The herald., 1893-06-25
BLAND VS.. CARLISLE.

Secretary Cariis1e's Letter on 5ilvor
Answered.
Mr.. r. B. Bland publishes in the st.
Louis Republic long letter in reply to
Secretary Carlisle's recent letter about
the operation OF the Sherman silver pur-
chase act. From this We make the fol-
lowing extract
Secretary Carlisle, in his statement
published in the Republic of the 14th
inst, says: 1.-The treasury has purchased
under act Of July IA, 1890 (Sherman
law, 124 292, ,532 fine ounces of silver
bullion, which cost the people of the
United States $114, ,229, ,920, and is worth
today at the market price OF silver
$l03, All 1856, thus showing a loss OF
S10,S8S, ,534."
With due respect to Mr.. Carlisle
wish to say that he is entirely too
modest in his estimated losses. If this
silver business must continue to be
treated as so much dead waste then the
loss is equal to the whole amount pur-
chased. But if, on the other hand, the
bullion shall be coined as commanded
By law and the coin used to redeem the
notes, then we lose nothing, but, on the
contrary, we have gained and will con-
tinue to gain about 50,000,000 annu-
ally in our circulation. To stop this
gain and substitute nothing for it means
to cut off $50, 10000 annually, and thus
make q disastrous contraction OF our
money. OF course, | am describing q
proper execution OF the law. AZ it is
now executed it is farce and fraud.
1t 10 just such thing as Mr.. Sherman
intended it to be. In round numbers
we have of this bullion in the treasury,
as stated by the secretary, 124 000,0
ounces. This will coin over 16l ,000,000
silver dollars. The bullion cost
$114, 900, 900, so as matter of fact, If the
bullion was coined and utilized, we
would gain about $47 100000 on these
purchaaes-about four times the est-
mated loss. If the law was in the hands
of the friends of silver it might be exc
cutsd 90 as to do benefcent work.
Executed in the interest of gold mono
metallism, it is of little effect, except to
hold as q lever to prevent free coinage.
In the secretary's statement, it is said
that, while from 1892 to 1878 we had
free coinage of silver, yet we coined in
these 81 years only about 100000 OF
silver dollars. 1t will be remembered
that during that time, or till 1862, ali
our silver coins, the dollar and it's frac-
tions-the halves, quarters, dimes and
half dimes-were full weighted and full
legal tender. They had the benefit of
free coinage and full tender. SO that
our silver coinage consisted almost ex-
clusively OF the lesser denominations.
Besides; many of the foreign coirs, espe-
cially the Spanish milled dollar, were q
legal tender. Again, in the latter part
OF that period, especially after the
French law OF 803 got into full play, our
silver dollars were largely exported, for
the reason that they were above par at
our ratio. Because they were immedi-
ately exported the coinage practically
ceased--indeed our fractional coins were
also exported to great extent for the
same reason. This caused the law of
1852 reducing the fractional coins and
limiting their tender, 30 as to prevent
export.
That we have coined more silver under
our system of limited coinage than would
be coined under the free coinage system
is easily explained. II all silver bullion
could be taken to the mints and coined
Immediately without cost into legal
tender money the bullion would at once
be worth what it would coin and pass
current in shape of bullion. Hence, the
necessity of coming would be minimized.
But now bullion silver has no such priv
ilege. 1t cannot be coined except on
government account. Hence, to be
available as money, it must be coined
into legal tender pieces. Gold has free
access to our mints, 90 that gold bullion
is worth in the market just what it will
coin and passes current for thai value.
The consequence is we stamp into bars
much of our gold instead OF coming it..
Nearly so per cent OF the gold that is
coined is struck into $50 pieces, because
these pieces are most convenient for
deposit in bank vaults and for export.
They are not for circulation but as G
basis for paper certificates. With free
coinage OF silver the same thing would
take place. The bullion would be
stamped and held for redemption
purposes. No money can be better than
the gold certificate or the silver certit-
cate, worth dollar for dollar in coin or
bullion held for redemption. So far as
selling bonds to get gold to redeem the
notes issued in purchase of silver bullion
is concerned, no one as far as | am ad-
vised ever contended that the Sherman
law authorized anything OF the kind. 1t
is not in the law.
There is no such authority. 1t is con-
tended that there is no law authorizing
the issue of bonds for the redemption of
the green back, but that law has been
virtually repealed. Besides, the re iemD-
tion law made no specific provision for