Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1894-04-05

provides for the inmediate coinage OF the silver
bullion in the treasury which represents the so
called gain or seigniorage. which woaid arise
from the coming Of all the bullion on hand,
which gain or seigniorage this section declares
10 be So 156 $751; It directs that the money so
coined or the certificates Issued thereon shall
be used in the payment OF public expenditures,
and provides that II the needs of the treasury
demands it the secretary Of the treasury may
in his discretion issue silver certificates In ex,
cess of such coinage not exceeding the amount
Of seigniorage In said section authorized 20 be
coined
The second section declares that as soon a.
possible after the coinage Of this seigniorage.
the remainder OF the bullion held by the gov
ernment shall be coined into legal tender
standard sflye dollars and that they shall be
held In the treasury for the redemption of
treasury notes issued in the purchase OF said
bullion II provides that fast SIS bullion
shall be coined for the redemption of said notes
they shall be re-issued. but that they shall be
cancelled ana destroyed in amounts equal 70
the coin held at any time Ia the treasury de
rived from the coinage provided for, and that
silver certificates shall be issued on such coin
in the manner now provided by law. It is,
however. especially declared in such section
that the act shall not be construed to change
existing laws relating to the legal tender char
acter or mode of redemption Of the treasury
notes issued for the purchase of the silver bull
lion TO be coined
The entire bill is most unfortunately con-
certainty and invites controversy as to it's
meaning and intent The first, section is es
pecially faulty in this respect and 1t is extreme
ly doubtful whether its language would permit
the consummation Of its supposed purposes
am led to believe that the promoters of the bill
intended in this section to provide for the coin
age OF the bullion constituting the gain or
seigniorage as it is called, into standard silver
dollars and yet there is positively nothing in
the section to prevent its coinage into any de-
scription of silver coins authorized
under any existing law. I suppose
this section was also intended in
called for money faster than the seigniorage
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 double the
amount OF Seigniorage stated, one-hah of
which would not represent ounce of silver
in the treasury. The debate upon this section
in congress developed an earnest and positive
difference OF opinion as to its object and mean
ing. In any event, am clear that the present
perplexities and embarrassments of the secre-
tary OF the treasury ought not to be augmented
by devolving upon him the execution of a law
SO uncertain and 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
further infusion of silver into currency
at this time unaccompanied by further ade-
quate provision for the maintenance in
treasury OF q safe gold reserve
Doubts also arise as the meaning and con-
struotion OF the second section of the bill II
the silver dollars therein direct, d to be coined
are, as the section provides, to be held in the
treasury for the redemption Of treasury notes,
II Is suggested that strictly speaking certifi-
Gates cannot be issued on such coin ain the
manner now provided by law" because these
dollars are money held in the treasury for the
express purpose of redeeming treasury notes
on demand which would ordinarily mean that
they were set apart for the purpose of substi-
fnfi fhnr1 for
are not therefore, held in such way as to fur
nish basis for certificates according to any
provision of existing Law. If. however, silver
certificates can be properly issued upon these
dollars there is nothing in the section t. indi-
cate the characteristics and functions of these
certificates. If they 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 it is to
say the least, extremely doubtful whether the
certificates it contemplated would pc lawfully
received even for such purposes.
Whatever else may be said of the uncertain
ties Of expression in this bill they certainly
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 disapprovai of this section shall, how
ever, assume that under its provisions the
treasury notes issued in payment for silver
bull on will continue to be redeemed, hereto
and that if, when they are presented for re-
demptionN 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
the notes will be destroyed and silver
certificates to equal amount substituted
am convinced that this scheme is ill-ad-
vised and dangerous AS ultimate result OF
its operation treasury notes, legal tender for
all debts, public and private, and which are re-
deemable in gold or silver. at the option of the
holder, are to be replaced with silver certifi-
Gates, which, whatever may be their character
and inscription. will have none of these quail
tiles. In anticipation of this result, and
immediate effect, the treasury notes will natu-
rally appreciate in value and desirability 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 circuia-
ton to be Immediately presented for gold re-
demption or to be boarded for presenta ton at
more convenient season
The sequel of both operations will be large
addition to the silver currency in our circula-
ton and a 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
ything but the seignforage can be entered
upon If the physical effects of the execu-
ton of the second section of this bill not TO
be realized until far in the future this may fur
nish strong reason why it should not
be passed so much in advance; but
the postponement of it's actual operation
cannot prevent the fear and loss of confidence
and nervous prostration which would i'm
mediately follow it's passage and br ng about
its worst consequences. Iregard 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 unnatural addition of silver money
into the hands of our people. This Is an exact
reversal of the policy which safe finance die
tates, II are to preserve parity between
gold and silver and maintain sensible bimetal-
lism
We have now outstanding more than 1898. :.
coo 900 in silver certificates issued under exist
ing laws. They are serving the purpose OF
money usefully and without question: Our
gold reserve, amounting to only little more
than s10O. 600 00I, is directly charged with the
redemption of s3te 60J, 0GU of United States
notes When 1t is proposed to initiate our sill
YER currency it is time for strengthening our
gold reserve instead of depicting it cannot
conceive of longer step toward silver mono
metallism than we take when spend our
gold to buy silver certificates for circulation.
especially in view of the practical dim.
gold.
This leads me to earnestly present the desir-
ability of granting to the secretary of the treas
ury a 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 q confused condition and our financial
affairs are apt to assume at any time so critical
. position that IL seems to me such q course Is