The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1894-01-06

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The following letter from the Pen
Of Hon. Geo. J. Lewis Of Ketchum
appeared in the Denver News of the
26th ult. It contains good sug-
gestions regarding the disposition
of our bullion product and We COM
mend it to tbs readers of the KEY
STONE:
A. reader Of The News Who il inter.
ested especially in the current discussion
Of silver beg to offer some simple sag
gestiOns which I think will commend
themselves to those Of the much .mooted
question ~ to the pnssibility Of remedial
legislation in the states.
1t is unnecessary to dwell upon the I'M
paralleled depression which at this time
characterizes oil American industry, and
the widespread distress which hes ensued
from the demonstration Of silver. The
cause and effect are patent to most read
ers of The News. They are fully cogni-
can't of the evils which have developed in
the financial policy Of the present national
legislation, and they are fully agreed, !
hope, that the most salutary remedy 10 in
congress. But when it transpires that
the president and congress can no longer
be relied upon to exercise proper regard
for the best interests of all the people. and
that there is no longer any hope for the
restitution of silver from that source.
then the right is inherent in the people
to consider such means of relief a. may
be found in the legislative powers Of the
state.
What may those powers BET First let
us determine those distinctly prohibited,
and then take the field. Looking over the
revised statutes of the United States, we
find that foreign coins cannot be made q
legal tender. In section 10 of the con-
stltution we find that mo state shall enter
into any treaty, alliance or confederation;
emit bills of credit or make anything but
gold and silver coin . tender in payment
of debts" All talk about maintaining
Mexican dollars, bullion certificates or
other evidences of value or debt at par in.
the currency of the country, by state en-
actment, is therefore merely idle.
Nevertheless, agree with your cores
pondent, Mr.. Nichols, and the Ell Pas0
county Populists in the belief that the
states have a remedy. Iagree with them
also in the belief that in that case the true
solution lies in Withholding the American
product from the markets Of the world
by storage in the silver producing and
the silver using states-a proposition l
hold to be feasible-but in the modus OPP
erandi Of the most plausible schemes thus
far suggested are discovered serious Oh
jectlons both as to their equity and their
constitutionality.
1t is very generally conceded that if
the American product, which is i've
twelfths that of the world, could he with
held from the markets, such demand
would ensue among the consumers Of the
metal - to effect very rapid apprecia
ton In value. Next to free coinage this
is certainly a most desirable end; and
here is the way it may, in my judgement
eventually, lie attained:
Let each state appropriate moderate
sum for the construction of storage vaults
and require its treasurer to receive de-
posts Of fine silver bullion whenever
presented and to issue thereon in each
case certificates in suitable denominations
for as many dollars worth Of tine silver
Is the SEINE amounts to Ut the New York
quotation on the dare Of presentmcnt. If,
tor instance, Mr.. Smith deposits 1000
ounces in the treasury Of Colorado when
silver in New York is quoted at 20 cents,
we shall suppose that tor The sake of con-
venience he IS paid off in seven 500 Ger
tiicates. Each Of those certificates will
read systematically as follows: This
certi6es that there have been deposlted in
the treasury of Colorado 500 value in fine
silver, payable in same to bearer on de.
mand." Should these certificates be SUBJ
presented for redemption when
silver In New York is worth 81 per ounce,
the holder thereof will be entitled to 700
500 worth hand the state
will thereupon be at liberty to enter in
its surplus account 300 ounces, represent
ing to the state directly and the taxpayer
indirectly, instead OF tho Wall street
broker, profit of that amount. If de-
sired this surplus could he utilized as the
basis of a reissue for the purposes of
state expenditure, or, in the discretion Of
the treasurer, placed upon the market.
The fact these certificates call for
''value" instead Of .'ounces" will insure .
uniform acceptabi!ity in all transactions,
aud they will Immediately circulate in
abundance with and perform all the
functions of the best forms Of currency,
the prohibited nominal
legal tender quality. They will represent
full value received, the evidence of which
is the bullion in the possession of the
state. They will not offer any inducement
to speculation. The fact that they call
Tor silver in Idaho or Colorado at current
New York quotations, considered togeth
or with the cost of transportation to the
East, will effectually preclude such con
tineency. No man will pay II cents for
that which be can buy for 70 cents.
No state should permit such act to take
effect until such time as, say, 1--WE other
silver producing states shall have adopted
measures. This will control the
bulk of the American product, insure .
rising market aud remove the contingency |
Of any risk to the states in engaging in
what might otherwise be regarded BY
some a dangerous speculation. do not
think that such an objection will obtain.
Il did not govern the action of congress
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