The sun., 1893-06-14
PAYING GOLD FOR SILVER.
THE SHERMAN ACT DEPLETBs THH
GOLD IN THE TREASURY

l9ccrStnFN NhrHbtc ShO"p thHt Up " bhto
s47.A75.i1s tn Gold Has Been Paid out
for silver Bullion. Purchased Under That
Aet-Tks Government Loses Sto.sss $50
on tho Depreciation In tho Price OF Silver.
WASHINGTON. June ia representative OF
the United Press in conversation to- day with
Secretary Carlisle suggested to him that there
was lack OF precise Information touching the
amount OF silver coined up to tho present
time. and also as to the manner in which the
present operation Of the Treasury under the
so-called Sherman act results in the payment
Of gold in the purchase OF silver bullion. In
reply to these suggestions Secretary Carlisle
said:
The operations OF tho United States Mint
commenced In 1892 and from that time to
1873. period OF eighty-one years. tho total
amount Of silver dollars coined was 8045. 1898.
In 1873 the coinage was stopped by act OF
Congress. but In 1873 It was resumed under
the so-called Bland d-Allison act. BY the terms
OF which the Secretary OF tho Treasury was
directed to purchase and coin into standard
silver dollars. OF 512h grains each. not less
than S2,0o0.000 worth nor more than $4,000.
600 worth Of silver bullion each month. and
between the date OF act and the 14th OF July.
1880. period Of twelve years, there was coin
ed S31S 1G6, 703. In addition to this there
has Leen coined from trade dollars $5.O7S-
472. md from the seigniorage OF bullion
purchased and coined under tho act Of July IL.
1880. the sum OF S8.841. 100. making in the ag.
grcgate SSSD. D.SS6.374 in full legal tender silver
money issued by the Government since 1874
OF this amount only S5S.018.OlO were in actual
circulation on the first day OF tho present
month, the remainder being held in tho Treas
ury as part OF the assets Of the Government, OF
being represented by outstanding certificates
The act OF July IA. 1890 required tho seo-
rotary Of the Treasury to purchase 4.5O0. 900
fine ounces Of silver bullion each month. and
1t provided that he should continue the coin
age OF silver dollars at tho rato OF 100000
per M onth until the 1st day OF July. 1891: and
under this act there have been coined $780,
40S.461. which makes tho total coinage Of
silver dollars. under all acts since 1873 $419.
214.s35. or moro than fifty times as much 40
was coined during previous period OF eighty
one years.
In addition to tho silver bullion purchased
by the Government since 1873. and coined as
above stated. the Secretary OF the Treasury has
purchased. under the act OF July IA. 1850. and
now holds In the vaults OF the Treasury, un.
coined. 124.282.53 fine ounces OF silver bul.
lion. which cost tho people Of the United States
4.200.020. and is worth to-day at the mar.
kct price Of silver $1O3, All 1886. thus showing
loss OF S10.SSS.5 $50 By the terms Of the act the
Secretary was required to pay for all silver bul.
lion purchased by the issue OF new United
states Treasury notes. payable in coin. and IL
provided that upon demand Of tho holder Of any
such notes they should be redeemed in gold or
silver coin. at the discretion Of the Secretary.
1t being in tho language OF the act. tho es.
tablished policy Of the United States to main.
tain the two metals on parity with each other
upon tho present legal ratio, or ouch ratio 90
may bs provided by law In the execution Of
this declared policy Of Congress 1t Is tho duty
OF tho Secretary Of the Treasury. whom the
necessity arises. to exercise all the powers
conferred upon him by law In order to keep
the Govern ent In a condition to redeem its
obligations in such coin as may be demanded.
and to prevent the depreciation OF either 40
compared with the other.
Tho records OF the Treasury Department.
show that during the eleven months beginning
May 81. 1892. and ending May ]. 1893 the
coin Treasury notes issued for the purchase Of
silver bullion. under the act Of July IA, 1890,
amounted to s49.9e1. 1884, and that during the
same period tho amount Of such notes paid In
gold was S47.745.173. 1t thus appears that all
the silver bullion purchased during that times
except S2216,011 worth, was paid for in gold.
while tho bullion itself is stored In the vaults OF
the Treasury. and can neither be sold nor used
for the payment Of any kind of obligation. How
long the Government shall thus be compelled
to purchase silver bullion and increase the
public debt by issuing coin obligations in pay.
ment for it Is question which Congress alone
can answer. 1t is evident that II this policy 10
continued. and the Secretary OF the Treasury
shall be compelled to issue bonds or otherwise
increase the interest-bearing public debt, 1t
will bo done for tho purpose Of procuring gold
with which to pay for silver bullion purchased
under the act referred to-"
The financial condition OF the country. 90
viewed from a Treasury standpoint shows
little improvement Bank and commercial
failures are fewer: Europe 10 buying our grain
in greater quantities: gold shipments have
ceased. at least for the present: confidence is
being restored. and money is not 80 tight
Treasury net gold has increased from $780,.
100000 to sol 100000. and tho demand for
small notes In the West will have tho effect to
further increase tho Treasury gold The rate
Of exchange 10 sufficiently high to warrant tho
shipment OF gold abroad. but the fact that
commercial paper 10 for sale In London has Q
deterrent effect. There ia general feeling
that tho worst is passed. the weaker financial
institutions and business firms having sue.
cumbed. while those that passed through SO
far unscathed are tho stronger for having
tl atN