The herald., 1893-07-03

The country is being drained of the re-
naming gold with alarming rapidity.
It only remains now briefly to state
the character of the silver acts
OF 1878 and 1890 and furnish you reasons
for believing the overthrow of public
confidence and the present depression
In business are the legitimate conse-
quencee OF those acts. The natural or
normal results of this legislation would
probably have followed much sooner
but for the many abundant crops OF
this country and the numerous failures
in that respect abroad. Under the act
of 1878 the government purchased 29l,-
292. .019 ounces of fine silver at cost of
$308, ,l99, ,262, and coined it into silver
dollars to the amount OF $378, 1876, ,793. A
profit of nearly $40 ZOO, 900 was made by
stamping falsehood on the coins. and
covered into the treasury as so much
profit. Under the act OF 1890, the gov
ernment, up to June L, 1898, purchased
ll6, ,361 1857 ounces. Under the act of
1880 there were coined addi-
ional dollars to the amount OF
t36, ,087 ,O40. Adding to these amounts
the recoinage of trade dollars
into standard dollars, we had on June
/, 1892, coined silver dollars amounting
to $4l9, 1872 ,305. If we take the market
price of silver June 1et, S3 cents per
ounce, the loss on this bullion so pur-
chased by the government up to that
day was $S3,5l8, 1928. On June 26, 1898,
bar silver was worth only 73 cents per
ounce, entailing upon the government
an additional loss of $44,5S3, ,432 in less
than month.
II 10 obvious to the least discerning
financiers of the country that the act Of
1873 would eventually bring about,
without doubt, standard of decredited
silver: hence from the beginning these
dollars were received with great distrust,
but congress having entered upon the
strange scheme of expansion, deter
mined to use the power of the govern.
ment to force it's circulation upon the
unwilling public. 1t decreed that no
national bank should belong to clear
ing house that refused silver certificates
in the payment of balances. When
bank charters had to be renewed condi-
toned 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 the unaccept-
able currency to any part of the country
that would deposit gold for it in the
sub-treasuries. Thus the government
eowed the wind and now, by the Just
law of retribution, reaps the whirl-
wind. The public demands that gold
back and the government must
pay 1t or embark at once on treacherous
sea of deprecated currency. When pains
and penalties failed to coerce banks, the
persuasion of self-interest was resorted
to and they we're offered the bribe that
silver certificates received by them
might be counted in their reserve.
Finally, when the banks remained OBJ
durate against the exsction, it was
thought the general public might sur
render to the temptation of small notes,
and to that end in 1886 it was enacted
that the secretary of the treasury should
hereafter iEeue silver certificates in de.
of one, two and five dollars,
and that the larger certificates already
issued under the act of 1873 might be
for the smaller denomina-
tione.
If q greater expansion of the currency
was really required by the legitimate
demands of business it might have been
it seems to me, by inducing
an increase in national bank notes
currency secured by United States
bonds payable in gold coin and always
worth premium. Instead of this the
contrary policy was most persistently
pursued, resulting in decrease in spe-
cie-paying bank notes from $3.50, ,000, 900
in 1883 to 1882, 600, 900 in 1892. While
this better currency was being driven,
out by unfriendly legislation, the chan
nels of business were being gorged by
the issue of $40, 100000 silver dollars,
1886 900, 600 silver certificates and gen.
orally under the act of 1890 by the issue
Of 1854, ,0Q0, 900 more OF treasury notes in
the purchase of silver bullion at an
enormous loss to the people and the
government. llQI
OF tho $500 900 900 or 5000. 200, 900 in
gold with which we began in 1876, none
can now be found in circulation. What
has not gone to foreign countries enjoy
ing the blessing of 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
the redemption of which $100, 900, 900 re-
serve is supposed to be held by the
constitute the best security
Oi uhbIUuol Doukn, uhO AchcO thO 6Iont
stack is rapidly disappearing. National
banks notes are necessarily held, If pos
sible, by the banks issuing them, in the
fear that In an extremity of distress
their redemption may soon be asked in
gold. With nothing left but silver GER
tificates and treasury notes, the banks
are unable to maintain lawful reserve,
hence they can give no relief to the suf-
fering community.
The government treasury has been
depleted of its surplus. Government
expenditures exceed government re-
ceipts extravagant appropriation made
upon silver basis must now be paid in
q medium of value. The needless prom
ise to pay has now run its brief course,
and its performance comes with suffer
ing and tears.
What now 10 the remedy?
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-Three per cent gold bonds to
the amount of $500, 100000 should be
promptly sold and the proceeds trans-
ferred to the treasury.
Fourth-A day should be fixed, not
later than January l, 1898, for the re-
dsmption and payment, in gold coin, of
all circulating notes of any kind and
every description heretofore issued by
the government.
Fifth-At least half the silver dollars