The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-03-29
Cleveland Stands Firm For
the Parity of Gold
and Silver.
A GREAT STATE PAPER.
Enough Silver Bullion on Hand
to Redeem the Treasury
Notes.
Present Bill a Mass Of Inconsis-
teneies, That Would Lead to
Endless Controversy.

WASHINGTON, March 90, 1s94.-The Presi-
dent sent the following message to the House
of Representatives at noon today
To the House of Representatives.
return without my approval House bill
numbered 1856, entitled ''An act directing
the coinage of the silver bullion held in the
Treasury and for other purposes
By strong desire to avoid disagreement
with those in both Houses of Congress who
have supported this bill, would lead me to
approve it if could believe that the public
good would not be thereby endangered, and
chat such action on my part would De a
proper discharge of official duty. Inasmuch,
however, as / am unable Ito satisfy myself
that the proposed legislation Is either wise
or opportune, my conception, Of the obh-
CATIONS and responsibilities attached to
the great office hold forbids
the indulgence of my personal desire
and inexorably confines me TO that course
which is dictated by my reason and judg-
ment, and pointed out by sincere purpose
to protect and promote the general interest
of our people =.
The financial disturbance which swept
over the country during the last year was
unparelled in its severity and disastrous
displacement of faith in our financial ability,
and a loss of confidence in our fiscal policy.
THE RESPONSIBILITY.
Among those who attempted to assign
causes for our distress, it was very generally
conceded that the operation of q provision
of law then in force, which required the
Government to purchase monthly a large
amount of silver bullion and issue its notes
in payment therefor, was either entirely, or
to a large extent, responsible for our condi-
ton This led to the repeal, on the first day
of November. 1s93,. of this statutory
SO low in the depths of depres-
sion, and timidity and apprehension
had so completely gained control in financial
circles, that our rapid recuperation could not
be reasonably expected Our recovery has,
nevertheless, steadily progressed, and though
less than five months have elapsed since the
repeal of the mischievous silver purchase re-
quirement wholesome improvement is un-
lnistakably apparent. Confidence in our
absolute solvency is to such an extent rein
stated. and faith in our disposition to adhere
to sound financial methods is so far restored
as to produce the most encouraging results
both at home and abroad.
WHEELS OF INDUSTRY IN MOTION.
The wheels of domestic industry have been
slowly set in motion and the tide of foreign
investment has again started in our direc-
tion.
Our recovery being SO well under way
nothing should be done to check our con-
valescence; nor should we forget that a re-
lapse at this time would almost surely re-
duce us to lower state of financial distress
than that from which we are just emerging.
PRESENT BILL RETRoGREssIvE.
believe that if the bill under considera-
ton should become a law, it would be re-
garded as retrogression from the financial
Intentions indicated by our recent repeal of
the provision forcing silver bullion purchases
that it would weaken if it did not destroy
returning faith and confidence in our sound
financial tendencies, and that as consequence
our progress to renewed business health
would be unfortunately checked and q
return to our recent distressing plight seri-
ously threatened.
This proposed legislation is so related to
the currency conditions growing out of the
law compelling the purchase of silver by the
Government, that a glance at such condi-
tions and a partial review OF the law refer
red to may not be Improbable.
Between the fourteenth day Of August,
1880, when the law became operative, and
the first day of November, 1893, when the
cl ause it contained directing the purchase of
silver was repealed, there were purchased by
the Secretary of the Treasury more than
one hundred and sixty-eight million ounces
of silver bullion.
TREASURY NOTES ISSUED
In payment for this bullion the Govern
ment issued its Treasury notes of various
denominations amounting to nearly one
hundred and fifty-six millions of dollars,
which notes were Immediately added to the
currency in circulation among tour people.
Such notes were by the law made
legal tender in payment of all debts,
public and private, except when
otherwise expressly stipulated, and
were made receivable for customs, taxes,
and all public dues, and when 50 received
might be reissued. They were also permit
ted to be held by banking associations as a
part of their lawful reserves On the de-
mand of the holders these Treasury notes
were to be redeemed in gold or silver coin, In
the discretion Of the Secretary of the
Treasury; but it was declared as part of
this redemption provision that it was 'the
established policy OF the United States to
maintain the two metals on parity with
each other upon the present legal ratio, or
such ratio as may be provided by law"
The money coined from such bullion was
to be standard silver dollars, and after di
recting the immediate coinage of a little less
than 2S 900, 600 ounces, the law provided that
as much of the remaining bullion should be
thereafter coined as might be necessary
to provide for the redemption of the
treasury notes issued on its purchase, and
that "any gain or coinage arising from such
coinage shall be accounted for and paid into
the Treasury This gain or seigniorage
owned by the government as should remain
after using sufficient amount to coin as
many standard silver dollars as should equal
in number the dollars represented by the
Treasury notes issued in payment of the en-
tire quantity of bullion These Treasury
notes not outstanding and in circul-
alton amount to $152, ,951, ,280, and, although
there has been thus far but q comparatively
small amount of this bullion coined, yet the
so-called gain or seigniorage, as above de.
fined, which would arise from the coinage of
the entire mass, has been easily ascertained
to be quantity of bullion sufficient to
make when coined fifty five millions one hum
cred and flfGy-six thousand six hundred and
eighty-one standard silver dollars.
MAINTAINING THE PARITY,
Considering the present intrinsic relation
between gold and silver the maintenance
parity between the two metals as mentioned
In this law can mean nothing less than the
maintenance of such parity in the estima-
ton and confidence Of the people who use our
money in their daily transactions Manifestly
the maintenance of this parity can only be ac
complished, SO far as it is affected by these
treasury notes, and in the estimation of the
holders Of the same, by giving to such hold
ers, on their redemption the coin, whether
It is gold or silver, which they prefer. It
follows that while in terms the law
leaves the choice Of coin to be