The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-02-14
Coming of the Mythical Seigniorage
Opposed by Mr.. COOmbs and Fa-
vOred by Judge CulbersOn.
COLLOQUY IN THE SENATE
Teller Questions Gray as to Cleve-
lands Hawaiian Policy,
And Is Informed that the President
Threw Up the Sponge When He
Found He Could Not Restore Lii.

WASHINGTON, Feb. 13.-The House
spent the day in debate on the Bland
seigniorage bill, the principal speeches be-
ing those by Mr.. Culberson, of Texas, In
favor of the measure, and Mr.. Coombs, of
New York, in opposition. Several times to-
day Mr.. Bland attempted to reach an
agreement for closing general debate to-
morrow, with a view to securing a vote,
but objection was made. over forty mem
bers have asked for time to speak, and it
may be possible that a special order will
be required to bring the bill to a vote. Mr..
Bland does not think this method will have
to be resorted to.
When the House met, this morning, Mr..
Brown, of Indiana, attempted to have the
House concur in the unanimous report of
the committee on elections in the Whatley-
Cobb contested election case from Ala
bama, confirming the title to his seat, but
Mr.. Pence objected, and, on motion of Mr..
Bland, the House went into committee Of
the whole for further consideration of the
seigniorage bill.
Mr.. Bland sought to make an arrange
ment to close debate at l o'clock to-mor-
row, but his suggestion met with a chorus
of objections from the Republican side.
Thereupon Mr.. Kilgore was recognized to
complete his speech begun last Friday. He
began by denying the statement made by
the opponents of the bill that it would
force the Secretary of the Treasury to re-
deem the treasury notes Of 1890 in silver.
1t would not in any way Interfere, he said,
with the redemption of these notes in gold
or silver, at the option of the holder. but,
having been redeemed, silver coin or GER
tificateS would go out to take their place
in the country's currency.
Mr.. Coombs opposed the bill. 1t was not
pleasant for him, he said, to differ with
his Democratic colleagues He approached
the question, he said. as a business propo-
sition. The first section OF the bill provided
for the coinage Of the imaginary seignior-
age in the treasury. There had been pur-
chased since 1890, 45O, coo ounces of silver,
for which the government paid s464, 000. 000.
Its value to-day was but s295, OOO, 900. In
other words, the loss to the government,
if liquidated, would be $16s, 900. 900. Yet"
said Mr.. Coombs, I'VE are asked, In the
face Of that great loss. to presume that
the government has made in seigniorage
since 1890, $50, 900, 600. l do not know any
thing in the shape of a business PROPOSE
ton more monstrous. There are not $419.-
000, 900 in silver. If the provisions of this
bill should be carried out this aggregate Of
coined silver would be increased to $780,
00O, ZOO, worth to-day in the markets of the
world but 1926. O00, 600.
Mr.. Bell, of Texas, who followed, con-
tended that the real question at issue was
whether the United States should exercise
its right of sovereignty to issue paper
money or issue intereSt-bearing bonds upon
which the national banks would issue ma
tional bank notes. If the treasury notes
We're redeemed and Cancelled, he continued,
and silver or silver certificates issued in
their stead, the inevitable result would be
the boarding of the legal tender money of
the country. The people did not want
CllVRr In n1f Of mo % nffnr 70 20
it INTO circulation, in spite of the fact that
S,S9O.UO had been spent in sending it to
found its way back to the treasury. and
there were now outstanding a beggarly $780,
100000. If there must be imitation, why not
issue paper money? Why not save the ex-
pense Of coinage? If there should finally be
disaster on account of the overissue Of
silver. the poor, unable 10 bear the loss,
would be the sufferers. There was no bet
ter plan for pushing this country over on to
a silver basis, in his opinion, than the
Mr.. Culberson said the general object of
the Bland bill was to get the silver bull
lion now in the treasury in circulation as
rapidly as possible. About SIS, 0O0, 600 of IL
would be a pure addition to the currency;
1t would not appreciate any class of money
nor carry a faint of depreciation into the
currency. He was a free-coinage advocate,
and in entire accord with the purpose of
the bill. If 1t became the law Il would save
the issue or soo,cO.Wo or Understanding
bonds. The government needed and must
have that amount of money, and more, too.
To be entirely frank, the purpose of this
bill was to put $1S2, 600, 900 silver dollars or
silver certificates into circulation His crit
icism of the bill was that by it's terms 1t
would prevent the redemption of any treas
ury notes in silver for two years. He
pointed out how. by an amendment, this
objection could be obviated, and Mr.. Bland
expressed his willingness to offer the
amendments suggested. Gentlemen as
sumed to be alarmed over the prospect of
the passage of this BILL" he continued.
THE country is very much nearer a panic
now than 1t will be after the passage of this
bill. The banks of the country can force
insolvency on bonds every forty-eight hours.
The treasury notes used in the process
should be returned, and If 1 were Secretary
of the Treasury / would redeem every dol
lar issued for the purchase Of silver in
silver. Applause) In conclusion Mr.. Gull
berson pointed out that in thirteen years
preceding 1891 but SIS, 900, 900 were redeemed
In gold. yet in six months in 1892 slS2. 600. 600
were redeemed. A round or applause greet
ed the close OF Mr.. Culbertson's speech.
Mr.. Warner, who.c concluded the debate
for the day, announced himself In favor Of
permitting the government to coin and is
sue all kinds of money and issue all bond
money, and the banks to issue all credit
money. The committe then rose and, at
A.AS tho HouSa adjourned