The record-union., 1893-07-03


many abundant crops of this country and
numerous failures in that respect abroad.
u nder the Act of 1873 the Government
| purchased 29l, 292 ,0l0 ounces of fine silver
at cost of $500, 1876, ,262 and coined it into
| silver dollars to the amount of S37S, 1876, 1913,
profit of nearly $40, 900 made by
| stamping falsehood on coins covered into
the Treasury as so much profit. Under the
Act OF 1890 the Government up to June l,
1893, purchased SI45,35l, ,S57, and under
the Injunction continued coinage for the
| year. Under the Act of 1890 there was
| coined additional dollars to the amount
of S36,OS7, ,0i0. Adding to these amounts
the recoinage of trade dollars into stand
ard dollars, we had on June l, l893, coined
| silver dollars amounting to S4l9, ,332, ,305.
If we take the market price of silver on
June 1st, 50 cents per ounce, the loss on
this bullion so purchased by the Govern
| ment on that day was S83, ,5lS, ,62S. On
| June 26, 1893, bar silver was worth only
| 13 cents per ounce, entailing upon the
| Government an additional loss of S44,-
$50, 432 in less than month.
1T was obvious to the least discerning
of financiers of the country that the Act
OF 1875 would eventually bring about the
| doubtful standard of decredited silver,
hence the beginning of these dollars was
received with great distrust, but Congress
having entered upon strange scheme of
expansion, determined the power of the
! Government to force its circulation upon
an unwilling public. 1t decreed that no
national bank should belong to the clear
ing house that refused silver certificates
in payment of balances. When bank
| charters had to be renewed, they were
conditioned on the receipt and circulation
OF currency already bad and getting
worse day by day. The Government
entered the field as a common carrier
and transported without charge unac-
| ceptable currency to any part of the
country that would deposit gold for it in
the sub-treasuries. The Government
sowed to the wind, and now by the Just
| law of retribution reaps a whirlwind.
| The public demands that gold back. and
the Government must pay it or embark
at once on treacherous sea of depreci-
ated currency.
when pains and penalties failed to
coerce the banks, persuasion and self
interest was resorted to, and they offered
a bribe that the silver certificates received
| by them must be counted in the reserves.
| Finally, when the banks remained OBJ
durate against the exaction. it was
thought the general public might sur
render to the temptation of small notes,
and to that end, in 1856, it was enacted
that the Secretary of the Treasury should
hereafter issue silver certificates in de-
nominations of one, two and five dollars,
and the larger certificates already
issued under the Act of 1878 might be ex-
changed for smaller denominations.
If greater expansion of the currency
was really required by the legitimate de-
mands OF business it might have been Sc
cured, 1t seems to me, by inducing an in
crease of, national bank notes. Currency
secured by United States bonds is paya-
| bIe in gold, and is always worth a pre-
MUM. Instead Of this, contrary policy
was pursued, resulting in a decrease of
specie-paying bank notes from S356, ,OO0.-
900 in 1888 to SlS2, 900, 900 in 1892.
while this better currency was being
driven out by unfriendly legislation. the
channels of business were being gorped
by the issue of 4l0,O00000 silver dollars.
335, ,000, 900 Of silver certificates. and gem
orally, under the Act Of 1890, by as issue
OF l54, ,0OO,00O more of treasury notes in
| the purchase of silver bullion at an
enormous loss to the people and Govern
ment.
"Of the five or six hundred millions OF
gold with which we began in 1878, none
can now be found in circulation. What
has not gone to foreign countries enjoy
ing the blessing of a single standard, has
| been boarded, not to appear until its
holders have some guarantee that if
loaned it will be returned in money
equally good. Gold certificates not AL
ready forced upon the Government for
redemption, of which hundred million
dollar reserve is supposed to be held by
the Govermennt, constitute the best Sc
curity of national banks, and hence the
great sack is rapidly disappearing. Ma
tional bank notes are necessarily held. if
possible, by banks issuing them, in fear
in the extremity of their distress their
redemption may soon be asked in gold.
and nothing be left but silver certificates
and treasury notes.
The banks are unable to maintain the
lawful reserve, hence they can give no
relief to suffering community. The
Government Treasury is depleted of its
surplus. The Government expenditures
exceed Government receipts. Fxtrava-
giant appropriations made upon a silver
basis must now be paid in the medium of
value. The needless promise to pav has
now run its brief course, and its per
formance comes with suffering and tears.
What now is the remedy for it? First.
custom duties should hereafter be paid in
gold alone; second, the silver bullion in
the Government vaults should at once be
sold for cash in gold and the proceeds
covered into the Treasury: third. 3 per
cent. gold bonds TO the amount of $500
600 should be promptly sold and the
proceeds transferred to the Treasury:
fourth, day should be fixed, not later
than January l, 1888, for the redemption
and payment in gold coin of all circulat-
ing notes of any kind and every descrip-
ton heretofore issued by the Govern
ment; fifth. at least half the silver dollars
issued under the Acts of 1878 and lSq0
should be sold as bullion and the re-
mainder minted into subsidiary silver
coins and be made legal tenders
only on payment of ten dollars or
less; sixth, provision should be made for
the use of $500, 100000 of gold bonds as a
basis for banking, making the provisions
as liberal as possible, consistent with
safety, but under Government super
vision; seventh, the basis of national
Z L., ~. 1 l.