Mississippi leader. (Jackson, Miss.) 1892-1895, 1893-07-18

for debt, was advisedly and considerably
passed, We NEED only examine the contempt.
rancous legislation on the same kindred ques.
tions. The provisions of the act OF 1873 itself
arc too plain to have been misunderstood; and
TO have made them different would have been a
marked departure from the policy Of the gov.
ernmeut as fixed By that coinage act OF Feb.
ruary n, 1883 which decreased the quantity Of
metal in the subsidiary silver coins ana
limited their legal tender character to pay
ments Of Is and less. Hence, the act Of 1879,
dropping the further mention Of the silver dol.
lar from the coinage OF the United States, ex.
pressly confines the use Of all silver coins Of
the United States 10 payments not exceeding IS
in amount The act OF juno 20, 1874, was strict
ly In consonance with that of 1873. It had been
our previous policy since the foundation OF the
government 70 make foreign coins, OF both gold
and silver, receivable for public dues, and also
between individuals. The values fixed by law
for many Of these coins, especially those of
silver, were already beyond their intrinsic
worth, and silver gave signs Of continued de-
crease. Hence the act Of 1874 declared, first,
that all foreign coins should cease TO be q
legal tender; second, that the gold coins Of the
United States, when not reduced below the
weight Of tolerance, should be legal tender
for sll debts; third, that tho silver coins OF
the United States" dnoluding, OF course. the
nominal value for any amount not excee ding
s." and fourth, that the minor coins (the
nickels and copper cents shall be a legal
tender for only 25 C ents.
Debased Currency.
ut was obvious to the least discerning fnan
ciers Of the country that the act Of 1873 would
eventually bring about not a double standard
as pretended by Its friends, but single stand.
ard of deprecated silver. Hence, from the begin
ming these dollars were received with great dis
trust But congress, having entered upon this
schema a determined tn use
the power of the government to force the cir.
culation upon an unwilling public. Tho asso
ciated banks of New York, Boston and Phila
delphia adopt ed rules foroidding the use Of
these dollars and also the silver certificates IN
clearing bala noes among themselves. 1t really
seems that when both debtor and creditor agree
not to use a currency thought to be injurious TO
the public welfare they ought to be allowed to
reject 1t in their own transactions without the
fear OF punishment The national banks, how.
over, held their charters from the government,
and the discipline Of congress was soon brought
| to bear.
"It was decrced that no national bank should
| belong to clearing house that refused silver
| certificates in payment OF balances. When
bank charters had to be renewed the renewal
was conditioned on the receipt and circulation
ofa currency already bad and getting worse
day by day. The government now entered the
neld as a common carrier and transported,
without charge, this unacceptable currency TO
any part Of the country that would deposit gold
| for 1t in the subtreasuries. Thus the govern.
mentsowed the wind, and now, by the Just law
| OF retribution, rcaps the whirlwind- The pub
| lie demands that gold back and the government
must pay it or embark at once on the treacher-
| Gus sea Of deprecated currency.
When pains and penalties failed to coerce
| the banks the persuasion OF self-interest was
| resortod to and they were offered the bribe
| that silver certificates received by them might
a ted In han q
| when the banks remained oodurate agains,
| threats and seduction it was thought the zen
cral public might surrender to the temptation
OF small notes, and TO that end, IN 1886, IL was
! enacted that the secretary of the treasury
should thereafter issue silver certificates in
denominations OF 81, Sc and g. and the larger
certificates already issued under the act of 1877
| might be exchanged for the smaller denomina
| tons
| The Wiser Course.
| "If greater expansion Of the currency were
| really required by the legitimate demands oi
| business II might have been secured, 1t seems
| to me, by inducing an increase of tho national
bank notes. currency secured by United
| States bonds, payable in gold and always worth
premium Instead of this, the contrary policy
vas most persistentiy pursued, resulting In a
| decrease OF speoie-pAytug bank notes from
f35s 900 900 In 1883 to t72 go ooe in 1892 While
| this better currency was being driven out by
unfriendly legislation, the channels Of business
were being gorged by an issue Of 4le, 900 900 OF
silver dollars, s35, 900 900 Of silver certicat tes
and finally, under the act Of 1890, by the issue
| OF sl54, 100000 more Of treasury notes in the
purchase Of silver bullion at an enormous loss
| to the people and 10 the government.
"Of the 5000, oeO or 100000 gold with which
we began IN 1873 none can be found in circula.
ton What has not gone to foreign countries,
enjoying the blessings Of a single standard,
has been boarded, not to reappear until the
holders have some guarantee If loaned 1t will
be returned in money equally good The gold
certificates not aiready forced upon
the government for redemption are no
longer seen The United States notes,
for tho redemption OF which the el0o,-
100000 gold reserve Is supposed to be held by
the government, constitute tho best security Of
the national banks and henoe tho greenback is
rapidly disappearing. The national bank notes
are necessarily held, II possible, by the banks
issuing them in fear that in the extremity Of
distress their redemption may soon be asked IN
gold. Nothing is left but silver certificates and
treasury notes The banks are unable to main.
tain their lawful reserves, hence they can give
no relief to suffering community. Tho gov
ernment treasury Is depleted of its surplus.
Government expenditures exceed govornment
receipts Extrsvagant appropriate made
upon silver basis must now be paid in q me.
dium Of value. The eedless promise to pay
has now run its brief course, and its perform
AuCc CoucS Win Suucflug ana tears.
Remedies Suggested.
What now is the remedy
81. The customs duties should hereafter be
paid in gold alone
"2 The silver bullion in the government
vaults should at once be sold for cash in gold
and the proceeds covered into the treasury.
"3 That per cent gold bonds to the amount
OF tSoO, 600, 900 should be promptly sold and the
proceeds transferred TO the treasury.
~ A day should be fxed, not later than JAN
uary !, 1893, for the redemption and payment
in gold coin Of all circula ting notes Of every de-
scrtption hitherto issued by the government
70. At least half Of the silver dollars issued
under the acts of 1878 and 1890 should be sold
IS bullion and the remainder minted into sub
sfdiary silver coins, and made legal tender only
in'payment OF $40 or less.
&c. Provisions should be made for the use OF
the $500, 900 900 of gold bonds as basis for
banking, making the provisions as liberal as
possible consistent with safety, but under gov
ernment supervision.
q. The basis of national banking should
be enlarged as to permit the issue of circulating
notes on the deposit Of other than United
States bonds, the solvency of such bonds to be
passed on by responsible government ofnciais.
"s. All bank issues to be redeemed in gold
coin on demand
"s All the foreign gold coins should be made
legal tender for debt and receivable for gov
ernmont dues at their value as fixed bG aw
10 Previous to the LIST of January, 1893 the
surplus funds Of the treasury either from loans
or collections, TO be placed with the banks in
such sections OF the country and in such he
counts as may be determined by the secretary.
Not Poverty But Distrust.
at Is not poverty but distrust that atiicts
this country. Our fabric OF finance must be
torn down and built anew. 1t was conceived in