The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-11
A PLEA FOR SILVER.
PRESIDENT 81. JOHN or THE MER-
CAMILLE BANK CHAMPIONS III.
The Sherman Law, He Asserts, Has Yur-
nished Us si4O.OOO.O 900 Of Lawful
Money as Good Here as Gold.

the Mercantile National Bank. mad this
TO say yesterday at the meeting Of the
Chamber Of Commerce. called TO consider
the financial situation. says a Northern
exchange OF July It'll:
Repeal the Sherman law, stop buying
silver" And yet. If Shakespeare is an
authority. There is some soul OF good
ness in things evil" This so-called sher-
mar act requires a monthly absorption OF
a fixed amount Of silver bullion al the
market price under the provision that
this bullion is not to be emitted from
the Treasury except in legal tender silver
coin. this coin valuing silver at Sl.9 per
fine ounce. our Treasury hoard Of silver,
therefore, were the act appreciated, would
be without influence upon the worlds
market price for silver until that price
exceeds sl.29 per ounce. This monthly abb
sorption of bullion serves TO create an
issue Of United States legal tender notes
at the market price OF the bullion when
absorbed. Manifestly, then. the lower
the price OF silver the smaller the sum
OF notes put out. At the present price Of
silver the sun of notes thus issued will
barely exceed 100000 a month, or $685.
100000 in a year. The present Secretary Of
the Treasury. adopting his predecessors
Interpretation OF the statute. determines
that these notes are redeem0ble on de-
mand invariably I'm gold. The urgency Of
the need Of the repeal OF the act Is there
fore to be determined by the measure
of the ability of the United States to
provide the gold with which to redeem
on demand an annual addition 10 $500
40 A.. - 100 non 80 tt~ faVaI tanIar pataa
Mr.. friend. Mr.. Clanin. has attributed 20
this so-called Sherman bill our recent ex-
ports of S6l. 900, coo gold. | think this gold
expcrt IS as Independent. I'm fact. Of our
silver legislation as OF our internal reve-
nue. LEGISLATION. We had a vast excess of
imports Of merchandise 10 pay for. our
debt 10 Europe matured az "A time when
the Australian bank failures were begin
ming 70 be mysteriOusly predicted In En-
glish banking circles; when Argentine in
terest payments due under the guaranty
Of English bankers were I'm default
when the Australian syndicate 81
bankers was accommodating gold
at a premium. as is well known.
Under such conditions prevailing with
our creditors. they eXacted payment
instead Of reinvesting theft moneys here.
II is now entirely likely that unless un-
foreseen events transpire 10 prohibit IL. n
return flow of gold TO the United states
I'm payment for our surplus Of cereals
meats and cotton will begin ere long. Let
us remember that the United States ex-
ported nearly S70.000.000 Of gold during the
year ending June 30, 1891. but afterward
%reimported $3S,O0O,O0O gold In four months
ending with January ], 1892. The Sher-
man law was then I'm operation, turning
out a greater sum Of legal tender notes at
that time than now, because OF a higher
price than now for silver.
Nv friend has instanced against us the
experience of the Bank Of France. We
thank him for the object lesson which OF
all others we would Use. He remarks
upon the large increase Of the gold re-
serves Of that bank during the last year.
Please note that II Is TO bimetallic France
that the natural flow Of gold is most com
monty observed. France has IN circula-
ton upward Of 500, 000.0 900 OF legal tender
silver, her coin valuing IL at 1913 per
ounce. The Bank of France has $4,000.
900 Of this silver coin as a share Of her
reserve against 5000 600 OF outstanding
legal tender notes. She exercises her OPP
tion freely TO redeem these notes I'm silver.
Our policy instead has been to permit
the note holder 10 determine the coin in
which our notes shall be redeemed. This
IS the maladministrati0n put upon the
so-called Sherman law. The Secretary
who first administered the act gave a
provision OF the statute this interpreta-
ton. The Interpretation governs his sue
cessor.
FRANCE " HER FINANCIAL POLICY.
The Bank Of France. however, occasions
no alarm on the Bourse Of France by her
every day election TO redeem In silver
or gold. at the bank's convenience. Her
notes are never at a dicount. but In Feb
ruary last commanded a premium over
gold. The bank can at any time give
them a premium value over gold by re-
deeming temporarily In geld only and
holding on to every single note that
m IA. The popular demand for the
convenience OF paper money In France
would soon put upon those notes a premi-
um over gold, even her bankers Ignoring
the fact that any moment she may again
exercise her option TO redeem I'm silver.
Verify we may learn Of France. Let us
remember that her population Is showing
no Increase at about 100000. while the
population OF the United States IL in
ereasing at the rate Of nearly 10000 o a
year, or 100000 in ten years. and occu-
plying a territory seventeen times the area
Of France.
As a restoration OF popular confidence
by the substitution OF bank notes for
legal tender notes OF the United States.
please note an everyday experience Of
this week as 10 the notes OF the com
blned banks OF Philadelphia, otherwise
called their loan certificates, and note
how these banks themselves value these
very best OF bank notes in comparison
with these same despised Issues OF the
United States created automatically By
the sherman bill. Banks I'm Philadelphia
are paying five dollars per $1,000 for drafts
on New York, paying for same with their
loan certificates rather than part win
United States notes 10 ship 10 New YORK
I'm settlement at a cost Of Twenty-Five
cents per $1,000; this preference OF theirs
for United States notes over their own
combined bank notes amounting 10 forty
times the cost OF a shipment 10 New
York.
This sherman bill, so-called. has been
s,iematized a 'makeshift." II is a make
sblr, as a Ratchet is a makeshitt Tor an
axe in telling saplings. 1t was enacteu
as a COMPROMISE. Its repeal viii end all
compromise. for no better nor any hair
so acceptable can be offered as It's SUD
stitute. Apart from the unfounded alarm
which has been worked up against IL
the real operation OF the statute has been
wholly beneficial. II has furnished US
sA 600 900 OF lawful money as good az
home as gold, and the more acceptaple
that a portion OF our gold Is from time
o-,ondaI WARD