The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-06
Tho Plan by Which Gold and Silver
Can. 1t Is Hoped, Be Kept
at a Parity
An Important Pamphlet Which
Excltes Some Comment on
Wall Street.
It 10 Said to BE in Full Accord with tho
Views of the Now Secretary
orth Treasury.

| ~ S~o"s VoAoc ~ SO.S pEOuIloLOT6 OK
tho Wall Street Journal containing what
purported to be the financial policy OF the
Cleveland administration. The article was
prepared by Henry M. Benedict, a retired
business man and careful student of finan-
cial questions. He ia brother of 4. G.
Benedict, and the plan he sets forth has
been credited to u. g. Benedict until to-
day. Briefly. the policy of the new ad-
mlniatration as outlined by Mr.. Benedict
Ia to establish reserve fund to maintain
the parity of gold and silver go as to keep
all the money Of the government on m
equality. 1t is further proposed to pradu-
ally retire the legal tender notes, stop
Issuing treasury silver notes under
the Sherman law and provide for
paper currency based upon actual
coin placed on deposit with tho govern
ment; there is to be no paper currency what
ever except coin certificstss. which are to
represent SO much money held by the gov
eminent. Tho plan provides for the sale
OF O.OOO.OO OF bonds yearly with which
to retire the existing paper money. the
same to be continued for sixteen years.
Mr.. Benedicts statement in detail is as
follows:
Our paper money Is contrary to the let
ter and spirit Of the constitution. 1t was
issued as a tool of war. and should be
made to disappear with the passions of the
conflict. The time to regulate the value
of our silver money has come. Two reme-
dies have been proposed: 1. Free coina ge,
to put the market price of silver bullion up
to Its coinage value. 2. To form union
with other nations in an agreement on
common ratio.
Neither OF these plans Is feasible. The
only way to maintain the purchasing value
OF the silver dollar on par with that of
LENT fund. Into this fund is to be paid in
gold an amount equal to the difference be-
tween the stamped value of the silver dol
lars and the bullion value of the silver con-
tanned therein. All profits hereafter re-
silver to be paid into this fund. which is to
be kept intact. the equivalent being ad-
justed each year on the average price Of
silver bullion during the preceding year.
-, 10 establish an equivalent in the fund at
the present time requires a bout $40 600, 00U.
notes-reserve-$10O,OO 900. 900. 9. The seign-
forage profit derived from coming silver
bullion held for treasury notes under the
act of 1890 (the Sherman act), 1924, 600 600.
.. Free gold in the treasury at present,
$40Oo,000. There is thus in the treasury
almost u sufficient sum to establish the
fund. The difference can bs acquired with
| ont difficulty from the revenues or by the
sale of bonds. The inventory valuation of
United States property is stated at S6O. .OOO.-
O0O.OO0. OF which there is: Gold, $685. O0O,-
600; silver, $587, COO, 000 total, ST. 243, OOO.-
coo.
The United States can gradually obtain
| and hold double this amount of the pre-
cious metals if necessary. The CONNER
cial value Of the gold and silver product in
rfnI NkpAx ef,
600. The United States can stand the
struggle for gold and maintain its equi--
librium. The way to retire and cancel all
paper money ia prepared bv the gold and
silver certificates in use, which are merely
"warehouse receipts" for money deposited
with tho governments. The following ia
the method proposed for dealing with this
paper money now existing:
treasury notes - Amount issued Feb |
l, $l2S, 100000. Under the operation of the
equivalent fund. coin the bullion, retire
the notes. issue silver certificates instead
and place the seigniorage profit in the fund. |
United States notes-$332. .00O. 900. Sell
$50. 100000 United States bonds per year
and apply the proceeds to retire and cancel !
United States notes. In 16 years its place
as currency will be filled by the isoue of sll-
YER money. Place the 100000. COO reserve in
the equivalent fund. National bank notes,
$1G8, 100000.
This money is not the money of the con-
stltution and haa been verv EXPENSIVE
one to the people Of the United States. The
national banks have received as interest on
bonds deposited to secure ci culatIon over
$780, 000,Q in 25 years. With the maturity
OF the bonds III 1897 their power to issue
will end unless new Legislation is obtained
1t should not be given. Silver money forti-
Ted by the proposed fund" will make the
best reserve possible for moneyed institu-
tions and they should bo prepared to re-
ceive from depostors this money aa it grad
ually takes the place Of paper money IN the
channels of trade.
If existing institutions will not grant the
facilities others will be organized and take
the business OF depositots. No new burden
will be added by the adoption of the plan
to that which exists at present in main
tanning specie payments and maintaining
the legal ratio of gold and silver in the
coinage. The plan will diminish the bur
den i'll the exchange of six hundred millions
paper money.
Silver money has an intrinsic gold value of
two-thirds of its face value. and the seign-
forage profit in stamping it will make up
the other third. A decline in silver bullion
below the price paid for it is provided for !
ries with it In the operations of this plnn
its own resources for conversion or re-
demption in gold equivalent. The
purchase Of gold by the treasury will ,
DflnR DICK any loss OF reserve IN the fund, I
and stop foreign shipments until the pur-
chase ia completed. The domestic demand
for gold is small, except III pnnics. which
will not reach the equivalents fund. The
plan. therefore, will lesssn tho demand for
gold at the treasury. The United Staten
can maintain its silver money equal to gold
to any amount that congress may author
ize. 1t Ia visa to maintain the present I
ratio. and push forward the substitution OF I
silver money for paper money as rapidly a.
possible wh,le the price of silver is so low,
saving up this ssignioraRe profit in tho fund
instead OF increasing tho ratio in the coins.
The f. 90 coinage silver advocates will find
in this plan larger outlet for silver Z
in the next tsn or fifteen I
yenrs than it is possible to obtain by any !
othor method short OF absolute FREQ coinage. /
At tho termination OF the time necessary to Il
som pote the plan tho money OF the United L
states will consist entirely OF gold and sill t
yer coin, tho certificates in use being receipts
or coin deposits. 1t is fair to predict that
he future price OF silver will be advanced
~ tha increase in it's coinage, according to
his plan. and that the amount i'll the =
Equivalent fund will bo rsduosd from year d
o year and the gold reserve proportIonately o
estOred To the n etensurv ~