The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1894-04-06


called gain r seiguiofage. which would arise
from The coming OF all the bullion on md
which gain or seigniorage tn 8 section declares
to be - .l56 OIL 1t directs that the money 50
coined or the certificates is u ID thereon shall
be used in the payment Of pubic expenditures.
and p DIVIDES that il the n els of the treasury
demands il the secretar OF the trea-urv ma
in his discretion issue silver certificates in ex
cess Of such coinage not exceeding the amcu
OF seigniorage in said section authorized TO be
coined
The second section decl ares that soon as
possible after the coinage OF this seiSniorage.
the remainder OF the button held by the gov
eminent shall be coined into legal tende:
standard silver dollars and that The shall be
held in the treasur. for the redemption OF
treasury notes issued in the purchase OF said
bullion 1t provides that aS fast as bullion
shall be coined for the redemption Of said notes
they shall be re-issued but that thew shall be
cancelled and destroyed in amounts equal to
the coin held at any time in the treasury de-
rived from the coinage provided for, and that
silver certificates shall be issued on such coin
in the manner now pro ided By law. 1t is,
however. especially declared in such section
that the act shall not be construed to change
existing laws relating to the lie ;al tender Oh NJ
acter or mode OF redemption of the treasury
notes issued for the purchase OF tbs silver bull
lion to be coined
The entire bill is most unfortunately con-
struc,ed Nearly every sentence presents un-
certainty and invites controversy rs TO Its
meaning and intent The first section is es
peciallv faulty in this respect and it is extreme
ly doubtful whether its language would permit
the contamination OF its supposed purposes J
am led TO believe that the promoters OF the bill
intended in this section to provide for the coin
age of the illion constituting the gain OF
seigniorage as it is called. into standard silver
doll md fhar is
the section to prevent its coinage into anv de-
scripton OF silver coins now authorized
under any existing law. l suppose
this section was also intended, ir
case the needs OF the treasury
called for money faster than the seigniorase
bullion could actually be coined to present the
issue Of certificates in advance Of such coinage:
but its language would seem to permit the Is
suance Of such certificates to double the
amount of seigniorage stated, one-half Of
which would not represent an ounce OF silver
in the tire ,sury The debate upon this section
in congress dev e!oped an earnest and positive
difference OF opinion rs to its object and mean
ing In any event, am clear that the present
perpleyities and emblrrassmentS of the secre-
tarv of the treasury ought not to be augmented
by devolving upon him tine execution OF law
SO uncertain an 4 confused
am not willing, however. to rest my Objec
ton to this section solely on these grounds: In
nv Judgment sound finance does not commend
q further infusion of silver into our currency
at this time unaccompanied by further ade-
Quate provision for the maintenance In our
treasury Of o safe gold reserve.
Doubts also arise as to the meaning and con-
struction OF the second section of the bill II
The silver dollars therein direct d to be coined
are, rs the section provides. to be held in the
treasury for the redemption Of treasury notes,
it is suggested that strictly speaking certiti-
Gates cannot be issued on such coin in the
manner now provided bv law" because these
dollars are money held in the treasury for the
express purpose of redscming treasury notes
on demand. which would ordinarily mean that
they were set apart for the purpose of substi-
tutiug them for these treasury notes. They
are not therefore. held in such way as to fur
nish a basis for certificates according TO any
provision of existing Law. If. however, silver
certificates can be properly issued upon these
dollars there il nothing in the section , lndi-
cate the characteristics and functions Of these
certificates If thew were to be Of the same char
acter IS 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 the section 1t is. to
say the least, extremely doubtful whether the
certificates it contemplated would be lawfully
received even for such purposes.
Whatever else may be said of the uncertain
ought not to be found in legislation affecting
subjects so important and far reaching as our
finances and currency
In stating other and more important reasons
for my disapprOvIl Of thi ton. l shall, how.
ever, assume that under its provisions the
treasury notes issued in payment for silver
bull on will continue 10 be redeemed as hereto
fore. in silver gold al the option OF the hold.
ers and that if, when they are presented for re-
denption. or reach the treasury in any other
manner. there are in the treasury coined sill
yer dollars equal in nominal value to such
treasury notes. then and in that case
the notes will be destroyed and silver
certificates to an equal amount substituted
l am convinced that this scheme is ill-ad-
viSed and dangerous. As an ultimate result OF
its opera ton treasury notes, legal tender for
all debts public and private. and which are re-
deemable in gold or silver. ut the option OF the
holder, are to be replaced with silver certif-
Gates, which, whatever NAV be their character
and inscription. will have none of these quail
tiles In autici patton OF this result, and as an
imme iiate effect. the treasury notes will natu-
rally appreciate in value and desirabilitv. 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 circula-
tion to be Immediately presented for gold re
dempiion or to be boarded for presentation a.
q more convenient season.
The sequel of both operations will be large
addition to the silver currency in our circula-
ton and corresponding reduction of gold in
the treasury. The argument has been made
that these things will not occur at once because
long time must elapse before the coinage OF
any thing but the seigniorage can be entered
upon. If the physical effects Of the execu
ton Of the second section OF this bill are not 10
be realized until far in the future this NAV fur
nish a strong reason WIZ it should NOT
be passed SO much in advance: but
the postponement of its actual operation
cannot prevent the fear and loss of confidence
and nervous prostration which would i'm
mediately follow its passage ami br ng about
its worst consequences. l regard this section
Of the bill as embodying plan by which the
government will be obliged to pay out its
scanty store of gold for no other purpose than
to force an unnaIr al addition Of silver money
into the hands o: ir people. This is an exac;
reversal Of the pU.icy which safe finance die
tates il we are 10 preserve parity between
gold and silver AMI main ain sensible bimetal
! liSm.
We have now outstanding more than 81
co 20 o in silver certificates issued under exist
ing laws. They are serving the purpose OF
money usefully and without, question Our
gold reserve. amounting 10 only little more
| than slJJOO0O is directly charged with the
redemption of ssh 10 .ojI OF United States