The times. [volume] (Richmond, Va.) 1890-1903, 1893-06-02
THE WAY THE SHERMAN act IN
JURES

The Bland bill. parsed in 1878, providei
that the mint should coin two millions of
silver dollars Of 42 10 grains each month,
and those silver dollars were worth less
than gold dollars when coinage Of them
commenced and they steadily declined in
value from that time forward Congress
also provided that owners Of these silver
dollars might deposit them in the Treas
urv for safe keeping, and take in place Of
them certificates Of deposit. Under
these provisions Of law the Government
coined an enormous sum Of these depr7-
ciated dollars, which, almost all. however,
come TO be deposited in the Treasury
with the certificates Of their deposit in
circulation in their place The currency
carried them, however, without difficulty
because their quantity has never come to
be sufficient TO embarTass the Government
IN the receipt Of its income. It's receipts
Of them and payments of them out for
its liabilities kept them always moving
as part Of the currency. The law was,
Of course, destined in time to produce
so many Of them that the Governments
receipts would be unable to care for them,
when they would. Of course. have pro-
duced just that state Of affairs which is
now on US. brought on by the Sherman
law.
Mr.. Bland was not content. however
with the injury that he was threatening
the country with. He demanded a more
speedy movement towards the precipice.
He kept up mis- agitation, and I'm July, $780,
the outcome OF it was the Improvement IN
the methods Of destruction contemplated,
I'm the act of that month fathered by
John Sherman, alternately free silverite
and monometallist We believe this 10
be the most disastrous act in its tenden-
oies ever passed by legislative bodS
1t increased the cionage Of the depre-
ciated silver dollars from two millions a
month TO four and a-half millions, but
the immediate injury 1t did the United
states lay not in that fact. Had this
been all, it would have operated only as
the Bland act operated, and no one can
say how far the ability of the Govern
ments income and payments could have
been stretched in keeping the dollars at
par. They must have broken down in
time. but We could have postponed the
evil day for a considerable period. The
hurt which this act carried with Il was
in the following provision. 1t provided
that the Government should buy each
month the monthly quota Of crude silver,
giving in payment for it the Governments
notes. and that those notes should be re-
deemable at the pleasure Of the holder
IN coin. This was at once interpreted 10
mean that the holders might demand for
their notes gold coin. and the practice
OF redeeming them on demand in gold
coin was at once commenced, and having
been once commenced. the Government
has been unable to abandon it. The bare
suggestion Of paying these notes in silver.
only, a few weeks back, almost created
a finacial panic.
How, then. has this act worked?
AS fast as the Treasury issued these
notes from one Of its doors, they were
taken around TO another and cashed in
for sold. which was at once shipped 10
Europe TO pay for securities that Euro
peans. alarmed at our threat 10 pay a
dollar with sixty-lye cents, had sent
here for sale, and TO settle unfavorable
balances Of trade. This provision OF the
Sherman act has made IL, therefore. i'm.