The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-06-09

eircuiased In this country At their par
value because .thers vas one perfectly
solvent institution which was forced 10 &c
tept them q: that valuation" The Law
having made them receivable in payment
cf debts due 20 the government they could
always be paid into the treasury ~ their
rsr value in gold. But" says Mr.. Cock
ran.
TIE capacity Of the government 20 absorb
ssese dollars VS. necessarily limited 20 she ex-
sssas OF ifs revenues. II tie Bland act had re-
E,sined Ia force until the nombe: Of standard
Collars coined had largely exceeded tks total
fsvesres Of ths goveYansns there would bave
been no place ~ which the surplus could Be ex-
changed AZ par with tie gold dollar. A. they be-
came ret1ndsss the liability 20 export them
fseelT would have become apparent. aad they
yoald inevitably have de,xeea.ei 10 the bull
isn value Of toe silver they contained
This is Mr.. Cockrans common sense an
sser to those who point out 10 him that
the silver dollars issued under the Bland
set never sank TO discount. - Mr.. Cleve-
land in his Warner letter of 1856 predicted
they would. Mr.. CleveIand's letter was
inaccurate only in speaking o; the danger
- immediate; il was sure to hare heen
fll6iIed II the Bland act had continued in
existence. The Bland act Is in every way
Esore vicious than the Sherman Law Of
$50. II endured twelve years. and il it
vas now revived and lasted another twelve
years, by that time there would be over
eight hundred million standard dollars in
sctuai circulation. a greater amount than
the treasury could absorb, and they would
., once sink to q discount
The Sherman act is rernicious legisia-
ton, for in its operation the government 10
Subjected to heavy loss. The bullion
which it purchases is . steadily depreciat-
nag commodity, but. says Mr.. Cochran.
'tshe loss falls upon tho government which
Is responsible for the scnse!ess legislation
which produce. il. II the dollar coined
under the operation OF the Bland act sank
t. discount il would mean shrinkage in
the value Of the money in the pocket Of the
citizen. Where q vicious or unsound
financial policy is parsued by govern
ment, it is manifestly better that the loss
aocruing from i. should fall upon the gov
eminent which is responsible for it. rather
than upon the citizen who 10 . victim
OF it,"
Under the Sherman act We purchase
600 ounces Of silver annually 1t the
market value. In payment Of this silver
the government issues notes payable ''in
ccan." The statute requires the secretary
OF the treasury to maintain the parity be-
tween gold and silver and in order to
maintain this last provision Of the Law the
secretary In redeeming these notes is
bound to redeem in gold or in an amount
Of silver equivalent to their face value in
geld. The silver purchased by the gov
ernment cannot be used in redemption of
these coin notes; it remains idle in the
treasury precisely a. il it were iron or hay.
or barley or tobacco. The free coinage
leader, Mr.. Bland, confessed this when
he declared in March, 1892, that the
notes issued under the Sherman law
were practically gold notes. Under the
Sherman act every increase in the number
OF the notes issued involves an obligation to
acquire larger supply of gold. The notes
~ they are forced into circulation displace
apd expel some other form of currency,
AID as gold is the only money of inter-
national value it is steadily withdrawn
from the treasury for export. The holders
OF the notes issued under the Sherman act
sseinY their volume increase while the
amount Of gold for their redemption de-
cseases. hasten to use them in discharge Of
dsbts due 70 the government. and consc-
qaently the revenues Of the government
are paid in its own paper obligations, and
the government which the Sherman Law
campels to obtain an extraordinary supply
o: gold 10 prevented by the practical conse-
qiences OF the law from obtaining the
sapplv of gold which would be ordinarily
yielded oy its revenues. The Sherman
lcw does not authorize the government to
borrow gold for the redemption of the
notes issued under il. The resumption
act empowers the secretary of the treas
ury to borrow whatever gold may be
necessary TO redeem all outstanding
United States notes known as greenbacks.
While, therefore, gold could not be bor-
rowcd for the direct purpose Of redeeming
the coin notes issued under the act Of 1890,
yet these notes could be exchanged at the
treasury for United States notes-green-
tacks-and these could in turn be ex-
changed for gold. This would be an in.
direct method Of maintaining gold pay
iaents on the paper issued against the
silver bullion purchased under the Sher-
han act. and wo aid he q practical demon
citation of silver and substantial adop-
taon of the gold standard.
The sherman act was passed for the
purpose Of stiflening the price OF silver,
hut its effect has been 10 depreciate it,
Mr. Cochran says:
In 1873 silver was demonetixed by Germany
end the United States and the coinage of silver
vas Suspended in France: yet In the two years
between 1873 aud is7S the fall ia tie price OF
silver WAS oniy shou, 5 5 cents an ounce la
$50 the sherman law MAS passed and during
the Two years from $50 To ls9. The price OF sill
Yer fell about l. cents an ounce From ls7s 70
ISIS silver declined about 10 ceuta an ounce.
from is9i 90 is9s IL declined about II censs an
ounce. Its downward course since tue adoption
al tie sherman law has been vastly moro rapsd
Shsn at any period siuce iSgs- The production OF
oliver throughout thu world In i,se was aaou,
equal 20 its production ia 1884, and this rapid
rtrtnkage In value cannot, therefore, be ascribct
20 increased production
Silver has fallen under the governments
Increased purchase Of silver. because il is
! purchaser. not q consumer Of silver but
an agency - Yrcveaf consumption. The
storage Of silver III the treasury increases
! .he visible supply aud by increasing i;
! accexSar4iy dSpreclates the pricc The