Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1894-04-12


cient to carry the act into effect.
The first section provides for the i'm
mediate coinage OF the silver bullion in
the treasury, which represents the So
called gain or seigniorage which would
arise from coming all the bullion on
hand, which gain or seigniorage this
sections declares to be 500, l56,681 1t
directs the money SO coined, or certifi-
Gates issued thereon, shall be used in
payment OF public expenditures, and
provides that if the needs OF the treas
ury demand it the Secretary of the
Treasury may, in his discretion, issue
silver certificates in excess OF such coin
age, not exceeding the amount OF the
seigniorage in said section authorized to
be coined.
COMING THE REMAINDER.
The second section directs that as
soon as possible after the coinage OF this
seigniorage the remainder Of the bullion
held by the government shall be coined
into legal tender silver dollars, and that
they 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 as the bullion
shall be coined for the redemption OF
said notes they shall not be reissued,
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 on such coin
in the manner now provided by law. 1t
is, however, especially declared in said
section that the act shall not be con-
strued to change the existing laws re-
lating to the legal tender character or
mode of redemption of the treasury
notes issued for the purchase of silver
bullion to be coined.
THE ENTIRE BILL IS FAULTY.
The entire bill is most unfortunately
constructed; nearly every sentence pre-
sents uncertainty and invites contro-
versy as to its meaning 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 in 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 description OF silver coins now au-
thorized under any existing law. sup
pose this section is also intended, in
case the needs of the treasury called for
money faster than the seigniorage bull
lion 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 cer-
tificates to double the amount of the
seigniorage as stated, one-half of which
would not represent an ounce of silver
in the treasury.
A DIFFERENCE OF OPINION.
The debate upon this section in Con-
gress developed an earnest, positive diff
ference of opinion as to its object and
meaning. In any event | am clear the
present perplexities and embarrass-
ments of the Secretary of the Treasury
ought not to be augmented by devolving
upon him the execution Of law so un-
certain and confused. l am not willing,
however, to rest my objection to this
section solely on these grounds. In my
judgment, sound finance does not com
mend a further infusion of silver into
our currency at this time, unaccompa-
MED by further adequate provision for
the maintenance in our treasury of
safe gold reserve.
OTHER REASONS FOR DIsAPPRovAL.
In stating the other and more impor-
tant reasons for my disapproval of this
section 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 or gold, at the option OF the hold
ers, and that If when they are presented
for redemption or reach the treasury in
any other manner, there are in the treas
ury coined silver dollars equal in nomi-
nal value to such treasury notes, then
and in that case the notes will be de-
stroyed and silver certificates to an equal
amount substituted. | am convinced
this scheme is ill-advised and dangerous.
AS an ultimate result of its operation
the treasury notes which are legal ten
der for all debts, public and private,
and which are redeemable in gold or sill.
yer at the option OF the holder, will be
replaced by silver certificates, which,
whatever may be their character and
description, will have none of these
qualities. In anticipation of this result
and as an immediate effect, the treasury
notes will naturally appreciate in value
and desirabiity. The fact that gold
can be realized upon them, and the
further fact that their destruction has
been decreed when they reach the treas
ury, must tend to their withdrawal from
general circulation, to be immediately
presented for gold redemption, or to be
hna r,t ta1 for tat . ,
venient season.
A REDUCTION OF GOLD.
The sequel OF both operations will be
large addition to the silver currency in
our circulation and corresponding re-
duction of gold in the treasury. Argu-
ment has been made that these things
will not occur Mt once, because a long
time must elapse before the coinage OF
anything but the seigniorage can be en-
tered upon. II the physical effects OF
the execution OF the second section OF
this bill are not to be realized until far
in the future, this may furnish strong
reason why il should not be passed 20
much in advance, but the postponement
OF its actual operation cannot prevent
the fear and loss OF confidence and the
nervous prostration which would imme-
diately follow its passage and bring
about its worst consequences.
l regard this section OF the bill as em-
bodying plan by which the govern
ment would be obliged to pay out its
scanty store Of gold for no other purpose
than to force an unnatural addition OF
silver money into the hands OF the peo-
pie. This is an exact reversal of the
policy which safe finance dictates, il
we are to preserve the parity between
gold and silver and maintain sensible
bimetalism.