The Providence news. (Providence [R.I.]) 1891-1906, 1894-03-30
THE VETO MESSAGE.


brought about the return of the measure
to the body in which it originated, with
out his approval, do not. The veto ends
the present bill at all events, and without
entering into discussion as TO future
propositions looking to the same end
which it suggests it was with distinct
sense of relief that the veto was received
by the entire business community.
Giving Mr.. Cleveland due credit for
preventing the enactment into a
law of this measure, The NEWS
regrets that the reasons given for this
interposition do not rest upon a sounder
basis than that claimed for them by Mr..
| Cleveland. IL utters this criticism with
no disposition to be hypercritical or to
find fault with President of different
political faith, but because it is sorry to
learn that the President really approves
OF BANDS scheme, and suggests a way
that would enable it to be carried into
effect. Give me bond ISSUE and you
may coin the seigniorage, is his reply to
the trainers Of the BILL
From his message it is seen that 1t is
to the faulty wording of the bill itself,
and not to the principle of the measure,
that the veto is due. He objects, not to
the coinage of the seignIorage, but to
the wording of the bill authorizing it.
Considering the bill by sections, his
objection to the first section is that
while it evidently was the intention to
coin the bullion into standard silver
dollars. it does not say so, and subsidiary
coin might be coined instead; next, sits
language would seem to permit the
issuance of such certificates to double
the amount of seigniorage as stated, one
half of which would not represent
an ounce Of silver in the treasury" He
seems to forget that not one dollar of
the so-called seigniorage would be
represented by a pennyweght of
silver in the treasury, that it is
only by mere juggling of words and
figures that even "a theoretical seignior-
age can be accounted for. There were
purchased under the silver bullion pur-
chase clause of the so-called Sherman
Act of 1890 more than 16S, S,000,0
ounces of silver. In payment
for this bullion the Government
issued Treasury notes TO $4,000, ,00s.
This bullion is worth today at the mar.
ket price of silver $50, ,040, 600 and is con-
sequently actually over-issued by Ger
| tiiicates to the extent of $13, $50, 900, SO
that any additional currency issued
| against this would be issued against a
dead loss, minus quantity. Mr..
| Cleveland obtains a theoretical seig-
niorage, as did Mr.. Bland, by pro-
cess Of reasoning the fallacy of which
is easily demonstrable. Mr.. Cleve-
| lands own words describe the process
| of reasoning by which he arrives at his
| seigniorage or profit.
"The money coined from such THAT purchase
under the sherman actl bullion was TO be standard
silver dollars, and after directing the immediate
coinage of "A little less than 100000 ounces
remaining bullion should be Thereafter
coined as might be necessary to provide
notes issued on It's purchase and that "any gain or
seign,orage arising from such coinage shall be
| or segniorage evidently indicates so much OF the
bullion owned by the government as should remain
after using sufficient amount to coin as many
standard silver dollars as should equal in number
the dollars represented by the Treasury notes is-
sued in payment Of the entire quantity Of bullion.
| and in circulation amount TO sl52, 2,e5l, $50,
and although there has been thus far
| coined, yet the s)-oalled gain or seignioiage as
above defined, which would arise from the coinage
OF the entire mass. has been easily aseeria,ned TO
be . quantity Of bullion sufficient 20 make when
coined %, i5s,6sl standard sl,er dollars
If these silver certificates were re-
deemable only in silver or if silver had
an Interchangeable value such seignior-
age would unques,ionably accrue, pro-
vided the original purchase value of the
| silver dollar had been actually greater
than its real value, an absurd assump-
| ton. But unfortu nately silver at pre-
sent has constantly shifting value, and
the worth of the bullion has shrunk.
Had the notes outstanding against it
| also shrunk in value, the same ratio of
notes could be issued against the
seigniorage, so-called, rs were issued
against the whole amount of bullion i'm
the first place. As it is the notes
already issued represented, when issued,
one dollar against every dollars worth
of silver purchased. The so-called
seigniorage represents the difference be-
tween the amount paid for the silver
and the number of standard silver dol
lars that the money could be coined into.
Now it is evident that if the bullion
had been coined into dollars as fast as it
was paid for and the seigniorage so
called also coined, the seigniorage theo,,
retically would have been in round
figures $4,000, 600. Had standard dol
lars alone been coined, and no certificates
been issued. the seigniorage would have
deprecated in value when considered as
bullion, just as the rest Of the sill
| Yer dollars have denrnciatad p,t