Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1894-04-04

silver dollars, and thatthey shall be held in the
treasury for the redemption Of the treasury
| notes issued in the purchase of said bullion,
| 1t provides that as fast the bullion shall no
| coined for the redemption of said notes thew
| shall not be re-issued. but shall be Cancelled
| and destroyed in amounts equal to the coin'held
| at any time in the treasury, derived from the
coinage provided for, and that silver certificates
| shall be issued such coin in the manner now
| provided by law. 1t is however, especially de-
! clared in said section that the act shall not be
| construed to change existing laws relating to
| the legal tender character or mode or redemp-
| ton of the treasury notes issued for the pur-
| chase of the silver bullion to be coined.
The entire bill is most unfortunately con-
| structed. Nearly every sentence presents I'M
certainty and invites controversy as to it's mean
| ing and intent. The first section is especially
faulty in this respect, and it is extremely
! doubtful whether its language will permit the
! cOnsummation OF its supposed purposes.
| am led to believe that the promoters of the
bill intended i'll this section to provide for the
| coinage of the bullion constituting the gain or
seigniorage as it is called, into standard silver
dollars, and yet there is positively nothing in the
section to prevent its coinage into any descrip-
| ton OF silver coins now authorized under any
| existing law. L suppose this section was also
! intended, in case the needs of the treasury
| called for money faster than the seigniorage
| bullion could actually be coined, to
permit the issue of silver certificates
| in advance of such coinage; but
Its language would seem to permit the issuance
| OF such certificates to double the amount of the
| seigniOrage as stated, one-h half of which would
not represent al ounce of silver in the treasury
The debate upon this section in the Congress de-
| veloped an earnest and positive difference of
| opinion as to its object and meaning. In any
| event. am clear that the present perDlexities
and embarrassmcnts of the secretary of the
ing upon the Execution OF law IS 50 Gncer-
| tain and confused.
II am not willing, however, to rest my objection
to this section solely on these grounds; in my
| judgment sound finance does not commend u
further infusion of silver into our currency at
| this time, unaccompanicd by further adequate
plQYi1ioc for the maintenance in treasury of
safe gold reserve.
Doubts also arise as to the meaning and con-
struchon of the SECOND section of the bill. If
the silver dollars therein directed to be coined
ale, as the section provides, to be held in the
treasury for the redemption Of treasury notes il
cannot be issued on such coin Tin the r.1up{T
now provided by law because these dollars
are money held in the treasury for the
notes on demand, which would ordinarily
mean that they were set apart for the
purpose Of substituting them for these treasury
notes. They not, therefore, held in such
way as to furnish basis for certificates accord
ing to any provision of existing law. If, how
ever silver certificates can properly be issued
upon these dollars, there is nothing i'll the sec
ton to indicate the characteristics and func-
tons of these certificates If they were to be
of the same character as silver certificates in
circulation under existing laws they would at
best be receivable only for customs, taxes and
all public dues; and under the language of this
section it is to say the least, extremely doubtful
be lawfully received even for such purposes
Whatever else may be said of the uncertainties
of expression in this bill, they certainly ought
not to be found i'll legislation affecting subjects
SO important and far reaching as our finances
and currency. In stating other and more i'm
DOrtant reasons for NV disaDproval of this sec
ton, l shall, however, assume that under its
provisions the treasury notes issued in payment
for silver bullion will continue to be redeemed,
as heretofore in silver gold tthe option of the
holders. and that if, when they are presented for
redemption or reach the treasury in any other
manner, there are in the treasury
coined silver dollars equal in nominal
value to such treasury notes then and in that
case the notes will be destroyed and silver Ger
tiicates to an equal amount substituted. | am
convinced that this scheme is i'll advised and
dangerous. AS an ultimate result OF its opera
ton, treasury notes, which are legal tender for
all debts, public and private, and which are re-
deemable III gold or silver at the option of the
which. whatever may be their character and in
scription. will have none of these qualities. In
anticipation OF this result and as an i'm
mediate effect, the treasury notes will
naturally appreciate in value and desirability.
The fact that gold can be realized upon them,
and the further fact that their destruction has
been decreed when they reach the treasury
must tend TO their withdrawal from general
circulation to be Immediately presented for gold
redemption or to be boarded for presentation at
more convenient season. The sequel of both
operations will be large addition to the silver
currency in our circulation and sponding
reduction of gold in the treasury. The argp-
ment has been made that these things will not
occur at once because long time must elapSe
before the coinage of anything but the seigniOr-
age can be entered upon. If the physical effects
of the execution of the second section of this bill
not to be realized until arin the future this
may furnish strong reason why it should not
be passed so much in advances but the postpone
ment Of its actual operation cannot prevent the
fear and loss Of confidence and nervous prostra-
ton which would Immediately follow its passage
and bring about its worst consequences.
/ regard this section of the bill as embodying
a plan by which the government will be obliged
Tfc veto OH rfI,
purpose than to force an unnatural addition of
silver money into the hands of our people. This
is an exact reversal OF the policy which safe
finance dictates, if we are to preserve parity
between gold and silver and maintain sensible
bi-metallism.
We have now outstanding more than 1888 OOO,-
0G0 in silver certificates issued under existing
laws. They are serving the purpose of money
usefully and without question. Our GOLD re-
serve amounting to only little more than
S1O000O,000, is directly charged with the redemp-
ton Of S346, 10000 of United States notes. When
it is proposed to initiate silver currency it is
q time for strengthening our gold reserve in
stead of depicting it. l cannot conceive of
longer step toward silver morometallism than
we take when we spend our gold TO buy silver
the practical difficulties surrounding the re-
punishment of our gold.
This leads me to earnestly present the desira-
bility of granting to the secretary of the treas
ury better power than exists to issue
bonds to protect our gold reserve when for any
reason it should be necessary Our currency is
III SUCH d COuIuSCu COuu1llOIl, anu our
affairs apt to assume at any time SO critical
position. that it seems to be such course is
dictated by ordinary prudence.
am not inSenSible to the arguments in favor
of coming the bullion seigniorage now in the
treasury, and believe it could be done safely
and with advantage, If the secretary of the
treasury had the power to issue bonds at a low
rate of interest under authority in substitution
of that now existing and better suited tc the
protection Of the treasury.
l hope way will present itself in the near
future for the adjustment of our monetary at
fairs in such comprehensive and conservative
manner will afford to silver its proper place
in our currency, but in the meantime am ex-
tremely solicitOus that whatever action we take
en- this subject may be such to prevent loss
and encouragement to our people at home and
the destruction of confidence in our financial
management abroad GROVER CLEVELAND.