The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-08-21
SEATTLE WASHINGTON 2L :

at will the volume Of their esrcuIatins
currency. The measure being discussed
oy the silver men as n counter proposition
70 the voorhees, bill has been drawn by
Representative Bailey. of Texas. an ardent
oi-mesalIiss. who is known in the camps OF
the free coinage men TO be the real auther
OF the free coinage bill now pending in the
house as the proposition 20 be offered By
Bland as . substitute for the Wilson re-
pcaling oil. Bailey's national bank bill Is
Is follows:
A oil! TO increase the currancy and to
provide for redemption thereof and for
other purposes.
SECTION l. From and after the passage
OF this act any bank organized under the
laws OF the United States and having on
deposit with the treasurer OF the United
staxes bonds bearing interest At the rate
oi ! per cent per annum may surrender
said bonds to the treasurer of the United
states 10 be cancelled and 10 receive in lieu
thereof an amount Of national bank notes
which added TO the amount of the notes
heretofore issued TO said bank shall be
equal 20 10 cents for each dollar specified
in said bonds
Sec 2. Any bank which shall surrender
It's bonds in accordance with the first sec
ton OF this act shall thereafter he and re-
T..
now required TO be paid upon its circuia-
ton
Sec. 3. The treasurer of the United
States shall return TO any bank which has
surrendered It's bonds in accordance with
the nrst section of this act the amount
which may be in the treasury TO the credit
OF such bank On account of its redemption
fund.
SEC. L. The United States hereby as
sunes all notes issued under the first Sec
ton OF this act. and in order 10 provide
tor the redemption of said notes the secre-
tary OF she treasury is hereby directed 10
have coined into standard silver dollars all
the silver bullion now IN the treasury, ex-
cept SO much thereof as may be sufficient
10 redeem coin notes issued under the act
OF July IA. 1890 entitled An act 10 pur-
chase bullion and issue treasury notes
thereon, and for other purposes, and SAID
silver dollars shall be received as a special
fund To redeem such of said notes as may
be presented for redemption.
Sec. 5. The additional notes issued to
any bank under the first section of this act
shall be uniform in all respects with the
Eotes heretofore issued TO the same bank
ana may be counted as part OF the lawful
reserve which the law requires national
banks to hold. and said additional notes
shall be receivable the same as is provided
by law for notes heretofore issued and
when received by the treasury shall be re-
issued the same as is now provided by Ia \
for United States notes.
Bailey said his proposition would in
crease the circulation over S5I, ,O00, 900
directly and would indirectly add over
s., GOO. .00o more by releasing the sums held
In the treasury for redemption purposes,
making the total increase more than $751;
oO0,000. Besides this il would save the
taxpayers of the country over 5000. 600
in annual interest Banks In every part
OF the country would find IL profitable TO
surrender their bonds and take this addi-
tional circulation. but il would be es-
pecially profitable TO banks in those Sec
tions where the rate of interest was
highest. and these are the very sections
which stand most in need of this increase.
Said Bailey:
my bill will also utilize all the bullion
now in the treasury except what is neces-
sary to redeem notes issued under the
Sherman act. The surplus is something
like $60.000.00 which will constitute a
coin reserve fund about the same proper
ton as is now held for the redemption OF
greenbacks.
Senator Voorhees,. during his speech on
the financial question in the senate Tues
day, will read this letter from Secretary
Carlisle to show the difficulties in the way
of free coinage of silver at changed ratio
Hon. Daniel w. Voorhees,, United
States Senate-Sir: Referring TO our con-
versation relative to the probable cost in
cident TO change from the present COIN
ing ratio between gold and silver, to 16
for standard silver dollars and 1 to Il 80
for subsidiary silver, to the ratio of TO 20.
you are respectfully informed that the
number of silver dollars coined since 1878
aggregates 4l9, 81, $50. Without any al
lowanee for abrasion and loss incident to
melting the same, the coming value of
these dollars at the ratio of l to % would
be SS33, 222. l62, or $S4, Ito. 22s less than the
present face value. To recoin these dol
lars at the ratio OF | to 20 would require
the addition of 81 ,367, 700 ounces OF new
bullion. which at the average price paid
for silver under the act of July IL. 1900,
931< cents per ounce, would cost $75, ,sS3 700.
In addition to this estimate there
would be the loss from abrasion and
in melting these dollars of at least 5000,
900. which amount, together with the diff
ference in the face value of the coins
1854. 10, 2ss), would have TO be reimbursed
to the treasury by an appropriation for
that purpose. From the fact that the
silver dollars are distributed throughout
the country, il would be necessary. as they
are redeemed at the several sub-treasuries.
to transport them to the minis. and the
expense of transportation for $500. 900 000,
the amount outside the stock on hand at
the sub-treasuries and mints at Phiiadel-
phia, San Francisco and New Orleans,
would average at least II per cent. or
81, SOC. 900. Therefore. the estimate OF the
cost OF recoining the silver dollars already
coined is as follows:
New bullion TO be added ............s7 SIS. sss 700
Loss by abrasion and melting ......... 100000
Cost OF eoiniug tlabor. materials. etc. $50 900
Conner for alloy ......... ....-....... 6s.s0
TIaspspossaiion OF dollars to mints 4.5ooOco
Total. 80, go
.The stock of subsidiary coin in the
country Is estimated at sT7.0o0.0oD. which
at tuli weight would contain 5s,es9. s55
ounces of fine silver. This amount AT the
ratio of to 10. would coin 80. S.saSsR or
S2f, ,l56, los less than the present face value.
TO recuin $71.000.0dO OF subsidiary silver
into an equal amount Of fractional coin ~
the ratio OF 90 NJ would require the addi-
ton of IL. 7g7 .625 fine ounces, which at
a3I. cents per fine ounce. the average
nr,ce maid for silver under the act OF July
Ia. 1890. would cost sl7,5Zs, 30. There
would be loss OF about "a per cent OF
abrasion from the face yalne. or about
81 ass 900. 1 would. therefore. estimate
the cost of recoiniug the subsidiary silver
in the country at the ratio OF to % as fol-
lows:
Naw hulIfou u..................... Il. SIS, ,-ss
-. hv sh-axson ....-........-.... ige5, 500
ssas. ~ eSinins, labor, material. etc.. 2,sooDoo
Cooper for alloy -.-......,--+....s.. lS-sssa
80, az frausportation ............... I,l5501
Total q. i24,a1l
HEckPgTuLkTfoS.
Fasf nated cost al recol ning silver dol
lsrs ...,-..s q sa,7Gi 800
EsTIynated cost Of reeoining subsidiary