
IF the commercial world. we could no
onger claim place among the nations of
The first class, nor could our government
claim performance of its obligation so
far as such an obligation has been imposed
upon it, to provide for the use of the poo
pie the best and safest money. If, as many
Of its friends claim, silver ought to occupy
q larger place in our currency and the gen
eral currency Of the world through general
cooperation and agreement,
it is is obvious that the United States
will not be in position to gain a hearing
in favor of such an arrangement so long as
we are willing to continue our attempt to
accomplish the result single handed. The
in business circles among our
own people that our government cannot
make its fiat equivalent to intrinsic value.
nor keep inferior money on parity with
superior money by its own independent ef.
forts, has resulted in such lack of conf