The herald., 1894-03-30


not be reasonably expected.
The wheels OF domestic industry save
been slowly set in motion and the tide
of foreign investment has again eti lrted
in orr direction. Our recovery being
90 we'll under way. nothing shou Id be
done to check our convale5cence. Nor
should we forget that relapse { this
time would almost surely reduce us to 3
lower stage OF financial DISTRESS than
that from which we are just ems gging.
I believe II the bill under consid, ration
ahould become a law, 1t would be re-
varded as retrogTession from the fnan-
cial intentions indulged in by our recent
repeal OF the provision forcing silver
bullion purchase; shat 1t would weaken
If it did not destroy returning tfith and
confidence in our sound hnanlisisl ten
denotes, and that as consequ' lnce our
progress to renewed business health
wonld be unfortunately checke d and a
return to our recent oletreEelr lg pNgnt
seriously threatened.
Fbe proposed legislation is SCI related
10 the currency conditions gro' wing out
of the law compelling the puI chase of
silver by the government that a glance
at such conditions and partif u review
of the law referred to may not be IN
proftable. Between the 14th day OF
August, 1890, when the law became
operative, and the lst day OF N bvem ber,
1898. when the clause it cont aimed di-
rectipg the purchase OF silver. was re-
peaed, there were purchase by the
secretarv of the treasury lore than
las 600. 600 ounces of silver bu lIlion. In
payment for this bullion Il 10 govern
ment issued treasury notes of various
denominations amounting to $l56, ,O00,-
OOO. which notes were immed lately add
ed to the currency in circula lion among
our people. Such notes ware by law
made legal tender in payn lent Of all
debts. public and private. Ecept when
otherwise expressly stipu lated, and
were made receivable fer customs,
taxes and all public dues, a nd when so
received might be reisHued. They were
also permitted to be held by banking
associations as part of their lawful re-
serves.
On the demand of the bDlders these
treasury notes were to be redeemed in
gold or silver coin in the discretion OF
the secretary of the treasury; but it was
declared as part of this re dem ption pro-
vision that it was the established policy
of the United States to maintain the
TWO metals on parity " fth each other
ito as may be provided by law. The
money coined from such bullion waa to
be standard silver dollars. and after di-
recting the immediate coinage of little
less than 28,000, 600 oUncss. the law pro-
vided that as much of the remaining
bullion should be thereafter coined as
might be necessary to provide for the
redemption of treasury notes issued on
its purchase, and that "any gain or
eeiQniorage arising from Euch coinage
Ahall be accounted fiDr and paid into the
treasury"
This gain or seigTlioTage evidently in
dicates so much of the bullion owned by
the government as would remain after
using q sufficient amount to coin as
many standard silver dollars as should
equal in number the dollars represented
BY treasury notes iss sued in payment of
the entire quantity C1 bullion. These
treasury notes now outstanding and
in circulation amount to 1852, ,951 ,280,
and although there has thus far been
but comparatively small amount oi
this bullion coined, yet the se-called
gain or seigniorage, as above defined,
which would arise from the coinage of
the entire mass, has been easily ascer-
tanned to be quantity OF bullion
sufficient 10 make, when coined, 90, ,l5o,-
6Sl standard silver dollars.
Considering the present intrinsic rela.
tion between gold and silver, the main
tenance of the parity between the two
metals, as mentioned in this law, can
mean nothing lees than the mainten-
ance of such parity in the stimation and
confidence of the people who use our
money in daily transactionF- Manifestly
Al -. e. H., l.
be accomplished 80 far as it is affected
by these treasury notes, and in the esti-
nation of holders of the game, by CIV
ing such holders on their redemption
the coin, whether gold or silver, which
they prefer. 1t follows that while the
terms of the law leave the choice of the
coin to be paid on such redemption to
the discretion of the secretary of the
treasury, the exercise OF this discretion,
If opposed to the demands OF the holder,
is entirely inconsistent with the effective
and beneficial maintenance OF the parity
between the two metals.
If both gold and silver are to serve us
as money land if they together are to sup.
ply to our people safe and stable money.
the necessity OF preserving Ghis parity is
obvious. Such necessity hsH been re-
peatedly conceded in the platforms OF
beth political parties, and in our federal
statutes. 1t is nowhere more emphat-
ieally recognized than in the recent law
which repealed the prOviHon under
which the bullion now on hand was
purchased. This law insists upon the
maintenance of parity in the value of
the coins of the two metals, and the
equal power of every dollar at all times
in the markets and in the payment of
debts. The secretary of the treasury
has, therefore, for the best of reasons,
not only complied with every demand
for the redemption of these treasury
notes in gold, but the present situation,
az we'll as the letter and spirit of the law,
appear to plainly justify, if they do not
enjoin upon him, the continuation OF
such redemption.
The conditions l have endeavored to
present may be thus summarized:
First-The government has pur-
chased and now has OF hand sufficient
silver bullion to permit the coinage of
al the silver dollars necessary to redeem
in such dollars the treasury notes issued
for the purchase OF said silver bullion,
and enough besides to coin, as gain or
seigniorage, 90, 1865 additional stand.
ard silver dollars.
Second-There are outstanding and
Eow in circulation treasury notes issued
in payment of bullion purchased
amountinp tn S1b2 ph1 120 Thaya notaa