The herald., 1894-03-30

arise from the coinage of all the bullion
on hand, which gain or seigniorage this
section declares to be sos, l57 .681. II
directs that the money so coined or cer-
titicates isaued thereon shall be used in
payment of public expenditures, and
provides that if the needs OF the treas
ury demand it the secretary of the treas
ury may, in his discretion, issue silver
certificates in excess of such coinage not
exceeding the amount of the seigniorage
in said section authorized to be coined.
The second section directs that ae
soon as possible after the coinage OF
this seigniorage the remainder of the
bullion held by the government shall
| be coined into legal tender standard
silver dollars, and that they shall be
held in the treasury for the redemption
| OF treasury notes issued in the purchase
of said bullion. It provides that as fast
as the bullion shall be coined for the
redemption of said notes they shall not
| be reiesued, but shall be cancelled and
destroyed in amounts equal to the coin
held at any time in the treasury derived
from the coinage provided for, and that
silver certificates shall be issued on
such coin In the manner now provided
by law. 1t is, however, especially de.
clsred in said section that the act shall
not be construed to change the existing
laws relating to the legal tender charRc-
ter or mode OF redemption OF treasury
notes issued for the purchase of silver
bullion to be coined.
The entire bill is most unfortunately
constructed. Nearly every sentence
presents uncertainty and invites a con-
troversy as to its meaning and intent.
The first section is especially faulty in
this respect, and it is extremely doubt
full whether its language would permit
the coEsummation of its supposed pur-
poses. am led to believe the promoters
OF the bill intended in this section to
provide tor the coinage of the bullion
constituting the gain or seigniorage, ss
it is called, into standard silver dollars,
and yet there is positively nothing in
the section to prevent it's coinage into
any description of silver coins now au-
thorized under any existing law. | sup
pose this section was also intended in
case the needs Of the treasury called for
money faster than the seigniorage bull
lion could actually be coined, to permit
the issue of silver certificates in advance
OF such coinage. But its language would
seem to permit the issuance OF such cer-
tifcates to double the amount OF the
seigniorage as stated, one-half of which
would not represent an ounce of the Hil
YER in the treasury. The debate upon
this section in congress developed an
earnest, positive difference of opinion as
to it's object and meaning. In any event
l am certain that the present perplexi-
ties and embarrassments of the secre-
tary of the treasury ought not to be
augmented by devolving upon him the
execution of law so uncertain and con-
fused.
am not willing, however, to rest my
objection to this section solely on these
grounds. In my judgment sound finance
does not commend further infusion OF
silver into our currency at this time,
unaccompanied by further adequate pro.
vision for the maintenance in our treas
ury of safe gold reserve.
Doubts also arise as to the meaning
and construction of the second section
of the bill. II the silver dollars therein
directed be coined are, as the section
provides, to be held in the treasury for
redemption of treasury notes, it is eug-
gested, that, strictly speaking. eertiti-
Gates cannot be issued on such coin Gin
the manner now provided by law"
because these dollars are money held
in the treasury for the express pur-
pose OF redeeming treasury notes on
demand, which would ordinarily mean
that they were set apart for the pur-
pose of substituting them for these
treasury notes. They ore not, there
fore, held in such way as to furnish a
basis for certificates according to any
provision of the existing law. II, how
ever, silver certificates can properly be
issued upon these dollars, there is moth
boo ko inH 10 ha nh
acteristics and functions OF these certif-
icates. If they were to be of the
same character as the silver Ger
tifcates in circulation under
the existing laws, they would
at best be receivable only for Gus,
toms, taxes and all public dues; and
under the language OF this section, it s,
to say the least, extremely doubtful
whether the certificates it contemplated
could be lawfully received even for such
purpose.
Whatever else may be said of the un-
certainties OF expression in this bill,
they certainly ought not to be found in
legislation affecting subject 60 import
ant and far-reaching as our finances and
currency. In stating other and more
important reasons for my disapproval OF
this section, l shall, however, assume
that under its provisions the treasury
notes issued in payment for silver bull
lion will continue to be redeemed, as
heretofore, in silver or gold, at the option
of the holders, and that if, when they
are presented for redemption, or reach
the treasury in any other manner. there
are in the treasury coined silver dollars
equal in nominal value to such treasury
notea. then, and in that case, the notes
will bed estroyed and silver certificates
to an equal amount substituted.
am convinced this scheme is ill
advised and dangerous. As an ultimate
result of its operation the treasury notes
which are legal tender for all debte,
public and private, and which are re-
deemable in gold or silver at the option
of the holder, will be replaced by silver
certificates which, whatever may be
their character and description, will
have none of these qualities. In antici-
patton of this result, and as an immedi-
ate effect, treasury notes will naturally
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 circulation to
be Immediately presented for gold re-
demption or to De boarded for presenta-
ton at more convenient seaeon. The