The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1894-04-06


cheek our convaIeapsaee nor shoulf
we forget that d relapse at this time
| would almost surely reduce us to q
lower stage of financial mistrust than
that from which we are just emery
ing
| IL believe that if the bill under con
siderati5n should become law il
would be regarded as a retrogression
from the financial improvements
indicated by Our recent repeal of the
provision forcing silver bullion pur-
chases, that it would weaken, if it did
not destroy. the returning faith and
confidence in our sound financial ten
denotes, and that as consequence our
| progress to renewed business health
would be unfortunately checked and
a return to our recent distressing
| plight seriously threatened, This pro-
| posed legislation is so related to the
current condition growing out of the
law compe ling the purchase of silver
by the government, that a glance at
such conditions and a partial review
of the law referred to may not be un-
profitable.
Between the nth of August, 1890,
when the law became operative, and
| the lst of November, 1913. when the
clause it contained directing the pur-
chase of silver was repealed, there
Were purchased by the secretary f
the treasury more than 16S,0o0,000
ounces of silver bullion. Ia payment
for this bullion the government issued
its treasury notes of various denomi-
nations, amounting to nearly $751;
600, 900, which Totes were Immediately
added to the currency iii circulation
among our people. Such notes were
by the law made legal tender in pay
ment of all debts, public and private,
except when otherwise expressly stip-
ulated, and were made receivable for
| customs, taxes, and all public dues,
and when so received might be re-
issued. They were also permitted to
be held by banking associations as
part of their lawful reserves. On the
demand of the holders these treasury
notes We're 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 main
tain 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 bull
lion was to be standard silver dollars,
and after directing the immediate
coinage of little less than 8,000,C COO
ounces, the law provided that as
much of the remaining bullion should
be thereafter coined as might be nec-
essary to have for the redemption of
the treasury notes issued on its pur-
chase, that amy gain or seigniorage
arising from such coinage shall be ac-
counted for and paid into the treasury.
This gain or seigniorage evidently in
dicates so much of the bullion 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 entire guam
tity of bullion. These treasury notes
now outstanding and in circulation
amount to 1852, 951 ,2S0, and although
there has been thus far but compare.
lively small amount of this bullion
coined, yet the so-called gain or seign-
forage as above defined, which
would arise from coinage of the entire
mass has been easily ascertained to be
quantity OF bullion sufficient tc
make when coined $50, 156, $50 standard
silver dollars.
Considering the present intrinsic
relation between gold and silver, the
maintenance of the parity between
the two metals as mentioned in this
law can mean nothing less than the
maintenance on such parity in the
estimation and confidence of the
people who use our money in their
daily transactions. ManifestIy, the
maintenance of this. parity can only
be accomplished, so far as it is affected
by those treasury notes and in the
estimation Of the holders of the same
ny giving these holders onl their re-
demption the coin, whether it is gold
or silver which they prefer. 1t fol-
lows that while in terms the law
leaves the choice of coin to be paid on
such redemption to the discretion OF
the secretary of the treasury, the exer-
else of this discretion, if opposed to
the most of the holders, is entirely
inconsistent with the effective and
beneficial maintenance of the parity
between the two metals. If both gold
and if they together are to supply to
our people safe and stable currency,
the necessity. of preserving this
parity is obvious. Such necessity has
been repeatedly conceded in the plat
forms of both political parties and in
our federal statutes. It is now here
more emphatically recognized than in
the recent law which repealed the
provision under which the bullion
now on hand was purchased. The
law insists upon the maintenance of
the parity in value of the coins of the
two metals and the equal power OF
every dollar at all times in the mar
kets and in the paymens of debts
THE secI etary of the treasury has,
therefore, for the best of reasons not
only promptly complied with every
demand for the redemDtion of these