The Providence news. (Providence [R.I.]) 1891-1906, 1894-03-30

of silver that applies to the coinage OF
gold, namely, that a person taking
lump of metal to the mint could have IT
coined into as many dollars as the mass
of metal contains when divided by the
number of grains contained in single
dollar there would not have been any
seigniorage. In other words, had the
bullion purchased been paid for by the
silver dollars it would have coined into,
there would have been no profit, "
hence no seigniorage. But as the
standard silver dollar is less valuable
than the gold dollar, there was apparent
profit amounting to the difference in
value between the two dollars. So by
the issuance of promises TO pay in gold
an artificial seigniorage was created.
but in point of fact there is not penny
weight of silver i'm the treasury to offset
the further issue of promises to pay to
be issued against this artificial seignior-
age.
Had Mr., Cleveland rejected this
measure on the solid ground that there
was no seigniorage THE News would
have given him its heariiest approval,
but he favors the coming of this myth
cal seigniorage provided Congress will
give to the Secretary of the Treasury
power TO borrow gold on other promises
to pay bearing interest-called bonds
in order to buy silver and pay for it in
gold.
This is the kind of fnancieriDg that
the country and the world stands in
dread of today, and the United States
can hardly attempt TO hold silver up on
a parity with gold while the balance Of
the world is engaged in demonetizing it.
Mr.. Cleveland objects to tais second
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 the people,"
In other words he fears that the gold
would be drained from the treasury by
these certificates, and unquestionably
his fear is well founded, yet it is not
this fear that troubles him. but the
scarcity of gold in the treasury. His
objection is not because of the principle
but because of the scanty supply of gold
at present in the treasury, for he winds
mp his message by declaring:
~ am not insensible to the arguments in favor
OF coming tho bullion seienoTage now in the
with advantage. IL the Secretary OF the Treasury
had the power 10 issue bonds at a low rate OF in
terest under authority in substitution OF that now
existing and better suited TO the protection Of the
treasury"
In other words let us borrow big lot
of gold and then we will be prepared 10
swap 90 cent silver dollars for gold dol
lars worth 100 cents for much longer
time, ergo, with more safety. What
nonsense!
70 show the falsity of his reasoning
He talks about the maintenance of the
parity between gold aud silver. There
is no such parity at the present time,
and in order to get ''seigniorage' he
has to acknowledge it. A ''proft' or
seigniorage can only be obtained with two
standards OF value. 1t is simpossible with
one. We must buy silver by a gold
standard and sell it at silver standard
in order TO secure 'profit" IL the
silver dollar was equal to the gold dollar
no profit could possibly accrue by the
transaction.
Mr. Ceveland's scheme merely indi-
Gates a roundabout way of accomplish
ing what the Bland bill would accom-
plsh in IA more direct way. With silver
in its present condition we would simply
be swapping one dollar in gold for every
80 cents in silver.