Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1894-04-06
Silver and Gold.

are interesting.
| believe that if the bill under consider
alton should become a law 1t would be re-
garded as a retrogression from the IMAM
cial intentions indicated by our recent re-
peal of the provision forcing silver oulllon
purchases. that it would weaken If II dld
not destroy returning faith and confidence
in our sound financial tendencies, and that
as a consequence our progress to renewed
business health would be unfortunately
checked and a return to our recent dlstres-
sing plight seriously threatened
This proposed legislation is so related 10
the currency conditions growing out OF the
law compelling the purchase OF silver oy
the government. that glance at such
conditions and partial review OF the la"
referred to may not be unprohtaoie. ooo
Between the 14th day of August lo9o,
when the law became operative, AID tne
Ist dsy of November, 1893. when the
clause it contained directing the purchase
of silver was repealed, there were purchas-
ed by the Secretary of the Treasury more
than l6S. OO0, 900 of ounces of silver bullion
In payment for this bullion the govern
ment issued Its treasury notes OF various
denominations, amounting to nearly $loo,
0O0. 600, which notes were immedlately
added to the currency in circulation among
our people.
Such notes were by the law made legal
tender in payment of all debts, public ana
private, except when otherwise expressly
| stipulated, and were made recelvaole ioI
customs, taxes and all public dues, anu
when so received might be relssued. Iney
| we're also permitted to be held by banking
| associations as part of their lawful re-
| serves. On the demand of the holders
these Treasury notes were to be redeemed
| in oold or silver coin in the discretion OF
| the Secretary of the Treasury; but IL was
declared as part of this redemption pro
vision that it was.the established poncy
| of the United States to maintain the TWO
metals on q parity with each other upon
the present legal ratio as may be proVloeo
by law"
The money coined from such bullion was
| to be standard silver dollars, and alter
directing the immediate coinage OF httie
less than 28, 900, 900 ounces, the law pro
| yided that as much of the rema'ning
| bnllion should be thereafter coined as
might be necessary to provide for the re-
demption of the Treasury notes issued on
its purchase, and that any gain or selgh-
forage arising from such coinage shall De
accounted for and paid into the Treasury.
This gain or seigniorage evidently lnoicates
| 80 mnch of the bullion owned by the gov
| arnment as should remain after using a
sufficient amount to coin as many stand-
arm silver dollars as should equal IN num-
ber the dollars represented by the Treas
ury notes issued in payment OF the entre
quantity of bullion.
These treasury notes now ouIseauudns a. naa
and in circulation amount to Sl32.9ol' zoo,
and although there has been thus far but a
| comnarativeIy small amount of this bullion
| coined vet the so-called gain or selgnlor-
| age. as above defed, which would arise
from the coinage of the entire mass, mas
been easily ascertained to be quantity ol
| bulliou sufficient to make when coined %,
l56. .68l standard silver dollars.
Considering the present intrinsic RELATION
/ between gold and silver the maintenance OF
, the parity between the two metals, as
| mentioned in this law, can mean nothlnP
less then the maintenance OF sucn parity
; in the estimation and confidence OF tne
people who use our money IN tneir uaily
, transactions. Manifesrly the MAINTAIN
ance of this parity can only be- accomplish
I'd. SO far as it is affected by these Treasury
/; notes. and In the estimation OF the holders
r of the same, by giving to such holders. Oh
: their redemption, the coin, whether IL Il
gold or silver, which they prefer II l"i
lows that while in terms the law leaves tnt
0 | choice of coin to be paid on such redempt
ion To the discretion of the Secretary OF tne
Taeasury. the exercise of this discretion
if opposed to the demands OF the nolder
il entirely inconsistent with the eHectiVt
0 and beneficial maintenance OF tue parity
/ between the two metals.
If both gold and silver are to serve US a.
money, and if they together are 10 supp,
D to our people stable currency, tne ne
cessity of preserving this parity is obvlons
ri Such necessity has been repeatedly con
ceded in the platforms of both politlca
: narties and in our Federal statutes. lt /,
? nowhere more emphatically recognized
than in the recent law which repealed the
nrovision under which the bullion now OIL
hand was purchased This law insists
upon the maintenance of the parity IL
! valne of the coins of the two metals ana
the equal power of every dollar at all times
in the markets and in the payment o
debts" The Secretary OF the treasury
; has. therefore, for the best OF reasons, no
, only promptly complied with every de
mand for the redemption of these Treasury
notes in gold, but the present situation o.
well as the letter and spirit OF the Ia"
aupear plainly to justify. If they 90 no.
f enioin upon him, continuation OF sucl
D redemption. A..
we have now outstanding more thar
S338 600 900 in silver certificates issued
nnder existing lave They are serving the
purpose of money usefully and without
7 Question. Our gold reserve, amounting u
only az little more than $lOO, GOO 0oO, II
directly charged with the redemption
$346. 900. 600 of United States notes
When it is proposed to initiate our siivel
, currency it 10 time for strengtnenlng oul
! gold reserve instead of depletingit- car
moi. conceive of q longer step towart
silver monometallism than We take wnei
we spend our gold to buy silver cirtiilcate'
for circulation, especially in view OF Una
practical difficulties surrounding th'
replenishment OF our gold.
Il This leads me to earnestly present tn'
desirability of granting to the Secretary
, | the Treasury better power than no"
exists To issue bonds 70 protect our goil
reserve when for any reason it should o,
necessary. Our currency is now IN Fuel
confused condition and our nnancia
affairs are apt to assume at any time >,
critical a position that it seems to me suci
0 a course is dictated by ordinary prudence
. am not ipsensible to the arguments ~
favor OF coiniug the bullion selgniorsg'
now in the Treasury, and | believe !
, could be done safely and with advantage
the Secretary OF the Treasury had tn'
power to issue bonds at a low rate oi inter
: est under authority in substitution OF ths
now existing and better suited to the pro
lection of the Treasury.
hope a way will present itself IN I'M
near future for the adjustment OF our mon
! etary affairs in such q comprehensive ant
conservative manner rs will accord U
!, silver its proper place in our currency; bnt
in the meantime, / am extremely solicitor
that whatever action we take on tnl
subject may be such as to prevent loss an'
encouragement TO our people at home ant
the destruction of confidence in our imam
ciai management abroad.
> WITH prime cattle worth less than SIC
per head in Australia and meat upon the
free list, it is quite possible that we may
be an importer of colonial meat. The av