The Mt. Sterling advocate., 1893-08-08

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that statute, were regarded by those
interested in silver production as a
certain guarantee of its increase In
price. The result, however has, been
entirely different, for Immediately
following a spasmodic and slight
rise the price of silver began to fall
after the passage of the act, and has
since reached the lowest point ever
known. This disappointing result
has led to renewed and persistent
effort in the direction of free silver
coinage.
Meanwhile, not only are the evil
effects of the operation of the pres
ent law constantly accumlating, but
the result to which its execution
must inevitably lead lis becoming
palpable to all who give the least
heed to financial subjects,
This law provides, that in payment
for the 100000 ounces of silver
bullion which the Secretary of the
Treasury is commanded to purchase
monthly, there shall be- issued
Treasury notes, redeemable on de-
mand in gold or silver coin, at the
discretion of the Secretary of the
Treasury, and that said notes may be
re-issued. 1t is, however, declared
in the act to be "the established
policy of the United States to main
tain the two metals on parity with
each other on the present legal ratio
or such ratio as may be provided by
| law"
This declaration so controls the
action of the Secretary of the Treas
ury as to prevent his exercising the
discretion nominally vested in him
if by such action the parity between
gold and silver may be disturbed
Manifestly a refusal by the Secreta-
ry to pay these Treasury notes in
gold, If demanded, would necessarily
result in their discredit and depre-
citation as obligations payable only
in silver, and would destroy the
parity between the two metals by
establishing discrimination in
favor of gold. .
Up to July 15, 1893, these notes had
been issued in payment of silver
bullion purchases to the amount OF
more than $147,O00,O0O. While all
but a very small quantity of this
bullion remains nncoined and with
out usefulness in the Treasury
many of the notes given in its pur-
chase have been paid in gold. This
is illustrated by the statement that
between the first day of July, 1892
and the fifteenth day of July, 1893
the notes of this kind issued In pay
ment for silver bullion amounted to
a little more than $54,OOO,OOO, and
that during the same period about
$49, 100000 We're paid by the Treasury
in gold for the redemption of such
notes.
The policy necessarily adopted
for paying these notes in gold has
not spared the gold reserve of $780,
100000 long ago set aside by the
Government for the redemption of
other notes, for this fund has already
been subjected to the payment of
new obligations amounting to about
$15,000,O00 on account of silver pur-
chases, and has, as consequence, 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 appreciative nations
to add it to their stock. That the
opportunity we have offered has not
been neglected is shown by the large
amounts of gold which have been
recently drawn from our Treasury
and exported to increase the flnan-
cial strength of foreign nations
The excess of exports of gold over
our imports for the year ending June
30, 1898, amounted to more than $S7,-
100000. Between the first day of
July, 1890, and the 10Th day of July
1898, the gold coin and bullion in our
Treasury decreased more than $780,
100000, while during the same period
the silver coin and bullion in the
Treasury increased more than $l47,-
100000. Unless Government bonds
are to be constantly issued and sold
to replenish our exhausted gold,
only TO be again exhausted, it Is
apparent that the operation of the
silver purchase law now in force,
leads in the direction of the entire
substitution of silver for the gold in
the Government Treasury, and that
this must be followed by the pay
ment of all Government obligations
in deprecated silver.
At this stage gold and silver must
part company and the Government
must fail In its established policy to
maintain the two metals on a parity
with each other. Given over to the