The times. [volume] (Richmond, Va.) 1890-1903, 1894-03-30

iauon arecting subjects so important and
tai Ieaching as. our finances and currency.
=" sutihs other and more important rea-
9ons lot my disapproval OF this section
snaii, however, assume that under its
provisions the treasury notes issued in
payment for silver bullion will continue
10 pe redeemed as heretofore In silver
OF gold at the option OF the holders, and
,nat II when they are presented for re-
uefhpuon, or reach the Treasury In any
o'her manner. there are In the Treasury
coined silver dollars equal I'm nominal
value TO such Treasury notes, then and
In that case, the notes will be destroyed
ana silver certificates to an equal amount
be substituted.
4 Dangerous Scheme.
/ am convinced that this scheme Is III
advised and dangerous. AS an ultimate
result OF its operation Treasury notes
which are legal tender for all debts, pub
lie and private. and which are redeemable
in gold or silver. at the option Of the
holder, viii be replaced by silver certif-
Gates. which. whatever may be their
character and description. viii have none
Of these qualities. In anticipation Of this
result. and as an immediate effect. the
Treasury notes Will naturally appreciate
In value and desrabillty 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 lead 10 their withdrawal from
general circulation. TO be Immediately
presented for gold redemption or 20 be
boarded for presentation at more con-
venient season. The sequel Of both ope-
rations Will be a large addition TO the
silver currency in our circulation and a
Treasury. The argument has been made
that these things will not occur at once
because a long time must elapse before
the coinage Of anything but the seignior-
age can be entered upon. If the physical
effects OF the execution Of the second sec
tion Of this bill are not to be realized
until far IN the future, this may furnish
strong reason why II should not be
passed 50 much In advance: but the post
ponement Of its actual operation cannot
prevent the fear and loss Of confidence
and nervous precaution which would i'm
medately follow its passage and bring
about rs worst consequences. I regard
this section Of the bill az embodying a
plan by which the Government will 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 our people This Is an
exact reversal Of the policy which safe
finance dictates il we are TO preserve
parity between gold and silver and main
tain sensible bimetalism.
Must Strengthen III Gold Reserve.
We have now outstanding more than
1898 10000 in silver certificates issued un-
der existing laws. They are serving the
purpose Of money usefully and without
question. Our gold reserve. amounting TO
only little more than $lOO.OOO.OO0. is di-
rectly charged with the redemption of
s3i60DoG0 Of United States notes When
II is proposed TO initiate our silver cur
rency il is "A time for STRENGTHENING our
gold reserve. instead Of depicting IT,
cannot conceive of a longer step toward
silver mono-metallism than we take when
we spend our gold to buy silver certi6-
Gates for circulation. especially I'm view
Of the practical difficulties surrounding
the replenishment Of our gold
This leads me to earnestly present the
desirabiity Of granting 10 the Secretary
of the Treasury a better power than now
exists 10 issue bonds 10 protect our gold
reserve when for any reason il should
be necessary. our currency is i'm such a
confused condition and our financial af-
fairs are apt 10 assume at any time
so critical position that Ii seems 90 me
such course is dictated by ordinary
prudence.
| am not insensible TO the arguments I'm
favor Of coming the bullion seigniorage
now IN the Treasury. and ] believe IL
could be done safely and with advantage
if the Secretary Of the Treasury had the
power to issue bonds at a low rate Of
interest under authority I'm substitution
of that now existing and better suited to
the protection Of the Treasury.
hope a way viii present itself I'm the
near future for the adjustment Of our
monetary affairs in such comprehensive
and conservative manner as will accord
90 silver It's proper place I'm our currency:
but In the meantime / am extremely So
licitous that whatever action we take on
this subject may be such as 10 prevent
loss and discouragement TO our people
at home, and the destruction Of conf
dence in our financial manarement
abroad. GROVER CLEVrTAvD
Executive Mansion March %. 1894