The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-03-29

there are in the Treasury coined silver dol
| lars equal In nominal value to such treasury
note, then, and in that case. notes will be
destroyed and silver certificates to an equal
amount be substituted.
ILL ADVISED AND DANGEROUS
! ] am convinced that this scheme is i'll adj
vised and dangerous. As an ultimate result
of its operation Treasury notes which are
legal tender for all debts public and private,
and which are redeemable in gold or silver,
at the option of the holder viii be replaced
by silver certificates, which, whatever may
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 de-
STABILITY The fact that gold can be re-
allied upon them and the further fact that
| their destruction has been decreed when
| they reach the Treasury must tend to their
| withdrawal from general circulation to be
| Immediately presented for gold redemption
| or to be boarded for presentation at more
convenient season. This sequel of both OPP
erations will be large addition to the silver
currency in our circulation and a correspond
| ing reduction of gold in the Treasury. The ar
| gument has been made that these things will
not occur at once because long time must
elapSe before the coinage OF anything but
the seigniorage can be entered upon. If
the physical effects OF the execution
of this bill are not to be realized
until far in the future, this may
furnish strong reason why it should
| not be passed SO much in advance; but
the postponement of its actual operation can
not prevent the fear and loss OF confidence
and nervous precaution which would imme-
| diately follow its passage and bring about
its worst consequences.
A REVERSAL OF A SAFE POLICY.
regard this section of the bill as embody
ing plan by which the government will be
obliged to pay out its scanty store of gold
for no other purpose than to force an un-
natural addition Of silver money into the
hands of our people This is an exact re-
versal of the policy which safe finance die
tates If we are to preserve parity between
gold and silver and maintain sensible BIZ
metallism
We have now outstanding more than three
hundred and thirty eight millions of dollars
in silver certificates issued under existing
laws. They are serving the purposes of
money usefully and without question. Our
gold reserve, amounting to only little more
than one hundred millions, is directly charged
with the redemption of three hundred and
forty six millions of United States notes.
When it is proposed to initiate
our silver currency it is a time
for strengthening our gold reserve, instead
of depicting it. l cannot conceive of q
longer step toward silver monometallism
o.AetA +" . oohc WAOll "o Sk'citeA Oui SOAN "
silver certificates for circulation, especially
in view of the practical difficulties surround
ing the replenlshment of our gold.
POWER TO SECRETARY OF TREASURY.
This leads me to earnestly present the de-
sirability of granting to the Secretary of the
Treasury better power than now exists to
issue bonds to protect our gold reserve when
for any reason it should be necessary. Our
currency is in such confused condition and
our financial affairs are apt to assume at any
time SO critical q position that it seems to
me such course is dictated by ordinary
prudence.
am not insensible to the arguments in
favor of coming the bullion seigniorage
now in the Treasury, and I believe it could
be done safely and with advantage, if the
Secretary of the Treasury had the power to
issue donds at a low rate Of interest under
authority in substitution of that now exist
ing, and better suited to the protection Of
the Treasury
hope way will present itself in the near
future for the adjustment of our monetary
affairs in such a comprehensive and conserva
tive manner as will accord to silver its proper
place in our currency; but in the meantime
am extremely solicitous that whatever
action we take on this subject may be such
as to prevent loss and encouragement to our
people at home, and the destruction of con
fidence in our financial management abroad.
GROVER CLEVELAND,
Executive Mansion, March 30, 1894.