The midland journal. (Rising Sun, Md.) 1885-1947, 1893-05-05
QUESTIONS OF THE DAY.
IN EITHER GOLD OR SILVER.
Law Requiring the Redemption OF
Treasury Notes.

THE PROMISE MADE TO THE NEW YORK
BANKERS, BY Elk SECRETARY FOSTER
LAST NOVEMBER, WAS A GROSS
VIOLATION OF LAW.
The views of leading New York
bankers published in The Post are
remarkable. The bankers appear to
assume that the Secretary Of the Treas
ury has the right to use the public
money, according to his discretion,
without regard to the statutes of the
United States. They ignore the fact
that there are no paper issues in circu-
lation which authorize the holder to
demand gold coin, except gold Ger
tifcates.
The resumption act of July Ia, 1875,
provided for the redemption in coin
(not eold) the legal tender notes (green.
backs) outstanding on the LIST of Jan
uary, 1878, and authorized the sale of
bonds to buy coin (not gold) "to the
extent necessary" for that purpose.
The act of July IA, 1890, miscalled
the Sherman act, provides that the
Secretary of Treasury shall "redeem
such notes Treasury notes issued in
exchange for bullion in gold or silver
coin at his discretion y and it further
declares that che the Secretary of the
Treasury shall coin the silver bullion
purchased under the provisions of this
act as much as may be necessary to
provide for the redemption Of the
Treasury notes herein provided tor.'
The greenbacks and the Treasury
notes, by the express terms of the
statutes providing for their redemption,
are redeemable in the same kind of
money, namely, coin, not gold coin.
When there is not sufficient coin in the
Treasury for the redemption of ether
greenbacks or Treasury notes, the Sec
rotary has the power to make up the
deficiency. When there is not SUI
fcient coin in the Treasury to redeem
greenbacks he may sell bonds and buy
coin for that purpose under the redemp'
tion act. When there is not sufficient
for the redemption of Treasury notes
issued under the act of 1890 he must
coin silver for that purpose. When
there is sufficient of either gold or sill
ver coin the Treasury for the purpose
of redemption he has no right to sell
bonds. The law only authorizes him
to sell bonds to buy coin "to the extent
necessary" to redeem the greenbacks
outstanding on January l, 1879.
There are over $5O,000,000 of silver
coin and bullion, subject to coinage, in
excess of the silver certificates and
Treasury notes outstanding which is
applicable to the redemption of green
backs, and the amount is accommodating
every month to the extent OF the differ
euce between the coined value and the
market price of the 100000 ounces
of silver bullion acquired monthly
under the act of 1890. All this excess
can be used for the redemption of green,
backs and leave sufficient silver in the
Treasury to be coined for the redemp-
tion of Treasury notes issued under the
act of 1890.
The fact that other Secretaries have
exercised their discretion to furnish
gold for export and retain the silver in
the Treasury, or pay it out to the peo-
pie for use in this country, does not
change the law, or authorize the bankers
of New York or any one else to demand
gold redemption for either greenbacks
or Treasury notes of the act of 1890
The bankers should understand that
Mr.. Carlisle is the first lawyer who has
been Secretary Of the Treasury fol
many years, and that his education and
training will not allow him to disregard
the law as an executive officer. He
has ample means at his command t(
comply with every obligation of the
Government, without increasing thu
public debt, or adopting any othe
extraordinary or illegal proceeding.
The promise of ex Secretary Foster
made to the bankers Of New York OIL
the 18th Of November, 1891, was
gross violation of law. and no traine'
lawyer could have made such promise
He said
"The resumption act confers author
ity upon the Secretary of the Treasur.
to issue bonds to any extent he ma,
feel called upon to do, to increase o
maintain the gold reserve. The act o
July IA, 1890, commands him to pre-
serve the parity between gold ant
silver. 1t has always been the custom
of this country to pay its obligations il