The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-10-08
BOUTWELL'S PLAN.

Taking advantage of the fact that none
of the active statesmen of the day have
any practicable plan for the restoration of
silver, George S. Boutwell,, Preside
Grants Secretary Of the Treasury, has
submitted plan through the North Ameri-
can ReUie11. Mr.. Boutwell, apparently is
not so much concerned about silver as he
is about gold. His article is entitled "The
Peril of the Treasury" and is partially
devoted to the work of showing in what
these perils consist. AS a preface to his
silver plan Mr.. Boutwell, makes the re.
mark that a the present time, with many
hundred millions of currency redeemabe
in gold, the treasury holds but little gold
and has no gold revenues. In other words,
the treasury has no dues that cannot be
lawfully paid in currency. The first fea-
ture of his silver plan is to provide an
adequate gold reserve. This he does by
requiring tina all duties on imports shall
be paid in gold. He proposes that Con-
gress enact law declaring that after a
certain day the duties on imports may be
paid in gold coin. gold certificates, silver
certificates, United States notes and treas
ury totes. These include all the kinds Of
currency directly issued by the Govern
tBCHts 1Ao tnO ol1fCt luChOGc dilu tUc
treasury notes are paid in. each note or
certificate is to be Cancelled and in its
place note or certificate is to be issued
precisely the same except that the new
issue shall not bear the declaration that it
is receivable for all Government dues. In
this way, without any violation of public
faith. as Mr.. Boutwell, thinks. the kinds of
money in which duties on imports may be
paid will be reduced to three-gold coin,
gold certificates and United States notes.
Mr.. Boutwell, has now got ready to deal
with silver. While dealing the silver
dollar a terrible blow by emitting it from
a list Of the kinds of money in which
duties may be paid, he proposes to give it
lift by creating for il local circula-
ton. He provides for the coinage of all
native silver, the treasury TO retain four
ffths Of the seignorage, the bullion owner
being allowed the remaining fifth in addi-
ton, of course, to the mber of dollars
the commercial value of silver on a gold
valuation would entite him to. Assuming
that there should be no change from the
present commercial value of silver, the
bullion owner would receive under Mr.
Boutwelps plan about $50 out of each $1OC
coined, plus one-fifth Of the seigniorage,
which would amount % SO. The Govern
ment would put the other $40 in the treas.
ury TO be devoted to the creation of a
fund for the ultimate redemption of silver
dollars in gold. An indispensable condi.
tion of this plan is that the importation OF
foreign silver in whatever form shall BIZ
prohibited. Mr.. Boutwell, assumes thai
the local demand will maintain the por
ton of the local product that would reach
the mint at parity with gold. but admits
that any considerable importation OF
silver would throw his plan out of gear
This is plan to be thought over. Some
thing must be done. The Government has
no gold revenue 1t has drifted into the
position Of responsibility for the redemp-
tion of hundreds of millions of currency il
gold with no assurance that a dollar o.
gold will come to it in a natural way
The plan of Mr.. Boutwell, retains silver
dollars as the medium of payment of in
ternal revenue dues and of all priyat
dues except in satisfaction of gold con
tracts. But if the plan 10 aintains silve
dollars at parity with gold dollars The,
will perform every function they nov
perform except that of paying duties OF
imports.