The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-12-27
MONEY-SILVER. GOLD, PAPER.

Senator Teller may fairly be classet
among the silver enthusiasts; still hi
statements touching the silver situation
in Mexico. ascertained by personal obser
walton and inquiry, present point OF deel
concern in this country and one that ha
been urged by silver advocates all through
the controversy, and that is the ability @
the government to maintain a silver cur
| rency without regard to the policy o
other governments. The Mexican govern
ment, it seems, has maintained its circu
lation upon silver basis alone, and viii
continue to do SO, which circumstanc,
will prompt the silver advocates here &c
inquire. if Mexico can do this, why not
the United States?
The following taken from recent is
sue of the New York Commercial AID
vertiser is another:
Strictly speaking, seigniorage is TIT
charge made by any national government,
for coming bullion on private account. L
usually takes the form OF certain per
centage. fixed by law and deducted from
the metal brought to the mint. la Other
words when an individual brings to gov
eminent mint a quantity of one OF the
| precious metals TO be coined on his private
| account, he will receive weight of coin:
equal to the weight OF pure metal brought
less the percentage deducted as compensa
| ton to the government for its services
and incidental expenses of coinage, and
! plus the weight OF the alloy.
When it is proposed to coin che seignior-
age silver now In the treasury the mean
ing OF the proposition is that all the silver
! bullion purchased under the act of July,
| 1890, commonly called the Sherman act,
not already coined and over and above the
amount that would be needed to furnish
| standard silver dollars to match each dol
| lar represented by treasury notes issued
under the law, shall be- coined into
standard dollars.
The word seigniorage is derived from
the word seignior, or king. Sei,,niorage
| is a revenue. In the vaults of the United
States treasury lie over 500, 900 Of
silver bullion secured as tax for the
coinage of silver. This can now be
coined and used in general appropria-
tons for pensions and other needs of
the government.
The truth of the matter is our govern
ment never appropriated a dollar to pur-
chase silver. 1t was an automatic in
crease to the volume of the currency by
the deposit of silver mined in this coun-
try and the issuance of a certificate of
deposit, the so-called Sherman dollar or
coin treasury note. The word purchase
was necessary to establish the difference
between the commercial and coming
value in order to secure for the govern
ment the seIgnIorage reveiu,.
President Cleveland is entirely Utopian
in his idea of international money.
English money is gold, but that does net
make it circulate elsewhere. Interna-
tional money is the bill of exchange, re-
deemabie in commodit e., and these
commodities are gold and silver bullion,
iron ore, cotton, tobacco, ETC., etc. The
Herschel commission, which recently
examined the monetary systems of the
world, found Brazil floating a
fat money at par, yet experience
ing no difficulty IN foreign
exchange. Domestic coinage cuts no
If the contract with a foreign country
calls for gold, gold must be furnished,
not however as money, as dollars or
eagles, but as bullion, as commodity,
and in this category of commodities
fall gold bonds of railroads and
also those OF the United States.
The so-called Gresham law now some
three hundred years old to the effect that
an inferior coin drives out its superior is
no longer applicable since the introduce
ton of the bill of exchange. 1t might
have been true three hundred years ago
when weak nations pilfered the coinage
of stronger countries, but in the magni-
tude of international trade as now con-
Quoted the bill of exchange practically
puts a stop to these small doings except
in a few instances OF modern and very
recent times, to one of which | desire to
allude because in my opinion the panic
in the United States is directly traceable
to it.
On the 18th day OF October,
1898. the firm of Heidiebach,
Ipelheimer & Co., gold ex-
porters in the city of New York, as sub
agents for the European fiscal agent of
Austria, took one million dollars of coin
treasury notes TO the sub-treasury and
asked their redemption in gold. mas
much as specific directions were given
10 have the gold prepared for shipment
by next days steamer TO Germany, the
officials we'll knew that the gold was in
tended for the war chest of Austria. A
consultation was held with Secretary
Carlisle. and it was decided TO redeem in
gold, although this much abused treas
ury note permitted its redemption III
silver.
Queries: Was it the money or the pol
icy at fault? May not the United States
as well as France and other great ma
tons protect its gold reserve: Knowing
the gold was desired, not fos trade, bat
for :. foreign geld reserve, what should
have been our policy? Ii these raids on
our gold reserve by the simple redemp-
ton OF paper money, by such firms as
Kuhn, Loeb 6 Co.. Seligman 6 CO.,
Heideibach, lpleheimer & Co. mote the
names) are kept up, how long can q gold
reserve Of 500, Oeo, 900 withstand the as
saults Of a paper currency of over
$500. 000, coo, OF which 1886. coo, 900 G.
greenbacss are redeeuabls on demand,
and 500, 000, coo. OF national bank notes.
in effect. in gold:
1t is believed BY TIE writer that tie
Sherman note issued under the act Of
July II, icsA1. was the ideal nose of the
century. TOR the reason that 1t provided
automatic increase 70 the volume of tie
currency III keeping with tie steady
growth of the country and also per
nitted tie adoption OF policy 10 pro-
tee; the gold reserve, the Hon John
Sherman TO the contrary notwithsI2na-
ing.
With Mr.. Blaine and his policy with
South America this country WAS prepsr-
ing Tor an extensive trade with THAI con-
tinens. Our oyer-production was enor-
nous and a foreign vent through the
medium of reciprocity was necessary
Ships were being placed In charter in
the cities OF Baltimore, New ORGANS and
Galveston TO meet the exiGencies OF he