The herald., 1893-08-09

to which Its execution must inevitabn
lead is becoming palpable to all VIII
give the least heed to financial subjects
This law provides that in payment foI
the 4,500,000 ounces of silver bullioI
which the secretary of the treasury il
commanded to purchase monthly, Their
shall be issued treasury notes redeema
BILE on demand in gold or silver coin, a
the discretion of the secretary OF thu
treasury, and that said notes may be re
issued. 1t is, however, declared in thl
act to be "the established policy of tn
United States to maintain the two met
ala upon parity with each other upoi
the present legal ratio, or such ratio al
may be provided by law" This declar
alton so controls the action of the sec
retary of the treasury as to prevent hit
exercising the discretion nominally
vested in him, If by such action the
parity between gold and silver may be
disturbed. Manifestly the refusal by
the secretary to pay these treasury notes
in gold, If demanded, would necessarily
result in their discredit and deprecia.
tion, as obligations payable only in sill
yer, and would destroy the parity be-
tween the two metals by establishing
discrimination in favor of gold.
UP to the fifteenth day of July, 1898,
these notes had been issued in payment
of silver bullion purchased to the
amount of more than s147 900, 600.
While all but very small quantity of
this bullion remains uncoined and with
out usefulness in the treasury, many of
the notes given in its purchase have
been paid in gold. This is illustrated
by the statement that between the first
day of MAY, 1892, and the fifteenth day
of July, 1898, the notes of this kind is
sued in payment for silver bullion,
amounted to little more than $54, ,O00,- :
600. and that during the same period
about $49, 100000 was paid by the treas
ury in gold for the redemption of such
notes. The policy necessarily adopted
OF paying these notes in gold, has not
spared the gold reserve of 500, ,0O0, 900
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 $3.50, 100000 on account of sil-
yer purchases and has as q consequence,
for the first time since it's 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 re-
Gently drawn from our treasury and ex-
ported to increase the financial strength
of foreign nations.
The excess OF the export OF gold over
its import for the year ending June 80,
1893, amounted to more than $87, ,500,-
600. Between the first day of July,
1890, and the 18th day of July, 1898, the
gold coin and bullion in our treasury
decreased more than $132 ,000, 900. while
during the same period the silver coin
and bullion in the treasury increased
more than STAT .000, 600. Unless gov
ernment bonds are to be constantly
issued and sold to replenish our ex.
bausted gold. only to be again exhaust.
ed, it is apparent that the operation OF
the silver purchase law now iii force
leads in the direction of the entire SUBJ
etitution OF silver for gold in the govern
ment treasury, and this must be fol-
lowed by the payment of all government
obligations in deprecated silver.
At this stage gold and silver must part
company, and the government must fail
in it's established policy to maintain the
two metals on parity with each other.
Given over to the exclusive use of cur
rency greatly depreciated according to
the standard of the commercial world, we
could 40 longer claim place among
nations OF the first order, nor could our
government claim the performance of
its obligations 30 far as such obligation
has been imposed upon it to provide for
thu nf tha ronnlo tho hou ut nd 90 ook
money.
If, as many Of ite friends claim, silver
ought to occupy a larger place in our
currency and the currency of the world,
through general international co-opera-
tion and agreement, it is obvious that
the United States will not be in posi-
ton to gain a hearing in favor of such
an arrangement as long as we are will
ing to continue our attempt to accom-
plish the result single-handed.
The knowledge in business circles,
among our own people, that our govern
ment cannot make its faith equivalent
to intrinsic value, nor keep inferior
money on parity with superior money,
by its own independent efforts, has re-
suited in such lack OF confidence at
home in the stability of currency values
that capital refuses its aid to new enter
prises, while millions are actually with
drawn from the channels of trade and
commerce to become idle and unpro-
ductive in the hands OF the timid own
ers. Foreign investors, equally alert,
not only decline to purchase American
securities, but make haste to sacrifice
those which they already have.
1t does not meet the situation to cay
the apprehension in regard to the fu-
ture of our finances is groundless and
that there is no reason for the lack Of
confidence in the purposes or power of
the government in the premises. The
very existence of this apprehension and
lack of confidence, however caused, iE
4 menace which ought not for moment
to be disregsrded.
Possibly if the undertaking we have
n hand were the maintenance of q
,peciic known quantity OF silver at
parity with gold, our ability to do 30
night be estimated and geuged, and
in view of our unparalleled
growth and resources might be favor
IDLY passed upon; but when our avowed
,ndeavor is to maintain such parity in
.egard to an amount of silver increasing
It the rate of $50 100000 yearly, with
10 fixed termination to such increase,
t can hardly be said that a problem is
presented whose solution is free from
loubt.
The people of the United States are
ntitled to sound, stable currency, and
o money recognized as such on every
xchange and in every market of the
vorld. Their government has no righa